Rogers 2009 Annual Report Download - page 107

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ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT 111
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A portion of the Company’s accounts receivable and accounts
payable and accrued liabilities is denominated in U.S. dollars;
however, due to their short-term nature, there is no significant
market risk arising from fluctuations in foreign exchange rates.
All of the Company’s Derivatives are unsecured obligations of RCI.
In addition, RCCI and RWP have provided unsecured guarantees for
all of the Company’s Derivatives (notes 14(d) and 15(b)).
(E) FINANCIAL INSTRUMENTS:
(i) Classification and fair values of financial instruments:
The Company has classified its financial instruments as follows:
The Company did not have any non-derivative held-to-maturity
financial assets during the years ended December 31, 2009 and 2008.
(ii) Guarantees:
In the normal course of business, the Company has entered into
agreements that contain features that meet the definition of a
guarantee under GAAP. A description of the major types of such
agreements is provided below:
(a) Business sale and business combination agreements:
As part of transactions involving business dispositions, sales
of assets or other business combinations, the Company
may be required to pay counterparties for costs and losses
incurred as a result of breaches of representations and
warranties, intellectual property right infringement, loss
or damages to property, environmental liabilities, changes
in laws and regulations (including tax legislation), litigation
against the counterparties, contingent liabilities of a
disposed business or reassessments of previous tax filings
of the corporation that carries on the business.
(b) Sales of services:
As part of transactions involving sales of services, the
Company may be required to pay counterparties for costs
and losses incurred as a result of breaches of representations
and warranties, changes in laws and regulations (including
tax legislation) or litigation against the counterparties.
(c) Purchases and development of assets:
As part of transactions involving purchases and
development of assets, the Company may be required
to pay counterparties for costs and losses incurred as a
result of breaches of representations and warranties, loss
or damages to property, changes in laws and regulations
(including tax legislation) or litigation against the
counterparties.
(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, 2009
or 2008. Historically, the Company has not made any significant
payments under these indemnifications or guarantees.
2009 2008
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Cash and cash equivalents, held-for-trading, measured at fair value $ 383 $ 383 $ – $ –
Financial assets, available-for-sale, measured at fair value:
Investments 496 496 319 319
Loans and receivables, measured at amortized cost:
Accounts receivable 1,310 1,310 1,403 1,403
$ 2,189 $ 2,189 $ 1,722 $ 1,722
2009 2008
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Financial liabilities, measured at amortized cost:
Bank advances, arising from outstanding cheques $ – $ – $ 19 $ 19
Accounts payable and accrued liabilities 2,383 2,383 2,412 2,412
Long-term debt 8,464 9,315 8,507 8,700
Other long-term liabilities 133 133 184 184
Financial liabilities (assets), held-for-trading:
Derivatives not accounted for as hedges (5) (5) (69) (69)
Derivatives accounted for as cash flow hedges, net 1,007 1,007 223 223
$ 11,982 $ 12,833 $ 11,276 $ 11,469