Rogers 2013 Annual Report Download - page 127

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Transactions
We have entered into business transactions with companies whose
partners or senior officers are directors of Rogers, including the
chairman and chief executive officer of a firm that is paid commissions
for insurance coverage, the senior partner and chairman of a law firm
that provides legal services, and the chairman of a company that
provides printing services.
We record these transactions at the amount agreed to by the related
parties. The transactions are reviewed by the Audit Committee of our
Board of Directors. The amounts owing are unsecured, interest-free and
due for payment in cash within one month from the date of the
transaction. There are no significant outstanding balances with these
related parties at December 31, 2013.
Transaction value
Balance outstanding,
December 31,
2013 2012 2013 2012
Printing, legal services and
commission paid on premiums
for insurance coverage $43 $43 $2 $1
Subsidiaries, Joint Arrangements and Associates
We have the following significant subsidiaries:
• Rogers Communications Partnership
• Rogers Media Inc.
We have 100% ownership interest in all of these subsidiaries. Our
subsidiaries are incorporated in Canada and have the same reporting
period for annual financial statements reporting.
When necessary, adjustments are made to conform the accounting
policies with those of Rogers. There are no significant restrictions on the
ability of subsidiaries, joint arrangements and associates to transfer
funds to Rogers as cash dividends or to repay loans or advances.
We carried out the following business transactions with our joint
arrangements and associates. Transactions between us and our
subsidiaries have been eliminated on consolidation and are not
disclosed in this note.
Transaction value
2013 2012
Revenues $3 $1
Purchases 83 38
Sales to and purchases from our joint arrangements and associates are
made at terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at year-end are unsecured and
interest-free, and settled in cash. The outstanding balances with these
related parties relating to similar business transactions as at
December 31, 2013 was $14 million and included in accounts payable
and accrued liabilities (December 31, 2012 – $1 million payable).
In 2012, we acquired certain network assets and 2500 MHz spectrum
from Inukshuk, a 50% owned joint venture. As a result, we recorded a
gain of $233 million in other income, as the portion of the excess of fair
value over carrying value related to the other non-related venturer’s
50% interest in the spectrum licences (see note 14).
NOTE 26: GUARANTEES
We had the following guarantees at December 31, 2013 and 2012 as
part of our normal course of business:
Business Sale and Business Combination Agreements
As part of transactions involving business dispositions, sales of assets or
other business combinations, we may be required to pay counterparties
for costs and losses incurred as a result of breaches of representations
and warranties, intellectual property right infringement, loss or
damages to property, environmental liabilities, changes in laws and
regulations (including tax legislation), litigation against the
counterparties, contingent liabilities of a disposed business or
reassessments of previous tax filings of the corporation that carries on
the business.
Sales of Services
As part of transactions involving sales of services, we may be required
to make payments to counterparties as a result of breaches of
representations and warranties, changes in laws and regulations
(including tax legislation) or litigation against the counterparties.
Purchases and Development of Assets
As part of transactions involving purchases and development of assets,
we may be required to pay counterparties for costs and losses incurred
as a result of breaches of representations and warranties, loss or
damages to property, changes in laws and regulations (including tax
legislation) or litigation against the counterparties.
Indemnifications
We indemnify our directors, officers and employees against claims
reasonably incurred and resulting from the performance of their services
to Rogers. We have liability insurance for our directors and officers and
those of our subsidiaries.
We are unable to make a reasonable estimate of the maximum
potential amount we would be required to pay to counterparties. The
amount also depends on the outcome of future events and conditions,
which cannot be predicted. No amount has been accrued in the
consolidated statements of financial position relating to these types of
indemnifications or guarantees at December 31, 2013 or 2012.
Historically, we have not made any significant payments under these
indemnifications or guarantees.
2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 123