Rogers 2015 Annual Report Download - page 138

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 28: GUARANTEES
We had the following guarantees as at December 31, 2015 and
2014 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.
No amount has been accrued in the Consolidated Statements of
Financial Position relating to these types of indemnifications or
guarantees as at December 31, 2015 or 2014. Historically, we have
not made any significant payments under these indemnifications or
guarantees.
NOTE 29: COMMITMENTS AND CONTINGENT LIABILITIES
ACCOUNTING POLICY
Contingent liabilities are liabilities of uncertain timing or amount
and are not recognized until we have a present obligation as a
resultofapastevent,itisprobablethatwewillexperiencean
outflow of resources embodying economic benefits to settle the
obligation, and a reliable estimate can be made of the amount of
the obligation.
We disclose our contingent liabilities unless the possibility of an
outflow of resources in settlement is remote.
USE OF ESTIMATES AND JUDGMENTS
JUDGMENTS
We are exposed to possible losses related to various claims and
lawsuits against us for which the outcome is not yet known. We
therefore make significant judgments in determining the
probability of loss when we assess contingent liabilities.
EXPLANATORY INFORMATION
COMMITMENTS
The table and paragraphs below show the future minimum payments for our contractual commitments that are not recognized as
liabilities as at December 31, 2015:
(In millions of dollars)
Less than
1 Year 1-3 Years 4-5 Years
After
5Years Total
Operating leases 153 229 114 64 560
Player contracts 1137 166 80 – 383
Purchase obligations 2457 286 136 94 973
Program rights 3620 1,135 1,096 2,948 5,799
Total commitments 1,367 1,816 1,426 3,106 7,715
1Player contracts are Toronto Blue Jays players’ salary contracts into which we have entered and are contractually obligated to pay.
2Purchase obligations are the contractual obligations under service, product, and handset contracts to which we have committed for at least the next five years.
3Program rights are the agreements into which we have entered to acquire broadcasting rights for sports broadcasting programs and films for periods in excess of one year at
contract inception.
136 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT