Rogers 2012 Annual Report Download - page 58

MANAGEMENT’S DISCUSSION AND ANALYSIS
DIVIDENDS ON RCI EQUITY SECURITIES
In February 2013, Rogers’ Board of Directors approved an annualized
dividend rate of $1.74 per Class A Voting and Class B Non-Voting
share, effective immediately, to be paid in quarterly amounts of
$0.435. Such quarterly dividends are only payable as and when
declared by our Board and there is no entitlement to any dividend
prior thereto. This follows the increase to our annualized dividend
rate from $1.42 to $1.58 per Class A Voting and Class B Non-Voting
shares in February 2012.
In 2012, we declared and paid dividends on each of our outstanding
Class A Voting and Class B Non-Voting shares. We paid an aggregate
amount of $803 million in cash dividends, an increase of $45 million
from 2011.
We have declared and paid dividends on each of our outstanding Class A Voting and Class B Non-Voting shares during the past two years, as
follows:
Declaration date Record date Payment date Dividend per share Dividends paid (in millions)
February 15, 2011 March 18, 2011 April 1, 2011 $ 0.355 $ 195
April 27, 2011 June 15, 2011 July 4, 2011 $ 0.355 $ 194
August 17, 2011 September 15, 2011 October 3, 2011 $ 0.355 $ 190
October 26, 2011 December 15, 2011 January 4, 2012 $ 0.355 $ 187
February 21, 2012 March 19, 2012 April 2, 2012 $ 0.395 $ 207
April 25, 2012 June 15, 2012 July 3, 2012 $ 0.395 $ 205
August 15, 2012 September 14, 2012 October 3, 2012 $ 0.395 $ 204
October 24, 2012 December 14, 2012 January 2, 2013 $ 0.395 $ 204
We currently expect that the dividend record and payment dates for
the 2013 declaration of dividends, subject to the declaration by our
Board each quarter at their sole discretion, would be as follows:
Record date Payment date
March 15, 2013 April 2, 2013
June 14, 2013 July 3, 2013
September 13, 2013 October 2, 2013
December 13, 2013 January 2, 2014
INTEREST RATE AND FOREIGN EXCHANGE
MANAGEMENT
Foreign Currency Forward Contracts
In July 2011, we entered into an aggregate US$720 million of foreign
currency forward contracts to hedge the foreign exchange risk on
certain forecast expenditures (“Expenditure Derivatives”, and
together with Debt Derivatives, “Derivatives”). The Expenditure
Derivatives fix the exchange rate on an aggregate US$20 million per
month of our forecast expenditures at an average exchange rate of
Cdn$0.9643/US$1 from August 2011 through July 2014. As at
December 31, 2012, US$380 million of these Expenditure Derivatives
remain outstanding, all of which qualify for and have been
designated as hedges for accounting purposes.
Economic Hedge Analysis
For the purposes of our discussion on the hedged portion of long-
term debt, we have used non-GAAP measures given that we include
all Debt Derivatives hedging our U.S. dollar-denominated debt,
whether or not they qualify as hedges for accounting purposes. Debt
Derivatives are used for risk-management purposes only. The
Canadian dollar equivalent of our U.S. dollar-denominated long-term
debt illustrated in the table below reflects the contracted foreign
exchange rate for all of our Debt Derivatives, regardless of
qualifications for accounting purposes as a hedge.
At December 31, 2012, 100% of our U.S. dollar-denominated debt
was hedged on an economic basis, while 91.7% of our U.S. dollar-
denominated debt was hedged on an accounting basis. The Debt
Derivatives hedging our US$350 million Senior Notes due 2038 do not
qualify as hedges for accounting purposes.
RATIO OF ADJUSTED OPERATING
PROFIT TO INTEREST
7.0x 7.1x 6.8x
2010 2011 2012
54 ROGERS COMMUNICATIONS INC. 2012 ANNUAL REPORT