Rogers 2012 Annual Report Download - page 60

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MANAGEMENT’S DISCUSSION AND ANALYSIS
Class B Non-Voting Class A Voting
2010 2011 2012
(In millions)
TOTAL COMMON SHARES
OUTSTANDING
112.5 112.5 112.5
443.1 412.4 402.8
ANNUALIZED DIVIDENDS
PER SHARE AT YEAR END
$1.28 $1.42 $1.58
2010 2011 2012
(In millions of dollars)
2012 CASH RETURNED TO SHAREHOLDERS
2012
$1,153
Share buybacks: $350
Dividends: $803
COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Contractual Obligations
Our material obligations under firm contractual arrangements as at December 31, 2012 are summarized below. See also Notes 17, 19 and 26 to
our 2012 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) $ 348 $ 1,373 $ 2,047 $ 7,090 $ 10,858
Debt Derivative instruments(2) 112 418 – 59 589
Operating leases 123 171 79 73 446
Player contracts 112 200 52 10 374
Purchase obligations(3) 1,683 1,988 136 73 3,880
Program rights 327 281 201 289 1,098
Pension obligation(4) 96 – – – 96
Other long-term liabilities – 17 10 6 33
Total $ 2,801 $ 4,448 $ 2,525 $ 7,600 $ 17,374
(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 2013. Contributions for the year ended December 31, 2014 and beyond cannot be reasonably estimated, as they
will depend on future economic conditions and may be impacted by future government legislation.
OFF-BALANCE SHEET ARRANGEMENTS
Guarantees
As a regular part of our business, we enter into agreements that
provide for indemnification and guarantees to counterparties in
transactions involving business sale and business combination
agreements, sales of services and purchases and development of assets.
Due to the nature of these indemnifications, we are unable to make a
reasonable estimate of the maximum potential amount we could be
required to pay counterparties. Historically, we have not made any
significant payment under these indemnifications or guarantees. Refer
to Note 25 to our 2012 Audited Consolidated Financial Statements.
Derivative Instruments
As previously discussed, we use derivative instruments to manage our
exposure to interest rate and foreign currency risks. We do not use
derivative instruments for speculative purposes.
Operating Leases
We have entered into operating leases for the rental of premises,
distribution facilities, equipment and wireless towers and other
contracts. The effect of terminating any one lease agreement would
not have an adverse effect on us as a whole. Refer to the section
“Contractual Obligations” and Note 26 to our 2012 Audited
Consolidated Financial Statements.
56 ROGERS COMMUNICATIONS INC. 2012 ANNUAL REPORT