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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company has contributed certain assets to joint ventures (note
24(c)). Certain investments in private companies are carried at a
nominal amount, as the fair market value is not determinable.
The following presents the summarized financial information of the
Company’s portion of joint ventures that are recorded by the
Company as investments accounted for using the equity method:
December 31,
2011 December 31,
2010 January 1,
2010
Statements of financial
position:
Current assets $12 $12 $13
Non-current assets 219 223 183
Current liabilities 768
Non-current liabilities 52 54 16
Net assets 172 175 172
December 31,
2011 December 31,
2010
Statements of comprehensive income:
Revenues $68$68
Expenses 62 61
There are no contingent liabilities or capital commitments relating to
the Company’s joint venture interests or relating to the joint ventures
themselves. The financial statements of the joint ventures and
associates are prepared for the same reporting period as the
Company. When necessary, adjustments are made to conform the
accounting policies in line with those of the Company.
On December 9, 2011, the Company announced that it, along with
BCE Inc., is jointly acquiring a net 75 percent equity interest in Maple
Leaf Sports & Entertainment Ltd. (“MLSE”) from the Ontario Teachers’
Pension Plan. MLSE is one of Canada’s largest sports and
entertainment companies and owns and operates, among other
things, the Air Canada Centre, the NHL’s Toronto Maple Leafs, the
NBA’s Toronto Raptors, the MLS’s Toronto FC and the AHL’s Toronto
Marlies. The Company’s net cash commitment, following a planned
leveraged recapitalization of MLSE, will total approximately
$533 million, representing a 37.5% equity interest in MLSE. The
transaction is expected to close in mid 2012. The timing and
completion of the transaction is subject to regulatory and league
approvals, customary closing conditions and termination rights.
15. OTHER LONG-TERM ASSETS:
December 31,
2011 December 31,
2010 January 1,
2010
Deferred pension asset (note
20) $33 $26 $13
Indefeasible right of use
agreements 25 27 29
Long-term receivables 16 47 23
Cash surrender value of life
insurance 15 13 11
Deferred installation costs 12 14 16
Deferred compensation 10 10 12
Other 23 10 9
$ 134 $ 147 $ 113
Amortization of certain long-term assets for the year
ended December 31, 2011 amounted to $5 million (2010 – $1 million).
Accumulated amortization as at December 31, 2011, amounted to
$11 million (December 31, 2010 – $6 million; January 1, 2010 – $5 million).
16. PROVISIONS:
Details of provisions are as follows:
Decommissioning
and restoration
obligations Onerous
contracts Other Total
January 1, 2010 $ 18 $ 29 $ 25 $ 72
Additions – 8 24 32
Adjustment to existing
provisions – 9 (1) 8
Amounts used (2) (11) (12) (25)
Unused amounts
reversed – – (4) (4)
December 31, 2010 16 35 32 83
Additions 4 2 8 14
Adjustment to existing
provisions 6 – – 6
Amounts used – (13) (17) (30)
December 31, 2011 $ 26 $ 24 $ 23 $ 73
Decommissioning
and restoration
obligations Onerous
contracts Other Total
Current $ 1 $ 11 $ 2 $ 14
Long-term 17 18 23 58
January 1, 2010 18 29 25 72
Current $ 2 $ 9 $ 10 $ 21
Long-term 14 26 22 62
December 31, 2010 16 35 32 83
Current 6 23 6 35
Long-term 20 1 17 38
December 31, 2011 $ 26 $ 24 $ 23 $ 73
In the course of the Company’s activities, a number of sites and other
PP&E assets are utilized which are expected to have costs associated
with exiting and ceasing their use. The associated decommissioning
and restoration obligation cash outflows are generally expected to
occur at the dates of exit of the assets to which they relate, which are
long-term in nature. The extent of restoration work that will be
ultimately be required for these sites is uncertain.
The provisions for onerous contracts relate to contracts that have
costs to fulfill in excess of the economic benefits to be obtained.
These include non-cancellable contracts, which are expected to be
completed within two years.
The other provisions include product guarantee provisions and legal
provisions.
2011 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 109