Rogers 2009 Annual Report Download - page 122

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126 ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
$16 million) to other comprehensive income, net of income taxes
of $16 million (2008 – $6 million) to reflect the current period
increase in the funded status differences.
(G) INCOME TAXES:
Included in the caption “Income taxes” is the tax effect of various
adjustments where appropriate.
United States GAAP requires the valuation allowance to be allocated
on a pro rata basis between current and non-current future tax
assets for the relevant tax jurisdiction. This GAAP difference would
result in a decrease in current future tax assets under United
States GAAP of $4 million and a decrease in non-current future tax
liabilities of the same amount.
(H) INSTALLATION REVENUES AND COSTS, NET:
For Canadian GAAP purposes, cable installation revenues for both
new connects and re-connects are deferred and amortized over the
customer relationship period. For United States GAAP purposes,
installation revenues are immediately recognized in income to
the extent of direct selling costs, with any excess deferred and
amortized over the customer relationship period.
(I) CONSOLIDATED STATEMENTS OF CASH FLOWS:
(i) Canadian GAAP permits the disclosure of a subtotal of the
amount of funds provided by operations before changes in
non-cash operating working capital items in the consolidated
statements of cash flows. United States GAAP does not permit
this subtotal to be included.
(ii) Canadian GAAP permits bank advances to be included in the
determination of cash and cash equivalents in the consolidated
statements of cash flows. United States GAAP requires that
bank advances be reported as financing cash flows. As a result,
under United States GAAP, the total increase in cash and cash
equivalents in 2009 in the amount of $402 million reflected
in the consolidated statements of cash flows would be $383
million and cash used by financing activities would increase by
$19 million. The total increase in cash and cash equivalents in
2008 in the amount of $42 million reflected in the consolidated
statements of cash flows would be nil and cash provided by
financing activities would increase by $42 million.
(J) OTHER DISCLOSURES:
United States GAAP requires the Company to disclose accrued
liabilities, which is not required under Canadian GAAP. Accrued
liabilities included in accounts payable and accrued liabilities as at
December 31, 2009, were $1,843 million (2008 – $1,712 million). At
December 31, 2009, accrued liabilities in respect of PP&E totalled
$108 million (2008 – $130 million), accrued interest payable totalled
$144 million (2008 – $142 million), accrued liabilities related to payroll
totalled $337 million (2008 – $388 million), and CRTC commitments
totalled $10 million (2008 – $64 million).
(K) PENSIONS:
The following summarizes the additional disclosures required and
different pension-related amounts recognized or disclosed in the
Company’s accounts under United States GAAP:
2009 2008
Current service cost (employer portion) $ 16 $ 27
Interest cost 41 40
Expected return on plan assets (39) (43)
Settlement of pension obligations 30 –
Amortization:
Transitional asset (6) (10)
Realized gains included in income 22
Net actuarial loss 45
Net periodic pension cost under United States GAAP $ 48 $ 21
Accrued benefit asset under Canadian GAAP $ 134 $ 62
One-time adjustment for change in measurement period (6) (6)
Net periodic pension cost difference 3–
Accumulated other comprehensive loss under United States GAAP, on a pre-tax basis (159) (101)
Net amount recognized in the consolidated balance sheets under United States GAAP $ (28) $ (45)
In addition to the amounts disclosed above, under United States GAAP,
the net amount recognized in the consolidated balance sheets related
to the Company’s supplemental unfunded pension benefits for certain
executives was $32 million (2008 – $27 million). The total accumulated
other comprehensive loss associated with the supplemental plan
amounts to $3 million (2008 – nil), on a pre-tax basis.