Rogers 2007 Annual Report Download - page 93

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ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT 89
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In addition, Cable consists of the following reportable segments.
Information by reportable segment for the years ended
December 31, 2007 and 2006 is as follows:
2007 2006
Corporate Corporate
Cable Rogers items and Total Cable Rogers items and Total
Operations RBS Retail eliminations Cable Operations RBS Retail eliminations Cable
Operating revenue $ 2,603 $ 571 $ 393 $ (9) $ 3,558 $ 2,299 $ 596 $ 310 $ (4) $ 3,201
Operating expenses:
Cost of sales – – 186 – 186 – – 153 – 153
Sales and marketing 257 75 187 – 519 219 70 123 – 412
Operating, general and
administrative 1,400 484 25 (9) 1,900 1,237 477 21 (4) 1,731
Stock option plan
amendment 106 2 5 – 113 – – – – –
Integration and
restructuring 9 29 – – 38 8 1 6 – 15
831 (19) (10) – 802 835 48 7 – 890
Management fees – 64
Depreciation and amortization 737 662
Operating income $ 831 $ (19) $ (10) $ – $ 65 $ 835 $ 48 $ 7 $ – $ 164
Additions to PP&E $ 710 $ 83 $ 21 $ – $ 814 $ 685 $ 98 $ 11 $ – $ 794
In late December 2006 and during the first quarter of 2007, certain
real estate properties and related leases were transferred to RCI
from its subsidiaries. This transfer of real estate did not have a
material impact on the results of the operating segments.
Effective January 2007, the Rogers Retail segment of Cable acquired
the assets of approximately 170 Wireless retail locations. The results
of operations of these stores are included in the Rogers Retail
results of operations beginning January 1, 2007.
In January 2007, the Company completed an internal reorganization
whereby the Cable and Internet and Rogers Home Phone segments
were combined into one segment known as Cable Operations. As a
result, beginning in 2007, the Cable operating segment is comprised
of the following segments: Cable Operations, Rogers Business
Solutions (“RBS”) and Rogers Retail. Comparative figures have been
reclassified to reflect this new segmented reporting.
In addition, as a result of the intercompany amalgamation of RCI
and certain of its subsidiaries, effective July 1, 2007, the Company
discloses segment operating results based on operating income
(loss), consistent with internal management reporting.
Beginning January 1, 2007, subsidiaries no longer pay management
fees to RCI.