Rogers 2010 Annual Report Download - page 110

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
114 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT
(C) The Company entered into certain transactions with the
controlling shareholder of the Company and companies controlled by
the controlling shareholder of the Company. These transactions are
subject to formal agreements approved by the Audit Committee. Total
amounts received from these related parties are as follows:
These transactions are recorded at the exchange amount, being the
amount agreed to by the related parties, and are reviewed by the Audit
Committee.
In January 2010, with the approval of the Board, the Company closed an
agreement to sell the Company’s aircraft to a private Rogers’ family
holding company for cash proceeds of $19 million (U.S.$18 million). The
terms of the sale were negotiated by a Special Committee of the Board,
entirely comprised of independent directors. The Special Committee
was advised by several independent parties knowledgeable in aircraft
valuations to ensure that the sale price was within a range that was
reflective of current market value.
2010 2009
Recoveries for use of aircraft and other administrative services $ – $ (1)
The Company entered into the following related party transactions:
(A) The Company has entered into certain transactions in the normal
course of business with certain broadcasters in which the Company has
an equity interest. The amounts paid to these broadcasters are as
follows:
(B) The Company has entered into certain transactions with
companies, the partners or senior officers of which are directors of the
Company. Total amounts paid by the Company to these related parties,
directly or indirectly, are as follows:
22. RELATED PARTY TRANSACTIONS:
2010 2009
Access fees paid to broadcasters accounted for by the equity method $ 16 $ 16
2010 2009
Legal services, printing and commissions paid on premiums for insurance coverage $ 39 $ 39
(A) The Company is committed, under the terms of its licences issued
by Industry Canada, to spend 2% of certain wireless revenues earned in
each year on research and development activities over the license period.
(B) The Company enters into agreements with suppliers to provide
services and products that include minimum spend commitments. The
Company has agreements with certain telecommunications companies
that guarantee the long-term supply of network facilities and
agreements relating to the operations and maintenance of the network.
(C) In the ordinary course of business and in addition to the amounts
recorded on the consolidated balance sheets and disclosed elsewhere
in the notes, the Company has entered into agreements to acquire
broadcasting rights to programs and films over the next ten years at a
total cost of approximately $839 million. In addition, the Company has
commitments to pay access fees over the next year totalling
approximately $15 million.
(D) Pursuant to CRTC regulation, the Company is required to make
contributions to the Canadian Television Fund (“CTF”), which is a cable
industry fund designed to foster the production of Canadian television
programming. Contributions to the CTF are based on a formula,
including gross broadcast revenues and the number of subscribers. The
Company may elect to spend a portion of the above amount for local
television programming and may also elect to contribute a portion to
another CRTC-approved independent production fund. The Company
estimates that its total contribution for 2011 will amount to
approximately $74 million.
The CRTC collects two different types of fees from broadcast licencees
which are known as Part I and Part II fees. Each broadcasting licencee
pays a proportionate share of the fees based on its percentage of
revenue share across all broadcasting licencees. The Company estimates
that licence fees for 2011 will amount to approximately $28 million.
23. COMMITMENTS: