Rogers 2014 Annual Report Download - page 132

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SUBSIDIARIES, ASSOCIATES AND JOINT ARRANGEMENTS
We have the following significant subsidiaries:
• Rogers Communications Partnership
• Rogers Media Inc.
We have 100% ownership interest in 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 of the subsidiaries to those of Rogers. There are no significant
restrictions on the ability of subsidiaries, joint arrangements and associates
totransferfundstoRogersascashdividendsortorepayloansor
advances.
We carried out the following business transactions with our associates
and joint arrangements. Transactions between us and our subsidiaries
have been eliminated on consolidation and are not disclosed in this
note.
(In millions of dollars) 2014 2013
Revenues 15 3
Purchases 88 83
Sales to and purchases from our associates and joint arrangements 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, 2014 was $15 million and included in accounts payable
and accrued liabilities (December 31, 2013 – $14 million payable).
NOTE 28: GUARANTEES
We had the following guarantees as at December 31, 2014 and 2013
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 as at December 31, 2014 or 2013.
Historically, we have not made any significant payments under these
indemnifications or guarantees.
NOTE 29: COMMITMENTS AND CONTINGENT LIABILITIES
COMMITMENTS
The table below shows the future minimum payments under operating leases as at December 31, 2014:
(In millions of dollars)
Less Than
1 Year 1-3 Years 4-5 Years
After
5Years Total
Operating leases 150 221 120 67 558
Player contracts 1132 100 52 5 289
Purchase obligations 21,610 308 140 102 2,160
Program rights 3735 1,178 1,117 3,487 6,517
Total commitments 2,627 1,807 1,429 3,661 9,524
1Player contracts are Blue Jays players’ salary contracts we have entered into and are contractually obligated to pay.
2Purchase obligations are the contractual obligations under service, product and handset contracts that we have committed to for at least the next fiveyears.Purchase
obligations include commitment to purchase 50% joint ownership of Glentel Inc., expected to occur in 2015, subject to regulatory approval and completion of BCE lnc.’s
acquisition of Glentel lnc. (see note 31).
3Program rights are the agreements we have entered into to acquire broadcasting rights for sports broadcasting programs and films for periods ranging from one to twelve
years.
128 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT