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18 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT
1CORPORATE OVERVIEW
19 Our Business
19 Our Strategy
20 Consolidated Financial and
Operating Results
23 2011 Financial and
Operating Guidance
4OPERATING ENVIRONMENT
52 Government Regulation and
Regulatory Developments
54 Wireless Regulation and
Regulatory Developments
55 Cable Regulation and
Regulatory Developments
56 Media Regulation and
Regulatory Developments
56 Competition in our Businesses
57 Risks and Uncertainties
Affecting our Businesses
3
6
CONSOLIDATED LIQUIDITY
AND FINANCING
ADDITIONAL FINANCIAL
INFORMATION
46 Liquidity and Capital Resources
49 Interest Rate and Foreign
Exchange Management
50 Outstanding Common Share Data
51 Dividends on RCI Equity Securities
52 Commitments and Other
Contractual Obligations
52 Off-Balance Sheet Arrangements
72 Related Party Transactions
73 Five-Year Summary of
Consolidated Financial Results
74 Summary of Seasonality and
Quarterly Results
77 Summary of Financial Results of
Long-Term Debt Guarantors
77 Controls and Procedures
78 Supplementary Information:
Non-GAAP Calculations
2SEGMENT REVIEW AND
RECONCILIATION TO
NET INCOME
24 Wireless
30 Cable
40 Media
43 Reconciliation of Net Income
to Operating Profit
45 Additions to PP&E
5ACCOUNTING POLICIES AND
NON-GAAP MEASURES
62 Key Performance Indicators and
Non-GAAP Measures
63 Critical Accounting Policies
64 Critical Accounting Estimates
66 New Accounting Standards
66 Recent Canadian Accounting
Pronouncements
68 Changes in Accounting Policies
72 U.S. GAAP Differences
This Management’s Discussion and Analysis (“MD&A”) should be read
in conjunction with our 2010 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 2010 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28, 2011, 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,2010:
• “Wireless”,whichreferstoourwirelesscommunicationsoperations,
carried on by Rogers Communications Partnership (“RCP”), formerly
Rogers Wireless Partnership (“RWP”), and Fido Solutions Inc. (“Fido”);
• “Cable”, which refers to our cable communications operations,
carried on by Rogers Communications Partnership, formerly Rogers
Cable Communications Inc. (“RCCI”) and its subsidiary, Rogers Cable
Partnership; and
• “Media”,whichreferstoourwholly-ownedsubsidiaryRogersMedia
Inc. and its subsidiaries, including Rogers Broadcasting, which owns a
group of 55 radio stations, the Citytv television network, the Rogers
Sportsnet and Sportsnet ONE television networks, The Shopping
Channel, the OMNI television stations, and Canadian specialty
channels, including The Biography Channel (Canada), G4 Canada
and Outdoor Life Network; Rogers Publishing, which publishes
consumer and business 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.
On July 1, 2010, our shared services and substantially all of Cable and
Wireless operations were consolidated into Rogers Communications
Partnership. See the section entitled “Consolidated Liquidity and
Financing”.
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.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010