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18 ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
This Management’s Discussion and Analysis (“MD&A”) should be
read in conjunction with our 2009 Audited Consolidated Financial
Statements and Notes thereto. The financial information presented
herein has been prepared on the basis of Canadian generally accepted
accounting principles (“GAAP”) and is expressed in Canadian dollars,
unless otherwise stated. Please refer to Note 25 to the 2009 Audited
Consolidated Financial Statements for a summary of differences
between Canadian and United States (“U.S.”) GAAP. This MD&A,
which is current as of February 17, 2010, is organized into six sections.
In this MD&A, the terms “we”, “us”, “our”, “Rogers” and “the
Company” refer to Rogers Communications Inc. and our subsidiaries,
which were reported in the following segments for the year ended
December 31, 2009:
• “Wireless”, which refers to our wireless communications
operations, including Rogers Wireless Partnership (“RWP”) and
Fido Solutions Inc. (“Fido”);
• “Cable”,whichreferstoourcablecommunicationsoperations,
including Rogers Cable Communications Inc. (“RCCI”) and its
subsidiary, Rogers Cable Partnership; and
• “Media”,whichreferstoourwholly-ownedsubsidiaryRogers
Media Inc. and its subsidiaries, including Rogers Broadcasting,
which owns a group of 54 radio stations, the Citytv televi-
sion network, the Rogers Sportsnet television network, The
Shopping Channel, the OMNI television stations, and Canadian
specialty channels including The Biography Channel Canada,
G4TechTV and Outdoor Life Network; Rogers Publishing, which
publishes approximately 70 magazines and trade journals; and
Rogers Sports Entertainment, which owns the Toronto Blue Jays
Baseball Club (“Blue Jays”) and Rogers Centre. Media also holds
ownership interests in entities involved in specialty television
content, television production and broadcast sales.
“RCI” refers to the legal entity Rogers Communications Inc.
excluding our subsidiaries.
Substantially all of our operations are in Canada.
Throughout this MD&A, all percentage changes are calculated
using numbers rounded to the decimal to which they appear. Please
note that the charts, graphs and diagrams that follow have been
included for ease of reference and illustrative purposes only and do
not form part of management’s discussion and analysis.
1CORPORATE OVERVIEW 2SEGMENT REVIEW AND
RECONCILIATION TO NET INCOME 3CONSOLIDATED LIQUIDITY
AND FINANCING
19 Our Business
20 Our Strategy
20 Acquisitions
20 Consolidated Financial and
Operating Results
23 2010 Financial and
Operating Guidance
24 Wireless
31 Cable
40 Media
42 Reconciliation of Net Income
to Operating Profit
45 Liquidity and Capital Resources
48 Interest Rate and Foreign
Exchange Management
50 Outstanding Common Share Data
50 Dividends and Other Payments
on RCI Equity Securities
51 Commitments and Other
Contractual Obligations
52 Off-Balance Sheet Arrangements
52 Government Regulation and
Regulatory Developments
55 Cable Regulation and
Regulatory Developments
57 Media Regulation and
Regulatory Developments
57 Competition in our Businesses
59 Risks and Uncertainties Affecting
our Businesses
65 Key Performance Indicators and
Non-GAAP Measures
66 Critical Accounting Policies
67 Critical Accounting Estimates
70 New Accounting Standards
70 Recent Canadian Accounting
Pronouncements
74 U.S. GAAP Differences
74 Related Party Transactions
75 Five-Year Summary of
Consolidated Financial Results
76 Summary of Seasonality and
Quarterly Results
78 Summary Financial Results of
Long-Term Debt Guarantors
79 Controls and Procedures
80 Supplementary Information:
Non-GAAP Calculations
54 OPERATING ENVIRONMENT ACCOU NT I NG POL IC I ES AND
NON-GAAP MEASURES 6ADDI TIO NA L FINA NCI AL
INFORMATION