Rogers 2008 Annual Report Download - page 98

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94 ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(A) OPERATING SEGMENTS:
The accounting policies of the segments are the same as those
described in the significant accounting policies (note 2). The
Company discloses segment operating results based on income
before stock option plan amendment, integration and restructuring,
stock-based compensation expense (recovery), adjustment for CRTC
Part II fees decision, contract renegotiation fee, depreciation and
amortization, impairment losses on goodwill, intangible assets and
other long-term assets, interest on long-term debt, debt issuance
costs, loss on repayment of long-term debt, foreign exchange gain
(loss), change in fair value of derivative instruments, other income
(expense) and income taxes, consistent with internal management
reporting. This measure of segment operating results differs from
operating income in the consolidated statements of income. All of
the Company’s reportable segments are substantially in Canada.
3. SEGMENTED INFORMATION
2008 2007
Corporate Corporate
items and Consolidated items and Consolidated
Wireless Cable Media eliminations totals Wireless Cable Media eliminations totals
Operating revenue $ 6,335 $ 3,809 $ 1,496 $ (305) $ 11,335 $ 5,503 $ 3,558 $ 1,317 $ (255) $ 10,123
Cost of sales 1,005 197 178 (77) 1,303 703 186 173 (101) 961
Sales and marketing 691 466 269 (92) 1,334 653 519 226 (76) 1,322
Operating, general and
administrative* 1,833 1,913 907 (15) 4,638 1,558 1,837 742 – 4,137
2,806 1,233 142 (121) 4,060 2,589 1,016 176 (78) 3,703
Stock option plan amendment – – – – – 46 113 84 209 452
Integration and restructuring 14 20 11 6 51 – 38 – – 38
Stock-based compensation
expense (recovery)* (5) (32) (17) (46) (100) 11 11 10 30 62
Adjustment for CRTC Part II
fees decision* – 25 6 – 31 – – – – –
Contract renegotiation fee* – – – – – – 52 – – 52
2,797 1,220 142 (81) 4,078 2,532 802 82 (317) 3,099
Depreciation and amortization 588 791 76 305 1,760 560 737 52 254 1,603
Impairment losses on goodwill,
intangible assets and other
long-term assets – – 294 – 294 – – – – –
Operating income (loss) $ 2,209 $ 429 $ (228) $ (386) 2,024 $ 1,972 $ 65 $ 30 $ (571) 1,496
Interest on long-term debt (575) (579)
Debt issuance costs (16) –
Loss on repayment of
long-term debt – (47)
Foreign exchange gain (loss) (99) 54
Change in fair value
of derivative instruments 64 (34)
Other income (expense), net 28 (4)
Income before income taxes $ 1,426 $ 886
Additions to PP&E $ 929 $ 886 $ 81 $ 125 $ 2,021 $ 822 $ 814 $ 77 $ 83 $ 1,796
Goodwill $ 1,140 $ 982 $ 902 $ – $ 3,024 $ 1,140 $ 926 $ 961 $ – $ 3,027
Total assets $ 8,357 $ 5,153 $ 1,941 $ 1,642 $ 17,093 $ 6,747 $ 5,211 $ 2,042 $ 1,325 $ 15,325
*Included with operating, general and administrative operating expenses in consolidated statements of income.