Rogers 2011 Annual Report Download - page 78

MANAGEMENT’S DISCUSSION AND ANALYSIS
SUMMARY OF FINANCIAL RESULTS OF LONG-TERM DEBT
GUARANTORS
Our outstanding public debt, $2.4 billion bank credit facility and
Derivatives are unsecured obligations of RCI, as obligor, and RCP, as
co-obligor or guarantor, as applicable.
The following table sets forth the selected unaudited consolidating
summary financial information for RCI for the periods identified
below, presented with a separate column for: (i) RCI; (ii) RCP; (iii) our
non-guarantor subsidiaries (“Other Subsidiaries”) on a combined
basis; (iv) consolidating adjustments; and (v) the total consolidated
amounts. Information for periods prior to July 1, 2010 has been
presented as if the corporate reorganization (which occurred on
July 1, 2010) had occurred on January 1, 2010.
Years ended December 31 (unaudited)(3)(4)
RCI (1)(2) RCP (1)(2)
Other
Subsidiaries(2)
Consolidating
Adjustments (2)
Total Consolidated
Amounts
(In millions of dollars) Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010
Statement of Income Data:
Revenue $ 105 $97$ 10,901 $ 10,604 $ 1,674 $ 1,521 $ (252) $ (80) $ 12,428$ 12,142
Operating income (loss) (169) (141) 2,9583,072 107 12 (68)(62) 2,8282,881
Net income (loss) 1,563 1,502 2,920 3,147 861 363 (3,781) (3,510) 1,563 1,502
As at period end December 31 (unaudited)(3)(4)
RCI (1)(2) RCP (1)(2)
Other
Subsidiaries(2)
Consolidating
Adjustments (2)
Total Consolidated
Amounts
(In millions of dollars) Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010 Dec. 31 2011 Dec. 31 2010
Balance Sheet Data (at period end):
Current assets $ 710 $ 650 $ 5,288 $ 2,773 $ 1,608$ 1,622 $ (5,694) $ (3,286) $ 1,912 $ 1,759
Non-current assets 23,38319,374 11,350 9,075 5,6815,373 (23,964) (18,548) 16,450 15,274
Current liabilities 5,5383,018 1,834 2,045 868952 (5,691) (3,182) 2,549 2,833
Non-current liabilities 11,640 9,839 259 218 188 207 154 176 12,241 10,440
(1) For the purposes of this table, investments in subsidiary companies are accounted for by the equity method.
(2) Amounts recorded in current liabilities and non-current liabilities for the guarantors do not include any obligations arising as a result of being a guarantor or co-obligor, as
the case may be, under any of RCI’s long-term debt.
(3) Information for periods prior to July 1, 2010 has been presented as if the corporate reorganization (which occurred on July 1, 2010) had occurred on January 1, 2010.
(4) Information prior to January 1, 2011 has been conformed to reflect the adoption of IFRS and has been reclassified for a change in business strategy as described in this
MD&A.
CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
As of the end of the period covered by this report (the “Evaluation
Date”), we conducted an evaluation (under the supervision and with
the participation of our management, including the Chief Executive
Officer and Chief Financial Officer), pursuant to Rule 13a-15
promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), of the effectiveness of the design and
operation of our disclosure controls and procedures. Based on this
evaluation, our Chief Executive Officer and Chief Financial Officer
concluded that as of the Evaluation Date such disclosure controls and
procedures were effective.
Management’s Report on Internal Control Over Financial
Reporting
The management of our company is responsible for establishing and
maintaining adequate internal controls over financial reporting. Our
internal control system was designed to provide reasonable assurance
to our management and Board of Directors regarding the preparation
and fair presentation of published financial statements in accordance
with generally accepted accounting principles. All internal control
systems, no matter how well designed, have inherent limitations.
Therefore, even those systems determined to be effective can provide
only reasonable assurance with respect to financial statement
preparation and presentation.
Management maintains a comprehensive system of controls intended
to ensure that transactions are executed in accordance with
management’s authorization, assets are safeguarded, and financial
records are reliable. Management also takes steps to see that
information and communication flows are effective and to monitor
performance, including performance of internal control procedures.
Management assessed the effectiveness of our internal control over
financial reporting as of December 31, 2011, based on the criteria set
forth in the Internal Control-Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission
(“COSO”). Based on this assessment, management has concluded that,
as of December 31, 2011, our internal control over financial reporting
is effective. Our independent auditor, KPMG LLP, has issued an audit
report that we maintained, in all material respects, effective internal
control over financial reporting as of December 31, 2011, based on
the criteria established in Internal Control – Integrated Framework
issued by the COSO.
Changes in Internal Control Over Financial Reporting and
Disclosure Controls and Procedures
There have been no changes in our internal controls over financial
reporting during 2011 that have materially affected, or are
reasonably likely to materially affect, our internal controls over
financial reporting.
74 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT