Rogers 2011 Annual Report Download - page 103

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
liabilities, is to reclassify the current deferred tax asset of $220 million
at January 1, 2010 and $159 million at December 31, 2010 to
non-current and reclassify $87 million at January 1, 2010 and
$52 million at December 31, 2010 from deferred tax liability to
deferred tax asset.
IFRS requires that subsequent changes to the tax effect of items
recorded in OCI in previous years be also recorded in OCI, where
previously this was recorded in the consolidated statements of
income. The impact of this difference on transition is to reduce equity
reserves by $16 million and increase opening retained earnings by
$16 million.
In addition, the Company reclassified an amount of $61 million at
January 1, 2010 and $138 million at December 31, 2010 from income
tax payable to deferred tax liability as compared to amounts
previously reported under Canadian GAAP relating to its investment
in its wholly-owned operating partnership.
(n) The above changes decreased (increased) shareholders’ equity (each net of related tax) as follows:
Note January 1, 2010 December 31, 2010
Employee benefits (b) $ 130 $ 185
Stock-based compensation (c) 11 18
Customer loyalty programs (d) (3) (1)
Property, plant and equipment (e) 8 7
Joint ventures (f) (5) (2)
Financial instruments–transaction costs (g) (42) (40)
Provisions (h) 19 27
Financial instruments–hedge accounting (j) (6) (1)
Impairment of assets (l) – 4
Income tax impact transferred from equity reserves (16) (16)
Adjustment to retained earnings 96 181
Equity reserves–available-for-sale investments (i) (1) 1
Equity reserves–hedging (j) 6 1
Income tax impact transferred to retained earnings 16 16
Adjustment to shareholders’ equity $ 117 $ 199
4. SEGMENTED INFORMATION:
OPERATING SEGMENTS:
Management reviews the operations of the Company by business
segments. Effective January 1, 2011, the results of the business
segments were reclassified to reflect the change in strategy as
described in note 2(b). These business segments are the primary
operating segments and are described as follows:
(a) Wireless–This segment provides retail and business voice and
data wireless communications services.
(b) Cable–This segment provides cable television, cable telephony
and high speed Internet access and telephony products primarily
to residential customers. The Cable business consists of the
following three sub segments:
(i) Cable Operations segment which provides cable services,
high speed Internet service and Rogers Home Phone;
(ii) RBS segment offers local and long-distance telephone,
enhanced voice and data services, and IP access to medium
and large Canadian businesses and governments; and
(iii) Video segment operates a DVD and video game sale and
rental business.
(c) Media–This segment operates the Company’s radio and
television broadcasting operations, televised shopping,
consumer, trade and professional publications, sports
entertainment, and digital media properties.
The accounting policies of the segments are the same as those
described in the significant accounting policies note 2 to the
Company’s consolidated financial statements. The Company discloses
segment operating results based on income before integration,
restructuring and acquisition costs, stock-based compensation
expense, loss on settlement of pension obligations, other items,
depreciation and amortization, impairment of assets, finance costs,
other income (loss), share of income of associates and joint ventures
accounted for using the equity method, and income taxes, consistent
with internal management reporting. This measure of segment
operating results differs from operating income in the consolidated
statements of income. All of the Company’s reportable segments are
substantially in Canada.
2011 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 99