Rogers 2011 Annual Report Download - page 57

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MANAGEMENT’S DISCUSSION AND ANALYSIS
In February 2012, Rogers’ Board of Directors approved an increase in
the annualized dividend rate from $1.42 to $1.58 per Class A Voting
and Class B Non-Voting Share effective immediately to be paid in
quarterly amounts of $0.395 per share. Such quarterly dividends are
only payable as and when declared by our Board and there is no
entitlement to any dividend prior thereto.
At the same time, in February 2012, the Board declared a quarterly
dividend totaling $0.395 per share on each of its outstanding Class A
Voting and Class B Non-Voting shares, such dividend to be paid on
April 2, 2012, to shareholders of record on March 19, 2012, and is the
first quarterly dividend to reflect the newly increased $1.58 per share
annualized dividend rate.
In February 2011, Rogers’ Board of Directors increased the annualized
dividend rate from $1.28 to $1.42 per Class A Voting and Class B Non-
Voting share effective immediately to be paid in quarterly amounts of
$0.355 per share.
Dividend Reinvestment Plan (“DRIP”)
On October 26, 2010, the Board approved the DRIP effective
November 1, 2010. The DRIP enables eligible shareholders to have all or a
portion of their regular quarterly cash dividends automatically reinvested
in additional Class B Non-Voting shares of Rogers’ common stock. No
commissions, service charges or brokerage fees are payable by Plan
participants in connection with shares purchased under the DRIP.
Shareholders who elect to participate see all or a portion of their
quarterly dividends reinvested in additional Class B Non-Voting shares
of Rogers at the average market price, as described in the DRIP Plan
Document, with respect to the applicable dividend payment date.
Computershare Trust Company of Canada is the Plan Agent and acts
on behalf of participants to invest eligible dividends. Registered
shareholders of Rogers wishing to participate in the DRIP can find the
full text of the DRIP Plan Document and enrolment forms at
computershare.com/rogers. Non-registered beneficial shareholders
are advised to contact their broker, investment dealer or other
financial intermediary for details on how to participate in the DRIP.
While Rogers, at its discretion, may fund the quarterly DRIP share
requirements with either Class B Non-Voting shares acquired on the
Canadian open market or issued by Rogers, our current intention is
that such shares will, for the foreseeable future, continue to be
acquired on the Canadian open market by the Plan Agent.
Quarterly dividends are only payable as and when declared by the
Board and there is no entitlement to any dividend prior thereto.
Before enrolling in the DRIP, shareholders are advised to read the
complete text of the DRIP and to consult their financial advisors
regarding their unique investment profile and tax situation. Only
Canadian and U.S. residents can participate in the DRIP.
ANNUALIZED DIVIDENDS
PER SHARE AT YEAR END
$1.16 $1.28 $1.42
2009 20102011
(In millions of dollars)
2011 CASH RETURNED TO SHAREHOLDERS
2011
$1,902
Share buybacks: $1,099
Stock option buybacks: $45
Dividends: $758
COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Contractual Obligations
Our material obligations under firm contractual arrangements are
summarized below at December 31, 2011. See also Notes 17, 18 and
25 to the 2011 Audited Consolidated Financial Statements.
Material Obligations Under Firm Contractual Arrangements
(In millions of dollars) Less Than 1 Year 1-3 Years 4-5 Years After 5 Years Total
Long-term debt(1) $ – $ 1,725 $ 1,844 $ 6,533 $ 10,102
Debt derivative instruments(2) – 331 148 16 495
Operating leases 132 175 74 42 423
Player contracts 47 62 25 7 141
Purchase obligations(3) 563 834 297 110 1,804
Pension obligation(4) 73 – – – 73
Other long-term liabilities – 20 9 8 37
Total $ 815 $ 3,147 $ 2,397 $ 6,716 $ 13,075
(1) Amounts reflect principal obligations due at maturity.
(2) Amounts reflect net disbursements due at maturity. U.S. dollar amounts have been translated into Canadian dollars at the Bank of Canada year-end rate.
(3) Purchase obligations consist of agreements to purchase goods and services that are enforceable and legally binding and that specify all significant terms, including fixed or
minimum quantities to be purchased, price provisions and timing of the transaction. In addition, we incur expenditures for other items that are volume-dependent.
(4) Represents expected contributions to our pension plans in 2012. Contributions for the year ended December 31, 2013 and beyond cannot be reasonably estimated as they
will depend on future economic conditions and may be impacted by future government legislation.
2011 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 53