Rogers 2009 Annual Report Download - page 47

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ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT 51
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In February 2010, the Board
adopted a dividend policy
which increased the annual
dividend rate from $1.16 to $1.28
per Class A Voting and Class
B Non-Voting share effective
immediately to be paid in
quarterly amounts of $0.32 per
share. Such quarterly dividends
are only payable as and when
declared by our Board and
there is no entitlement to any
dividend prior thereto.
In addition, on February 17,
2010, the Board declared a
quarterly dividend totalling
$0.32 per share on each of its
outstanding Class B Non-Voting
shares and Class A Voting shares, such dividend to be paid on April
1, 2010, to shareholders of record on March 5, 2010, and is the first
quarterly dividend to reflect the newly increased $1.28 per share
annual dividend level.
In February 2009, the Board adopted a dividend policy which
increased the annual dividend rate from $1.00 to $1.16 per Class
A Voting and Class B Non-Voting share effective with the next
quarterly dividend.
In January 2008, the Board approved an increase in the annual
dividend from $0.50 to $1.00 per Class A Voting and Class B
Non-Voting share effective with the next quarterly dividend.
In May 2007, the Board approved an increase in the annual
dividend from $0.16 to $0.50 per share effective with the next
quarterly dividend.
COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Contractual Obligations
Our material obligations under firm contractual arrangements are
summarized below at December 31, 2009. See also Notes 14, 15 and
23 to the 2009 Audited Consolidated Financial Statements.
20092008
2007
2008
2007
2009
$1.16$1.00$0.50
ANNUALIZED DIVIDENDS
PER SHARE AT YEAR END
($)
CASH RETURNED TO SHAREHOLDERS
(In millions of dollars)
2009
Stock option buybacks: $63
Dividends: $704
$2,114
Share buybacks: $1,347
Material Obligations Under Firm Contractual Arrangements
(In millions of dollars) Less Than 1 Year 1-3 Years 4-5 Years After 5 Years Total
Long-term debt(1) – 2,012 1,524 4,922 8,458
Derivative instruments(2) – 503 282 69 854
Capital leases and other 1 – – – 1
Operating leases 156 225 143 78 602
Player contracts 91 62 54 11 218
Purchase obligations(3) 603 763 380 308 2,054
Pension obligation(4) 55 – – – 55
Other long-term liabilities – 71 20 42 133
Total 906 3,636 2,403 5,430 12,375
(1) Amounts reflect principal obligations due at maturity.
(2) Amounts reflect net disbursements due at maturity.
(3) Purchase obligations consist of agreements to purchase goods and services that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities to be
purchased, price provisions and timing of the transaction. In addition, we incur expenditures for other items that are volume-dependent.
(4) Represents expected contributions to our pension plans in 2010. Contributions for the year ended December 31, 2011 and beyond cannot be reasonably estimated as they will depend on future economic
conditions and may be impacted by future government legislation.