Rogers 2015 Annual Report Download - page 105

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Multiple deliverable arrangements
We offer some products and services as part of multiple deliverable
arrangements. We recognize these as follows:
• divide the products and services into separate units of
accounting, as long as the delivered elements have stand-alone
valuetocustomersandwecandeterminethefairvalueofany
undelivered elements objectively and reliably; then
• measure and allocate the arrangement consideration among the
accounting units based on their relative fair values and recognize
revenue related to each unit when the relevant criteria are met
for each unit individually; however
• when an amount allocated to a delivered item is contingent
upon the delivery of additional items or meeting specified
performance conditions, the amount allocated to the delivered
item is limited to the non-contingent amount, as applicable.
Unearned revenue
We recognize payments we receive in advance of providing goods
and services as unearned revenue. Advance payments include
subscriber deposits, cable installation fees, ticket deposits related
to Toronto Blue Jays ticket sales, and amounts subscribers pay for
services and subscriptions that will be provided in future periods.
EXPLANATORY INFORMATION
Years ended December 31
(In millions of dollars) 2015 2014
Wireless:
Network revenue 6,902 6,743
Equipment sales 749 562
Total Wireless 7,651 7,305
Cable:
Internet 1,343 1,245
Television 1,669 1,734
Phone 445 478
Service revenue 3,457 3,457
Equipment sales 810
Total Cable 3,465 3,467
Business Solutions:
Next generation 288 271
Legacy 85 106
Service revenue 373 377
Equipment sales 45
Total Business Solutions 377 382
Media:
Advertising 866 775
Subscription 440 382
Retail 308 314
Other 465 355
Total Media 2,079 1,826
Corporate items and intercompany
eliminations (158) (130)
Total operating revenue 13,414 12,850
NOTE 6: OPERATING COSTS
Years ended December 31
(In millions of dollars) 2015 2014
Cost of equipment sales and direct
channel subsidies 1,849 1,493
Merchandise for resale 202 206
Other external purchases 4,411 4,229
Employee salaries and benefits and
stock-based compensation 1,975 1,940
Total operating costs 8,437 7,868
2015 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 103