Rogers 2009 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2009 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 130

  • 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

110 ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Of the $10 million impact, $7 million was recorded in the
consolidated statements of income related to Derivatives not
accounted for as hedges and $3 million related to Derivatives
accounted for as hedges was recorded in other comprehensive
income.
At December 31, 2009, 93.7% of the Company’s U.S. dollar-
denominated long-term debt instruments were hedged against
fluctuations in foreign exchange rates for accounting purposes. At
December 31, 2009, details of the Derivatives net liability position
are as follows:
In 2009, $1 million (2008 – ($3) million) related to hedge ineffec-
tiveness was recognized as an increase (decrease) in net income.
The long-term portion above is comprised of a derivative
instruments liability of $1,004 million and a derivative instruments
asset of $78 million as at December 31, 2009.
At December 31, 2008, 87.4% of the Company’s U.S. dollar-
denominated long-term debt instruments were hedged against
fluctuations in foreign exchange rates for accounting purposes. At
December 31, 2008, details of the Derivatives net liability position
are as follows:
2009
U.S. $
notional
Exchange
rate
Cdn. $
notional
Unadjusted
mark-to-
market
value
on a
risk free
basis
Estimated
fair value,
being
carrying
amount on
a credit risk
adjusted
basis
Derivatives accounted for as cash flow hedges:
As assets $ 1,975 1.0252 $ 2,025 $ 84 $ 73
As liabilities 3,215 1.3337 4,288 (1,117) (1,080)
Net mark-to-market liability (1,033) (1,007)
Derivatives not accounted for as hedges:
As assets 350 1.0258 359 10 9
As liabilities 10 1.5370 15 (4) (4)
Net mark-to-market asset 6 5
Net mark-to-market liability $ (1,027) $ (1,002)
Less net current liability portion (76)
Net long-term liability portion $ (926)
2008
U.S. $
notional
Exchange
rate
Cdn. $
notional
Unadjusted
mark-to-
market
value
on a
risk free
basis
Estimated
fair value,
being
carrying
amount on
a credit risk
adjusted
basis
Derivatives accounted for as cash flow hedges:
As assets $ 1,975 1.0252 $ 2,025 $ 492 $ 435
As liabilities 3,215 1.3337 4,288 (712) (658)
Net mark-to-market liability (220) (223)
Derivatives not accounted for as hedges:
As assets 350 1.0258 359 79 72
As liabilities 10 1.5370 15 (3) (3)
Net mark-to-market asset 76 69
Net mark-to-market liability $ (144) $ (154)
Less net current liability portion (45)
Net long-term liability portion $ (109)
The long-term portion above is comprised of a derivative
instruments liability of $616 million and a derivative instruments
asset of $507 million as at December 31, 2008.
At December 31, 2009, all of the Company’s long-term debt was at
fixed interest rates.
U.S. $350 million of the Company’s U.S. dollar-denominated
long-term debt instruments are not hedged for accounting purposes
and, therefore, a one cent change in the Canadian dollar relative to
the U.S. dollar would have resulted in a $4 million change in the
carrying value of long-term debt at December 31, 2009. In addition,
this would have resulted in a $3 million change in net income, net of
income taxes of $1 million.