Rogers 2010 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2010 Rogers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

22 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT
Summarized Consolidated Financial Results
Years ended December 31, (In millions of dollars, except per share amounts) 2010 2009 %Chg
Operating revenue
Wireless $ 6,968 $ 6,654 5
Cable
Cable Operations 3,185 3,074 4
RBS 560 503 11
Rogers Retail 355 399 (11)
Corporate items and eliminations (48) (28) 71
4,052 3,948 3
Media 1,501 1,407 7
Corporate items and eliminations (335) (278) 21
Total 12,186 11,731 4
Adjusted operating profit(1)
Wireless 3,167 3,042 4
Cable
Cable Operations 1,424 1,298 10
RBS 40 35 14
Rogers Retail (27) (9) 200
1,437 1,324 9
Media 147 119 24
Corporate items and eliminations (98) (97) 1
Adjusted operating profit(1) 4,653 4,388 6
Stock-based compensation (expense) recovery(3) (47) 33 n/m
Settlement of pension obligations(4) – (30) n/m
Integration and restructuring expenses(5) (40) (117) (66)
Other items, net (6) (14) –n/m
Contract termination fees(7) –(19) n/m
Adjustment for CRTC Part II fees decision(8) – 61 n/m
Operating profit(1) 4,552 4,316 5
Other income and expense, net(9) 3,024 2,838 7
Net income $ 1,528 $ 1,478 3
Basic and diluted net income per share $ 2.65 $ 2.38 11
As adjusted:(2)
Net income $ 1,707 $ 1,556 10
Basic and diluted net income per share $ 2.96 $ 2.51 18
Additions to property, plant and equipment (“PP&E”)(1)
Wireless $ 937 $ 865 8
Cable
Cable Operations 611 642 (5)
RBS 38 37 3
Rogers Retail 13 14 (7)
662 693 (4)
Media 46 62 (26)
Corporate 194 235 (17)
Total $ 1,839 $ 1,855 (1)
(1) As defined. See the sections entitled “Supplementary Information: Non-GAAP Calculations” and “Key Performance Indicators and Non-GAAP Measures”. Operating profit should not be considered as a substitute or
alternative for operating income or net income, in each case determined in accordance with Canadian GAAP. See the section entitled “Reconciliation of Net Income to Operating Profit and Adjusted Operating
Profit for the Period” for a reconciliation of operating profit and adjusted operating profit to operating income and net income under Canadian GAAP and the section entitled “Key Performance Indicators and
Non-GAAP Measures”.
(2) For details on the determination of the ‘as adjusted’ amounts, which are non-GAAP measures, see the sections entitled “Supplementary Information: Non-GAAP Calculations” and “Key Performance Indicators
and Non-GAAP Measures”. The ‘as adjusted’ amounts presented above are reviewed regularly by management and our Board of Directors in assessing our performance and in making decisions regarding the
ongoing operations of the business and the ability to generate cash flows. The ‘as adjusted’ amounts exclude (i) stock-based compensation (recovery) expense; (ii) integration and restructuring expenses; (iii)
contract termination fees; (iv) an adjustment for CRTC Part II fees related to prior periods; (v) settlement of pension obligations; (vi) other items (net); and (vii) in respect of net income and net income per share,
debt issuance costs, loss on repayment of long-term debt, impairment losses on goodwill, intangible assets and other long-term assets, and the related income tax impact of the above amounts.
(3) See the section entitled “Stock-based Compensation”.
(4) Relates to the settlement of pension obligations for all employees in the pension plans who had retired as of January 1, 2009 as a result of annuity purchases by the Company’s pension plans.
(5) For the year ended December 31, 2010, costs incurred relate to i) severances resulting from the targeted restructuring of our employee base; ii) restructuring expenses related to the outsourcing of certain
information technology functions; iii) acquisition transaction costs incurred and the integration of acquired businesses; and iv) the closure of certain Rogers Retail stores. For the year ended December 31,2009,
costs incurred relate to i) severances resulting from the targeted restructuring of our employee base to combine the Cable and Wireless businesses into a communications organization and to improve our cost
structure in light of the current economic and competitive conditions; ii) severances and restructuring expenses related to the outsourcing of certain information technology functions; iii) the integration of
acquired businesses; and iv) the closure of certain Rogers Retail stores.
(6) Relates to the resolution of obligations and accruals relating to prior periods.
(7) Relates to the termination and release of certain Blue Jays players from the remaining term of their contracts.
(8) Relates to an adjustment for CRTC Part II fees related to prior periods. See the section entitled “Government Regulation and Regulatory Developments”.
(9) See the section entitled “Reconciliation of Net Income to Operating Profit and Adjusted Operating Profit for the Period”.
n/m: not meaningful.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS