Rogers 2008 Annual Report Download - page 126

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122 ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These transactions are recorded at the exchange amount, being
the amount agreed to by the related parties, and are reviewed by
the Audit Committee.
23. COMMITMENTS
directors of the Company. Total amounts paid by the Company to
these related parties, directly or indirectly, are as follows:
are subject to formal agreements approved by the Audit Committee.
Total amounts paid to (received from) these related parties are as
follows:
The Company entered into the following related party transactions:
(A) The Company has entered into certain transactions in the
normal course of business with certain broadcasters in which
the Company has an equity interest. The amounts paid to these
broadcasters are as follows:
(B) The Company has entered into certain transactions with
companies, the partners or senior officers of which are or were
(C) The Company entered into certain transactions with the
controlling shareholder of the Company and companies controlled
by the controlling shareholder of the Company. These transactions
22. RELATED PARTY TRANSACTIONS
2008 2007
Access fees paid to broadcasters accounted for by the equity method $ 17 $ 18
2008 2007
Legal services, printing and commissions paid on premiums for insurance coverage $ 7 $ 2
2008 2007
Recoveries for use of aircraft and other administrative services $ (1) $ (1)
(A) The Company is committed, under the terms of its licences
issued by Industry Canada, to spend 2% of certain wireless revenues
earned in each year on research and development activities.
(B) The Company enters into agreements with suppliers to provide
services and products that include minimum spend commitments.
The Company has agreements with certain telephone companies
that guarantee the long-term supply of network facilities and
agreements relating to the operations and maintenance of the
network.
(C) In the ordinary course of business and in addition to the
amounts recorded on the consolidated balance sheets and disclosed
elsewhere in the notes, the Company has entered into agreements
to acquire broadcasting rights to programs and films over the next
five years at a total cost of approximately $258 million. In addition,
the Company has commitments to pay access fees over the next
year totalling approximately $20 million.
(D) Pursuant to CRTC regulation, the Company is required to make
contributions to the Canadian Television Fund (“CTF”), which is a
cable industry fund designed to foster the production of Canadian
television programming. Contributions to the CTF are based on
a formula, including gross broadcast revenues and the number
of subscribers. The Company may elect to spend a portion of the
above amount for local television programming and may also elect
to contribute a portion to another CRTC-approved independent
production fund. The Company estimates that its total contribution
for 2009 will amount to approximately $53 million.
(E) Pursuant to CRTC regulation, the Company is required to
pay certain telecom contribution fees. These fees are based on a
formula including certain types of revenue, including the majority
of wireless revenue. The Company estimates that these fees for
2009 will amount to approximately $50 million.