Rogers 2008 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2008 Rogers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 55
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
During 2008, the Board declared dividends aggregating $1.00 per
share on each of the outstanding Class B Non-Voting shares and
Class A Voting shares, $0.25 per share of which were paid on January
2, 2009 to shareholders of record on November 25, 2008, $0.25 per
share of which were paid on October 1, 2008, to shareholders of
record on September 3, 2008, $0.25 per share of which were paid on
July 2, 2008, to shareholders of record on May 13, 2008, and $0.25
of which were paid on April 1, 2008, to shareholders of record on
March 6, 2008.
In January 2008, the Board approved an increase in the annual divi-
dend from $0.50 to $1.00 per Class A Voting and Class B Non-Voting
share effective with the next quarterly dividend.
During 2007, the Board declared dividends aggregating $0.4150
per share on each of the outstanding Class B Non-Voting shares
and Class A Voting shares, $0.125 per share of which were paid on
January 2, 2008 to shareholders of record on December 12, 2007,
$0.125 per share of which were paid on October 1, 2007, to share-
holders of record on September 13, 2007, $0.125 per share of which
were paid on July 3, 2007, to shareholders of record on June 14,
2007, and $0.04 of which were paid on April 2, 2007, to shareholders
of record on March 15, 2007.
Material Obligations Under Firm Contractual Arrangements
Less Than After
(In millions of dollars) 1 Year 1–3 Years 4–5 Years 5 Years Total
Long-term debt (1) – 1,235 2,508 4,751 8,494
Derivative instruments (2) – 168 137 (414) (109)
Capital leases and other 1 – – – 1
Operating leases 159 242 149 89 639
Player contracts 97 155 87 54 393
Purchase obligations (3) 465 555 189 64 1,273
Pension obligation (4) 64 – – – 64
Other long-term liabilities 4 81 43 56 184
Total 790 2,436 3,113 4,600 10,939
(1) Amounts reflect principal obligations due at maturity.
(2) Amounts reflect net disbursements only, upon maturity.
(3) Purchase obligations consist of agreements to purchase goods and services that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities to be
purchased, price provisions and timing of the transaction. In addition, we incur expenditures for other items that are volume-dependent.
(4) Represents expected contributions to our pension plans in 2009. Contributions for the year ended December 31, 2010 and beyond cannot be reasonably estimated as they will depend on future economic
conditions and may be impacted by future government legislation.
OFF-BALANCE SHEET ARRANGEMENTS
Guarantees
As a regular part of our business, we enter into agreements that
provide for indemnification and guarantees to counterparties
in transactions involving business sale and business combination
agreements, sales of services and purchases and development of
assets. Due to the nature of these indemnifications, we are unable
to make a reasonable estimate of the maximum potential amount
we could be required to pay counterparties. Historically, we have
not made any significant payment under these indemnifications or
guarantees. Refer to Note 15(e)(ii) to the 2008 Audited Consolidated
Financial Statements.
Derivative Instruments
As previously discussed, we use derivative instruments to manage
our exposure to interest rate and foreign currency risks. We do not
use derivative instruments for speculative purposes.
Operating Leases
We have entered into operating leases for the rental of prem-
ises, distribution facilities, equipment and microwave towers and
other contracts. The effect of terminating any one lease agree-
ment would not have an adverse effect on us as a whole. Refer to
“Contractual Obligations” above and Note 23 to the 2008 Audited
Consolidated Financial Statements.
In May 2007, the Board approved an increase in the annual
dividend from $0.16 to $0.50 per share effective with the next
quarterly dividend.
During 2006, the Board declared dividends aggregating $0.0775
per share on each of the outstanding Class B Non-Voting shares
and Class A Voting shares, $0.0375 of which were paid on July 4,
2006 to shareholders of record on June 14, 2006, and $0.04 of
which were paid on January 2, 2007, to shareholders of record on
December 20, 2006.
In October 2006, our Board declared a 113% increase to the dividend
paid for each of the outstanding Class B Non-Voting shares and
Class A Voting shares. Accordingly, the annual dividend per share
increased from $0.075 per share to $0.16 per share, on a post-split
basis. In addition, the Board modified our dividend distribution
policy to make dividend distributions on a quarterly basis instead
of semi-annually. The first such distribution was made on January 2,
2007, to shareholders of record on December 20, 2006.
COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Contractual Obligations
Our material obligations under firm contractual arrangements are
summarized below at December 31, 2008. See also Notes 14, 15 and
23 to the 2008 Audited Consolidated Financial Statements.