Rogers 2011 Annual Report Download - page 108

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
During 2011, the Company incurred $22 million (2010 – $5 million) of
restructuring expenses and other exit costs related to the closure of
underperforming retail store locations, primarily located in the
province of Ontario, and other exit costs.
During 2011, the Company incurred $4 million (2010 – $5 million) of
acquisition related transaction costs for business combinations and
integration expenses related to previously acquired businesses and
related restructuring.
During 2011, the Company incurred $nil (2010 – $9 million) of
restructuring expenses resulting from the outsourcing of certain
information technology functions.
The additions to the liabilities related to the integration, restructuring
and acquisition activities and payments made against such liabilities
during 2011 are as follows:
As at
December 31,
2010 Additions Payments
As at
December 31,
2011
Severances resulting from the targeted restructuring of the Company’s employee base $ 47 $ 44 $ (45) $46
Video store closures and other exit costs 4 22 (11) 15
Acquisition transaction costs and integration of acquired businesses 3 4 (5) 2
$ 54 $ 70 $ (61) $63
The remaining liability of $63 million as at December 31, 2011, which
is included in accounts payable and accrued liabilities, is expected to
be paid over the next two years.
9. INCOME TAXES:
(a) Income tax expense (benefit):
The components of income tax expense (benefit) for the years ended
December 31, 2011 and 2010 were as follows:
December 31,
2011 December 31, 2010
Current income tax expense (benefit) $ (146) $ 245
Deferred tax expense (benefit)
Origination and reversal of temporary
differences 752 426
Effect of tax rate changes (59) (54)
Recognition of previously unrecognized
deferred tax assets (12) (5)
Total deferred tax expense $681$ 367
Income tax expense $ 535 $ 612
Income tax expense varies from the amounts that would be computed
by applying the statutory income tax rate to income before income
taxes for the following reasons:
December 31,
2011 December 31, 2010
Statutory income tax rate 28.0%30.5%
Computed income tax expense $587$ 645
Increase (decrease) in income taxes
resulting from:
Effect of tax rate changes (59) (69)
Recognition of previously unrecognized
deferred tax assets (12) (5)
Stock-based compensation 440
Other items 15 1
Income tax expense $ 535 $ 612
Due to Canadian federal and provincial enacted corporate income tax
rate changes, the statutory income tax rate for the Company
decreased from 30.5% in 2010 to 28.0% in 2011.
(b) Deferred tax assets and liabilities:
The net deferred tax liability consists of the following:
December 31,
2011 December 31, 2010 January 1, 2010
Deferred tax assets $30 $52 $84
Deferred tax liabilities (1,390) (655) (291)
Net deferred tax liability $ (1,360) $ (603) $ (207)
104 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT