Rogers 2014 Annual Report Download - page 121

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19: SHORT-TERM BORROWINGS
We entered into an accounts receivable securitization program with a
Canadian financial institution effective December 31, 2012, which
allows us to sell certain trade receivables into the program. As at
December 31, 2014, the proceeds of the sales were committed up to a
maximum of $900 million (2013 – $900 million). Effective January 1,
2015, we amended the terms of the accounts receivable securitization
program, increasing the maximum potential proceeds under the
program to $1.05 billion and extending the term of the program to
January 1, 2018.
We received funding of $192 million, net of repayments under the
program in 2014. We continue to service and retain substantially all of
the risks and rewards relating to the accounts receivables we sold, and
therefore, the receivables remain recognized on our Consolidated
Statements of Financial Position and the funding received is recorded
as short-term borrowings. The buyer’s interest in these trade
receivables ranks ahead of our interest. The program restricts us from
using the receivables as collateral for any other purpose. The buyer of
our trade receivables has no claim on any of our other assets.
(In millions of dollars) 2014 2013
Trade accounts receivable sold to buyer as security 1,135 1,091
Short-term borrowings from buyer (842) (650)
Overcollateralization 293 441
We incurred interest costs of $14 million in 2014 (2013 — $7 million)
which we recorded in finance costs.
NOTE 20: PROVISIONS
The table below shows our provisions and their classification between
current and long-term as at December 31, 2014 and 2013.
(In millions of dollars)
Decommissioning
liabilities Other Total
December 31, 2013 31 16 47
Additions 1 21 22
Adjustments to existing provisions 1 (6) (5)
Amounts used – (2) (2)
December 31, 2014 33 29 62
Current 2 5 7
Long-term 31 24 55
Cash outflows associated with our decommissioning liabilities are
generally expected to occur at the decommissioning dates of the
assets to which they relate, which are long-term in nature. The timing
and extent of restoration work that will be ultimately required for these
sites is uncertain.
Other provisions include onerous contracts and legal claims, which are
expected to be settled in one to five years.
2014 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 117