Rogers 2010 Annual Report Download - page 115

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT 119
(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:
2010 2009
Current service cost – employer portion $ 28 $ 16
Interest cost 37 41
Expected return on plan assets (40) (39)
Settlement of pension obligations –30
Amortization:
Transitional asset –(6)
Realized gains included in income 22
Net actuarial loss 94
Net periodic pension cost under United States GAAP $ 36 $ 48
Accrued benefit asset under Canadian GAAP $ 163 $ 134
One-time adjustment for change in measurement period (6) (6)
Cumulative periodic pension cost difference (2) 3
Accumulated other comprehensive loss under United States GAAP, on a pre-tax basis (231) (159)
Net amount recognized in the consolidated balance sheets under United States GAAP $ (76) $ (28)
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 $36 million (2009 – $32 million). The total accumulated other
comprehensive loss associated with the supplemental plan amounts to $5
million (2009 – $3 million), on a pre-tax basis.
(L) RECENT UNITED STATES ACCOUNTING PRONOUNCEMENTS:
In September 2009, the Financial Accounting Standards Board (“FASB”)
issued Accounting Standards Update 2009-13, Revenue Arrangements
with Multiple Deliverables (Topic 605), which addresses some aspects of
the accounting by a vendor for arrangements under which it will perform
multiple revenue-generating activities. This update is effective for the
Company’s interim and annual consolidated financial statements
commencing on January 1, 2011, with earlier adoption permitted as of the
beginning of a fiscal year. The Company is assessing the impact of the new
standard on its consolidated financial statements.
In February 2010, the FASB issued Update No. 2010-09, Subsequent Events
(Topic 855). This update removes the requirement for Securities Exchange
Commission filers to disclose the date financial statements are available to
be issued. It required the disclosure of the date through which an entity
has evaluated subsequent events to be the date the financial statements
were issued. The Company recognized the effects of events or transactions
that occur after the balance sheet date but before financial statements are
issued (“subsequent events”) if there is evidence that conditions related to
the subsequent event existed at the date of the balance sheet, including
the impact of such events on management’s estimates and assumptions
used in preparing the financial statements. Other significant subsequent
events that are not recognized in the financial statements are disclosed in
the notes to the consolidated financial statements.
(A) In February 2011, the TSX accepted a notice filed by the Company
of its intention to renew its prior NCIB for a further one-year period.
The TSX notice provides that the Company may, during the 12-month
period commencing February 22, 2011 and ending February21, 2012,
purchase on the TSX the lesser of 39.8 million Class B Non-Voting shares,
representing approximately 9% of the issued and outstanding Class B
Non-Voting shares, and that number of Class B Non-Voting shares that
can be purchased under the NCIB for an aggregate purchase price of
$1,500 million. The actual number of Class B Non-Voting shares
purchased, if any, and the timing of such purchases will be determined
by the Company considering market conditions, share prices, its cash
position, and other factors.
On February 22, 2011, the Company repurchased for cancellation,
pursuant to a private placement agreement between the Company and
an arm’s-length third party, 1.4 million Class B Non-Voting shares for an
aggregate price of $45 million. The transaction was made under an
issuer bid exemption order issued by the Ontario Securities Commission
and is included in calculating the number of Class B Non-Voting shares
that the Company may purchase pursuant to the NCIB.
(B) In February 2011, the Company’s Board adopted a dividend policy
which increases the annualized dividend rate from $1.28 to $1.42 per
Class A Voting and Class B Non-Voting share effective immediately to be
paid in quarterly amounts of $0.355 per share. Such quarterly dividends
are only payable as and when declared by the Board and there is no
entitlement to any dividends prior thereto.
In addition, on February 15, 2011, the Board declared a quarterly
dividend totalling $0.355 per share on each of its outstanding Class A
Voting and Class B Non-Voting shares, such dividend to be paid on
April1, 2011, to shareholders of record on March 18, 2011, and is the
first quarterly dividend to reflect the newly increased $1.42 per share
annual dividend level.
(C) On January 4, 2011, the Company closed its agreement to purchase
100% interest in Atria for cash consideration of $425 million (note 4(b)
(i)) and on January 31, 2011, the Company closed its agreements to
purchase the assets of BOB-FM and BOUNCE (note 4(b)(ii)).
(D) On February 18, 2011, the Company announced that it had issued
notices to redeem on March 21,2011 all of the US$350 million principal
amount of 7.875% Senior Notes due 2012 and all of the US$470 million
principal amount of 7.25% Senior Notes due 2012, in each case at the
applicable redemption price plus accrued interest to the date of
redemption. In each case, the respective redemption price will include a
make whole premium based on the present values of the remaining
scheduled payments as prescribed in the applicable indenture.
26. SUBSEQUENT EVENTS: