Rogers 2008 Annual Report Download - page 117

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ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 113
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(d) Indemnifications:
The Company indemnifies its directors, officers and
employees against claims reasonably incurred and resulting
from the performance of their services to the Company, and
maintains liability insurance for its directors and officers as
well as those of its subsidiaries.
The Company is unable to make a reasonable estimate of
the maximum potential amount it would be required to pay
counterparties. The amount also depends on the outcome of future
events and conditions, which cannot be predicted. No amount has
been accrued in the consolidated balance sheets relating to these
types of indemnifications or guarantees at December 31, 2008
or 2007. Historically, the Company has not made any significant
payments under these indemnifications or guarantees.
(iii) Fair values:
The Company has determined the fair values of its financial
instruments as follows:
(a) The carrying amounts in the consolidated balance sheets
of accounts receivable, bank advances arising from
outstanding cheques and accounts payable and accrued
liabilities approximate fair values because of the short-
term nature of these financial instruments.
(b) The fair values of investments that are publicly traded are
determined by the quoted market values for each of the
investments.
(c) The fair values of each of the Company’s public debt
instruments are based on the year-end trading values.
The fair value of the bank credit facility approximates
its carrying amount since the interest rates approximate
current market rates.
(d) The fair values of the Company’s Cross-Currency Swaps and
other derivative instruments are based on estimated credit-
adjusted mark-to-market valuation models (note 2(h)(iii)).
(e) The fair values of the Company’s other long-term financial
assets and financial liabilities are not significantly different
from their carrying amounts.
Fair value estimates are made at a specific point in time, based on
relevant market information and information about the financial
instruments. These estimates are subjective in nature and involve
uncertainties and matters of significant judgment and, therefore,
cannot be determined with precision. Changes in assumptions
could significantly affect the estimates.
16. OTHER LONG-TERM LIABILITIES
2008 2007
CRTC commitments (note 13) $ 63 $ 66
Deferred compensation 33 36
Program rights liability 29 26
Supplemental executive retirement plan (note 17) 26 15
Deferred gain on contribution of spectrum licences, net of accumulated
amortization of $6 million (2007 - $2 million) (note 5) 18 22
Restricted share units 9 16
Liabilities related to stock options 2 22
Other 4 11
$ 184 $ 214