Rogers 2011 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2011 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 136

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2011
This Management’s Discussion and Analysis (“MD&A”) should be read
in conjunction with our 2011 Audited Consolidated Financial
Statements and Notes thereto. The financial information presented
herein has been prepared on the basis of International Financial
Reporting Standards (“IFRS”) and is expressed in Canadian dollars,
unless otherwise stated. This MD&A, which is current as of
February 21, 2012, is organized into six sections.
1CORPORATE OVERVIEW
21 Our Business
22 Our Strategy
22 Consolidated Financial and
Operating Results
25 2012 Financial Guidance
2SEGMENT REVIEW AND
RECONCILIATION TO NET INCOME
25 Wireless
31 Cable
41 Media
44 Corporate
45 Reconciliation of Net Income
to Operating Profit
3CONSOLIDATED
LIQUIDITY AND FINANCING
47 Liquidity and Capital Resources
50 Interest Rate and Foreign
Exchange Management
52 Outstanding Common Share Data
52 Dividends on RCI Equity Securities
53 Commitments and Other
Contractual Obligations
54 Off-Balance Sheet Arrangements
4OPERATING ENVIRONMENT
54 Government Regulation and
Regulatory Developments
55 Wireless Regulation and
Regulatory Developments
56 Cable Regulation and
Regulatory Developments
57 Media Regulation and
Regulatory Developments
58 Competition in our Businesses
59 Risks and Uncertainties
Affecting our Businesses
5ACCOUNTING POLICIES
AND NON-GAAP MEASURES
64 Key Performance Indicators and
Non-GAAP Measures
65 Critical Accounting Policies
66 Critical Accounting Estimates
68 New Accounting Standards
68 Recent Accounting
Pronouncements
6ADDITIONAL FINANCIAL
INFORMATION
70 Related Party Transactions
71 Five-Year Summary of
Consolidated Financial Results
72 Summary of Seasonality and
Quarterly Results
74 Summary of Financial Results of
Long-Term Debt Guarantors
74 Controls and Procedures
75 Supplementary Information:
Non-GAAP Calculations
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, 2011:
• “Wireless”, which refers to our wireless communications
operations, carried on by Rogers Communications Partnership
(“RCP”);
• “Cable”, which refers to our cable communications operations,
carried on by RCP; 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 Sportsnet, Sportsnet ONE, Sportsnet World television
network, The Shopping Channel, the OMNI television stations, and
Canadian specialty channels, including Outdoor Life Network, The
Biography Channel (Canada), FX (Canada), G4 Canada, and
CityNews Channel; Digital Media, which provides digital advertising
solutions to over 1,000 websites; Rogers Publishing, which produces
54 consumer, trade and professional publications; 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.
Substantially all of our operations are in Canada.
The financial information presented herein has been prepared on the
basis of IFRS for financial statements and is expressed in Canadian
dollars unless otherwise stated. Comparative amounts for 2010
included in this MD&A have been conformed to reflect our adoption
of IFRS, with effect from January 1, 2010. Periods prior to January 1,
2010 have not been conformed and were prepared in accordance
with Canadian generally accepted accounting principles (“GAAP”).
Concurrent with the impact of the transition to IFRS, we made certain
changes to our reportable segments. Commencing January 1, 2011,
the results of the former Rogers Retail segment are reported as
follows: the results of the Video retailing portion are now presented
as a separate operating sub-segment under the Cable segment, and
the portions related to retail distribution of wireless and cable
products and services are now included in the results of operations of
20 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT