o
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REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
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ý
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ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Title of each class
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Name of each exchange on which registered
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Class B Non-Voting
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New York Stock Exchange
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2
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Auditors’ Fees
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2017
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2016
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|||||||
($)
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%
|
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($)
|
|
%
|
|||||
Audit Fees
(1)
|
|
5,999,395
|
|
|
83.4
|
%
|
|
5,337,800
|
|
|
76.2
|
Audit-Related Fees
(2)
|
|
1,105,826
|
|
|
15.4
|
%
|
|
996,420
|
|
|
14.2
|
Tax Fees
(3)
|
|
78,352
|
|
|
1.1
|
%
|
|
83,110
|
|
|
1.2
|
All Other Fees
(4)
|
|
8,694
|
|
|
0.1
|
%
|
|
590,107
|
|
|
8.4
|
Total
|
|
7,192,267
|
|
|
100.0
|
%
|
|
7,007,437
|
|
|
100.0
|
(1)
|
Consist of fees related to audits, prospectuses, registration statements and other filings with various regulatory authorities, quarterly reviews of interim financial statements, audit procedures on new accounting standards not yet effective, and consultations related to accounting matters impacting the consolidated financial statements.
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(2)
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Consist primarily of pension plan audits, audits and reviews of subsidiaries for statutory or regulatory reporting, French translation of certain filings with regulatory authorities, other assurance engagements, due diligence services in respect of potential acquisitions, and consultations regarding accounting standards not yet effective.
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(3)
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Consist of fees for tax consultation and compliance services, including indirect taxes.
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(4)
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Consist mainly of fees for information technology and operational advisory services.
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3
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1.
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Annually the Company will provide the Audit and Risk Committee with a list of the audit-related and non-audit services that may be provided by the auditor during the year to the Company. The Audit and Risk Committee will review the services with the auditor and management, considering whether the provision of the service is compatible with maintaining the auditor’s independence.
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2.
|
Management may engage the auditor for specific engagements that are included in the list of pre-approved services referred to above if the estimated fees do not exceed $500,000 per engagement per quarter.
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3.
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The Audit and Risk Committee delegates authority to the Chairman of the Audit and Risk Committee to approve requests for services not included in the pre-approved list of services or for services not previously pre-approved by the Audit and Risk Committee. Any services approved by the Chairman will be reported to the full Audit and Risk Committee at the next meeting.
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4.
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A listing of all audit and non-audit services and fees rendered to the Company and its subsidiaries by KPMG LLP will be reviewed each quarter by the Audit and Risk Committee.
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4
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By:
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"Joe Natale"
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"Anthony Staffieri"
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Joe Natale
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Anthony Staffieri, FCPA, FCA
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President and Chief Executive Officer
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Chief Financial Officer
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By:
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"Joe Natale"
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"Anthony Staffieri"
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Joe Natale
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Anthony Staffieri, FCPA, FCA
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President and Chief Executive Officer
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Chief Financial Officer
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5
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Exhibit Number
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Description
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23.1
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Consent of Independent Registered Public Accounting Firm
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31.1
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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31.2
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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32.1
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Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
†
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99.1
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Annual Information Form for the fiscal year ended December 31, 2017
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99.2
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Management’s Discussion and Analysis for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) under cover of a Form 6-K dated March 8, 2018
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|
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99.3
|
Annual Audited Consolidated Financial Statements, together with the reports of independent registered public accounting firm, for the fiscal year ended December 31, 2017
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†
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This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference on any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.
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6
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•
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our report dated
March 8, 2018
on the consolidated financial statements of Rogers Communications Inc. (the “Company”) which comprise the consolidated statements of financial position of the Company as at December 31,
2017
and December 31,
2016
, the consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the years in the two-year period ended December 31,
2017
, and notes, comprising a summary of significant accounting policies and other explanatory information; and
|
•
|
our report dated
March 8, 2018
on the effectiveness of the Company’s internal control over financial reporting as of December 31,
2017
,
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1.
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I have reviewed this annual report on Form 40-F of Rogers Communications Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
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4.
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The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
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5.
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The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit and risk committee of the issuer’s board of directors (or persons performing the equivalent functions):
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a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
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Date: March 8, 2018
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"Joe Natale"
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Joe Natale
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President and Chief Executive Officer
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1.
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I have reviewed this annual report on Form 40-F of Rogers Communications Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
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4.
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The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
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5.
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The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit and risk committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
|
|
Date: March 8, 2018
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"Joe Natale"
|
|
Joe Natale
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 40-F of Rogers Communications Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
|
4.
|
The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
|
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
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5.
|
The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit and risk committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
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Date: March 8, 2018
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"Anthony Staffieri"
|
|
Anthony Staffieri, FCPA, FCA
|
|
Chief Financial Officer
|
1.
|
I have reviewed this annual report on Form 40-F of Rogers Communications Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
|
4.
|
The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
|
5.
|
The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit and risk committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
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Date: March 8, 2018
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"Anthony Staffieri"
|
|
Anthony Staffieri, FCPA, FCA
|
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Chief Financial Officer
|
|
|
Date: March 8, 2018
|
"Joe Natale"
|
|
Joe Natale
|
|
President and Chief Executive Officer
|
|
|
Date: March 8, 2018
|
"Anthony Staffieri"
|
|
Anthony Staffieri, FCPA, FCA
|
|
Chief Financial Officer
|
|
|
Date: March 8, 2018
|
"Joe Natale"
|
|
Joe Natale
|
|
President and Chief Executive Officer
|
|
|
Date: March 8, 2018
|
"Anthony Staffieri"
|
|
Anthony Staffieri, FCPA, FCA
|
|
Chief Financial Officer
|
|
|
Page reference / incorporated by
reference from
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||
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Annual
Information Form
(Page #)
|
2017 MD&A
(Page #)
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Item 1
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Cover Page
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1
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Item 2
|
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Index
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2
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Item 3
|
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Corporate Structure
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3.1
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Name, Address and Incorporation
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3.2
|
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Intercorporate Relationships
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Item 4
|
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General Development of the Business
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4.1
|
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Three Year History
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4.2
|
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Significant Acquisitions
|
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Item 5
|
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Narrative Description of the Business
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5.1
|
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About Rogers
|
25
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|
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Understanding Our Business
|
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29
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Products and Services
|
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29
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Competition
|
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31
|
|
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Industry Trends
|
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33
|
|
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Our Strategy, Key Performance Drivers, and Strategic Highlights
|
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34
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Capability to Deliver Results
|
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39
|
|
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Employees
|
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54
|
|
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Commitments and Contractual Obligations
|
|
68
|
|
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Properties, Trademarks, Environmental, and Other Matters
|
|
||
5.2
|
|
Risk Factors
|
72
|
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Item 6
|
|
Dividends
|
|
|
6.1
|
|
Dividends
|
67
|
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Item 7
|
|
Description of Capital Structure
|
|
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7.1
|
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General Description of Capital Structure
|
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7.2
|
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Constraints
|
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7.3
|
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Ratings
|
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Item 8
|
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Market for Securities
|
|
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8.1
|
|
Trading Price and Volume
|
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8.2
|
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Prior Sales
|
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Item 9
|
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Escrowed Securities and Securities Subject to Contractual Restriction on Transfer
|
|
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Item 10
|
|
Directors and Officers
|
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10.1
|
|
Name, Occupation and Security Holding
|
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10.2
|
|
Cease Trade Orders, Bankruptcies, Penalties, or Sanctions
|
|
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10.3
|
|
Conflicts of Interest
|
|
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Item 11
|
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Promoters
|
|
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Item 12
|
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Legal Proceedings and Regulatory Actions
|
|
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12.1
|
|
Legal Proceedings
|
78
|
|
12.2
|
|
Regulatory Actions
|
|
Rogers Communications Inc.
|
2
|
Fiscal 2017
|
|
|
Page reference / incorporated by
reference from
|
||
|
|
Annual
Information Form
(Page #)
|
2017 MD&A
(Page #)
|
|
Item 13
|
|
Interest of Management and Others in Material Transactions
|
|
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Item 14
|
|
Transfer Agents and Registrars
|
|
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Item 15
|
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Material Contracts
|
|
|
Item 16
|
|
Interests of Experts
|
|
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16.1
|
|
Name of Experts
|
|
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16.2
|
|
Interests of Experts
|
|
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Item 17
|
|
Audit and Risk Committee
|
|
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17.1
|
|
Audit and Risk Committee Mandate
|
|
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17.2
|
|
Composition of the Audit and Risk Committee
|
|
|
17.3
|
|
Relevant Education and Experience
|
|
|
17.4
|
|
Reliance on Certain Exemptions
|
|
|
17.5
|
|
Reliance on the Exemption in Subsection 3.3(2) or Section 3.6
|
|
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17.6
|
|
Reliance on Section 3.8
|
|
|
17.7
|
|
Audit and Risk Committee Oversight
|
|
|
17.8
|
|
Pre-Approval Policies and Procedures
|
|
|
17.9
|
|
External Auditors’ Fees and Services
|
|
|
Item 18
|
|
Additional Information
|
|
|
18.1
|
|
Additional Information
|
|
Rogers Communications Inc.
|
3
|
Fiscal 2017
|
Segment
|
Principal activities
|
Wireless
|
Wireless telecommunications operations for Canadian consumers and businesses.
|
Cable
|
Cable telecommunications operations, including Internet, television, and telephony (phone) services for Canadian consumers and businesses.
|
Business Solutions
|
Network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the enterprise, public sector, and carrier wholesale markets.
|
Media
|
A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, digital media, and publishing.
|
(1)
|
Blue Jays Holdco Inc., together with its subsidiaries, holds a 100% interest in the Toronto Blue Jays Baseball Club (Toronto Blue Jays) and Rogers Centre.
|
Rogers Communications Inc.
|
4
|
Fiscal 2017
|
•
|
approximately
10.5 million
subscribers; and
|
•
|
approximately 33% subscriber and revenue share of the Canadian wireless market.
|
•
|
approximately
2.2 million
high-speed Internet subscribers;
|
•
|
approximately
1.7 million
Television subscribers -
approximately 30% of Canadian cable television subscribers
;
|
•
|
approximately
1.1 million
Phone subscribers; and
|
•
|
a network passing approximately
4.3 million
homes in Ontario, New Brunswick, and on the island of Newfoundland.
|
•
|
sold to enterprises and public sector;
|
•
|
sold to other carriers on a wholesale basis;
|
•
|
had 10,000 on-net fibre connected buildings; and
|
•
|
had fibre passing close to an additional 25,500 near-net buildings.
|
•
|
sports media and entertainment, such as Sportsnet and the Toronto Blue Jays;
|
•
|
our exclusive national 12-year National Hockey League (NHL) Agreement;
|
•
|
category-leading television and radio broadcasting properties;
|
•
|
multi-platform televised and online shopping;
|
•
|
digital media; and
|
•
|
publishing.
|
•
|
mobile and fixed high-speed Internet access;
|
•
|
wireless voice and enhanced voice features;
|
•
|
wireless home phone;
|
•
|
device protection;
|
•
|
text messaging;
|
•
|
e-mail;
|
•
|
global voice and data roaming, including Roam Like Home and Fido Roam;
|
•
|
bridging landline phones with wireless phones through products like Rogers Unison;
|
•
|
machine-to-machine solutions; and
|
•
|
advanced wireless solutions for businesses.
|
Rogers Communications Inc.
|
5
|
Fiscal 2017
|
•
|
Internet access (including basic and unlimited usage packages), security solutions, and e-mail;
|
•
|
access speeds of up to one gigabit per second (Gbps), covering our entire Cable footprint;
|
•
|
Rogers Ignite and Fido Internet unlimited packages, combining fast and reliable speeds with the freedom of unlimited usage and options for self-installation; and
|
•
|
Rogers Smart Home Monitoring, offering services such as monitoring, security, automation, energy efficiency, and smart control through a smartphone app.
|
•
|
local and network TV, including starter and premium channel packages along with à la carte channels;
|
•
|
on-demand television;
|
•
|
personal video recorders (PVRs), including Whole Home PVRs and a 4K PVR;
|
•
|
linear and time-shifted programming;
|
•
|
digital specialty channels;
|
•
|
4K television programming, including all 2017 and 2018 regular season Toronto Blue Jays home games and select marquee NHL and National Basketball Association (NBA) games; and
|
•
|
Rogers Anyplace TV, televised content delivered on smartphones, tablets, and personal computers.
|
•
|
residential and small business local telephony service; and
|
•
|
calling features such as voicemail, call waiting, and long distance.
|
•
|
voice, data networking, Internet protocol (IP), and Ethernet services over multi-service customer access devices that allow customers to scale and add services, such as private networking, Internet, IP voice, and cloud solutions, which blend seamlessly to grow with their business requirements;
|
•
|
optical wave, Internet, Ethernet, and multi-protocol label switching services, providing scalable and secure metro and wide area private networking that enables and interconnects critical business applications for businesses that have one or many offices, data centres, or points of presence (as well as cloud applications) across Canada;
|
•
|
simplified information technology (IT) and network technologies with security-embedded, cloud-based, professionally-managed solutions; and
|
•
|
extensive wireless and cable access networks services for primary, bridging, and back-up connectivity.
|
•
|
Sportsnet's four regional stations, Sportsnet ONE, Sportsnet 360, and Sportsnet World;
|
•
|
City network, which, together with affiliated stations, has broadcast distribution to approximately 85% of Canadian individuals;
|
•
|
OMNI multicultural broadcast television stations, including OMNI Regional broadcast television stations, which provide multilingual newscasts nationally to all digital basic television subscribers;
|
•
|
specialty channels that include FX (Canada), FXX (Canada), and Outdoor Life Network; and
|
•
|
Today's Shopping Choice (TSC), Canada’s only nationally televised shopping channel, which generates a significant and growing portion of its revenue from online sales.
|
•
|
our digital sports-related assets, including Rogers NHL LIVE (formerly Rogers NHL GameCentre LIVE) and Sportsnet NOW;
|
•
|
many well-known consumer brands, such as Maclean’s, Chatelaine, Today's Parent, and Hello! Canada; and
|
•
|
a broad digital presence that continues the extension of content across new and existing platforms.
|
Rogers Communications Inc.
|
6
|
Fiscal 2017
|
•
|
our 37.5% ownership interest in Maple Leaf Sports & Entertainment Ltd. (MLSE), which owns the Toronto Maple Leafs, the Toronto Raptors, Toronto FC, the Toronto Argonauts, and the Toronto Marlies, as well as various associated real estate holdings; and
|
•
|
our 50% ownership interest in Glentel Inc. (Glentel), a large provider of multicarrier wireless and wireline products and services with several hundred Canadian retail distribution outlets.
|
•
|
an extensive independent dealer network;
|
•
|
company-owned Rogers, Fido, and chatr retail stores;
|
•
|
major retail chains and convenience stores;
|
•
|
other distribution channels, such as WOW! mobile boutique, as well as Wireless Wave and TBooth Wireless through our ownership interest in Glentel;
|
•
|
customer self-serve using rogers.com, fido.ca, chatrwireless.com, and e-commerce sites;
|
•
|
our call centres; and
|
•
|
outbound telemarketing.
|
•
|
company-owned Rogers and Fido retail stores;
|
•
|
customer self-serve using rogers.com and fido.ca;
|
•
|
our call centres, outbound telemarketing, and door-to-door agents; and
|
•
|
major retail chains.
|
•
|
Declared a quarterly dividend of $0.48 per each outstanding Class A Voting Share and Class B Non-Voting Share in January 2018.
|
•
|
Issued US$750 million 30-year 4.3% senior notes and fully hedged the foreign exchange risk. We received net proceeds of $938 million from the issuance.
|
•
|
Declared a quarterly dividend of $0.48 per each outstanding Class A Voting Share and Class B Non-Voting Share during 2017.
|
•
|
We ended the year with approximately $2.7 billion of available liquidity, including $2.3 billion available under our bank and letter of credit facilities and $0.4 billion available under our $1.05 billion accounts receivable securitization program.
|
Rogers Communications Inc.
|
7
|
Fiscal 2017
|
•
|
Attracted our highest number of postpaid net additions and realized our lowest annual postpaid churn rate since 2010.
|
•
|
Introduced Data Bytes for Fido mobile, giving new and existing Fido Pulse plan customers an additional hour of data, five times per billing cycle, at no extra charge. With this feature, customers can activate their data session and start streaming, searching, and sharing, worry-free.
|
•
|
Launched Stream Saver, part of our worry-free data management objective that allows users to get more out of their data plan by switching video streaming settings between high definition and standard definition.
|
•
|
Launched Social Media Security by Rogers, a cloud-based solution that allows Canadian businesses to better safeguard their social media accounts.
|
•
|
Announced we are tying 50% of our 2018 company-wide bonus plan to the achievement of certain customer metrics.
|
•
|
Augmented sections of our existing LTE network with 4.5G technology investments that are designed to migrate to a 5G environment.
|
•
|
Initiated a program to upgrade our hybrid fibre-coaxial infrastructure with additional fibre deployments and further DOCSIS technology enhancements. This program will lower the number of homes passed per node, will incorporate the latest technologies to help deliver more bandwidth and an even more reliable customer experience, and will lay the foundation to evolve to fibre-to-the-home.
|
•
|
Launched LTE-Advanced (LTE-A) service in many communities in Manitoba, including Winnipeg, Brandon, Portage La Prairie, Churchill, and more. We also expanded other cellular services in Manitoba.
|
•
|
Expanded LTE wireless service in Alberta; expanded LTE wireless service and implemented network improvements in several communities across British Columbia.
|
•
|
Extended our 700 MHz LTE network reach to
92%
of Canada’s population and extended our overall LTE coverage to
96%
of the population.
|
•
|
Recognized as the fastest ISP in both Ontario and Canada between July 2016 and May 2017, according to PCMag's Speed Index.
|
•
|
For the third consecutive year, Sportsnet was ranked Canada's number-one sports media brand and Canada’s number-one specialty network.
|
•
|
Successfully completed the third year of our exclusive 12-year national NHL Agreement while bringing the NHL to more Canadians than ever before with our 2016-2017 NHL season being our most successful NHL season to date.
|
•
|
Extended, for seven additional years, our sublicensing arrangement with CBC for English broadcasts of Hockey Night in Canada and the Stanley Cup playoffs, beginning with the 2019-2020 season. CBC will continue to broadcast nationally-televised regular season games on Saturday night, plus all four rounds of the Stanley Cup playoffs.
|
•
|
Achieved excellent radio ratings across Canada, including 98.1 CHFI and 680 NEWS in Toronto, where they were the city's number-one radio and news stations, respectively, for the key demographic between ages 25 and 54.
|
•
|
Added four new 4K services to our existing lineup, allowing our customers to watch some of the world’s biggest artists, concerts, movies, and events in 4K, in addition to more than 100 Toronto Blue Jays, NHL, and NBA games.
|
•
|
Launched OMNI Regional across the country, a new television service providing Canada’s diverse language communities with access to vital news and information programming.
|
•
|
Launched CityNews in Edmonton and Winnipeg, and announced upcoming CityNews launches in Vancouver, Calgary, and Montreal, offering a fresh approach to local news that provides viewer-based content with original stories that reflect these communities.
|
•
|
100% achievement of our 2017 guidance on selected full-year metrics. See "Financial and Operating Guidance" for more information.
|
Rogers Communications Inc.
|
8
|
Fiscal 2017
|
•
|
Adjusted operating profit margin expansion of 80 basis points. This increase was primarily driven by Wireless, with a 50 basis point expansion, and Cable, with an 80 basis point expansion.
|
•
|
Achieved our best annual Wireless service revenue growth and adjusted operating profit growth since 2009.
|
•
|
Achieved an employee engagement score of 79%.
|
•
|
Recognized in November 2017, for the fifth year in a row, as one of Canada's Top 100 Employers for 2018, and in January 2017, for the eighth year in a row, as a Top Employer for Young People, by the editors of Canada’s Top 100 Employers.
|
•
|
Selected as one of Canada's Best Diversity Employers for 2017, for the fifth year in a row, in a report released by Mediacorp Inc. in March 2017, in recognition of our efforts to promote diversity and inclusion in the workplace.
|
•
|
Named one of Canada’s Greenest Employers for 2017, for the fifth year in a row, by the editors of Canada’s Top 100 Employers in April 2017.
|
•
|
Named one of the 50 Best Corporate Citizens in Canada by Corporate Knights in June 2017, an award that recognizes employers that incorporate social, economic, and ecological benefits and costs in their normal course of business.
|
•
|
Invested $64 million in our communities through cash and in-kind donations to various charitable organizations and causes.
|
•
|
Launched the Ted Rogers Scholarship Fund and awarded 307 scholarships through our community partners and to dependents of our hard-working employees. This program also included 65 grants to community organizations across the country that provide innovative and educational programs for youth.
|
•
|
Released Rogers’ 2017 Transparency Report, which outlines how we share customer information in response to requests from legal authorities. We are committed to protecting our customers’ privacy and fulfilling our obligation as a good corporate citizen to follow the law and contribute to public safety.
|
•
|
Launched a new annual employee giving campaign, Give Together Month, where Rogers matched employee donations to the charity of their choice, up to $1,000 each. In total, $2.2 million was raised.
|
•
|
Expanded Connected for Success, a program offering access to affordable, high-speed Internet to 150,000 low-income Canadian households through 200 subsidized housing partners across our cable footprint.
|
•
|
Declared a quarterly dividend of $0.48 per each outstanding Class A Voting Share and Class B Non-Voting Share during 2016.
|
•
|
Issued and fully hedged the foreign exchange risk on US$500 million ($671 million) ten-year 2.9% senior notes.
|
•
|
Ended the year with approximately $2.7 billion of available liquidity, comprised of $2.4 billion available under our bank credit facilities and $0.25 billion available under our $1.05 billion accounts receivable securitization program.
|
•
|
100% achievement of our 2016 guidance on selected full-year metrics and achieved our best subscriber metrics in recent years.
|
•
|
Launched a number of tools and offerings with a focus on becoming a leader in self-serve options. We saw a 56% increase in self-serve transactions on the Rogers brand and a 9% increase on the Fido brand this year.
|
•
|
Expanded Roam Like Home to over 100 destinations in Europe, Asia, Mexico, South America, and Latin America, further simplifying how Wireless consumers use the Internet, make calls, and send texts and e-mails. Customers have access to their Canadian plan features while traveling, all at a relatively low cost. Furthermore, we broadened the availability of Roam Like Home by making it available on most consumer Wireless plans.
|
•
|
Introduced Fido Roam, allowing customers to use existing data, talk, and text from their Fido Pulse plans while traveling, for a low daily price. Fido Roam covers all of the US along with destinations in Europe, the Caribbean, South and Central America, the Middle East, Oceania, South Africa, and Asia.
|
Rogers Communications Inc.
|
9
|
Fiscal 2017
|
•
|
Launched Data Manager, a new tool that gives families the ability to manage their wireless data in real-time and provide worry-free control.
|
•
|
Launched Rogers EnRoute and Fido EnRoute, tools that save our customers time by giving them the ability to track, in real-time, when a technician will arrive for an installation or service call.
|
•
|
Launched DeviceAdvice and Message Me for our Fido customers. DeviceAdvice is a tool allowing customers to self-diagnose device issues and receive quick, personalized advice so they can maximize the performance of their device. Message Me allows customers to contact Fido customer representatives via Facebook Messenger on their mobile or desktop device.
|
•
|
Launched Rogers Assist, an app that allows all Rogers employees to submit an issue to customer care on behalf of their friends, family, and acquaintances.
|
•
|
Collaborated with a Canadian app creator that helps people with cognitive special needs, to create how-to videos for using a wireless device. Rogers.com now features five videos with easy-to-follow instructions and closed-captioning that explain how to perform key functions related to your Rogers wireless device like sending a text or picture, connecting to a Wi-Fi network, and making a phone call.
|
•
|
Expanded our Connected for Success program to more communities across Ontario, New Brunswick, and island of Newfoundland. This program provides affordable Internet services to people that live in non-profit housing. This expansion more than doubled the number of eligible households across the country to up to 150,000.
|
•
|
Released Rogers’ 2016 Transparency Report, our annual report on how we share customer information in response to requests from legal authorities. We are committed to protecting our customers’ privacy and fulfilling our obligation as a good corporate citizen to follow the law and contribute to public safety.
|
•
|
Launched Rogers Unison, a new mobile solution that brings the features of a traditional landline office phone to one’s mobile phone. We were the first telecommunications provider in North America to launch such a solution. This solution allows our customers to stay connected across multiple devices regardless of their location, allowing them to better serve their customers.
|
•
|
Launched Rogers Public Cloud, a new data sovereign, cloud infrastructure as-a-service solution that lets businesses securely manage critical data, applications, servers, systems software, and network resources over the Internet.
|
•
|
Launched Rogers Ignite Gigabit Internet to small business customers in Ontario, enabling them to leverage blazing-fast Internet speeds and unlimited data usage to improve productivity with faster file transfers, real-time data backup for business continuity, and high-quality video conferencing. The increased bandwidth also means businesses can connect more users online simultaneously, without compromising Internet performance.
|
•
|
Announced certain Internet of Things (IoT) as-a-service offerings to simplify the process of managing complex IoT solutions. Two of the first solutions being offered as a service include Farm & Food Monitoring and Level Monitoring.
|
•
|
Launched Business App Market, a new platform for small businesses to manage multiple cloud-based applications.
|
•
|
Recognized again as a Top Employer for 2017 in November 2016 and as a Top Employer for Young People in January 2017 by the editors of Canada’s Top 100 Employers.
|
•
|
Selected as one of Canada's Best Diversity Employers for 2016 in a report released by Mediacorp Inc. in March 2016 for recognition of our efforts to promote diversity and inclusion in the workplace.
|
•
|
Named one of Canada’s Greenest Employers for 2016 by the editors of Canada’s Top 100 Employers in April 2016, an award that recognizes employers with innovative environmental programs and earth-friendly policies that actively involve their employees.
|
•
|
Named one of the 50 Best Corporate Citizens in Canada by Corporate Knights in June 2016, an award that recognizes employers that incorporate social, economic, and ecological benefits and costs in their normal course of business.
|
•
|
Launched an intensive leadership program for more than 160 executives.
|
•
|
Expanded our national onboarding program to include 1,400 call centre employees and launched a mobile onboarding solution for part-time employees.
|
•
|
Continued to modernize our workplace to help us be more productive to better serve our customers.
|
Rogers Communications Inc.
|
10
|
Fiscal 2017
|
•
|
For the second consecutive year, Sportsnet solidified its position as the destination for Canadian sports fans by closing out 2016 as Canada’s number-one sports media brand. Sportsnet won eight months in 2016 and has widened the gap from its closest competitor with a 42% lead in average minute audience and a 39% lead in audience share. Sportsnet.ca reached an all-time high with 4.25 million unique visitors in October 2016, which beats our closest English-language competitor, and marks a 7% increase year on year. The 2016 Blue Jays regular season was the most-watched Blue Jays season in network history, reaching 20 million Canadians. In November 2016, Sportsnet delivered its largest World Series audience ever, with an average audience of 2.66 million viewers, which more than doubled Sportsnet's previous all-time most-watched World Series game. Furthermore, Sportsnet achieved great success with the World Cup of Hockey, with an average audience of 1.1 million viewers for the entire tournament, and reached 15.5 million Canadians throughout the tournament.
|
•
|
Launched Sportsnet NOW, one of the first mainstream sports TV channels in North America to be available direct to consumers, as well as Sportsnet 4K, which delivered all regular season Toronto Blue Jays home games in 4K.
|
•
|
Broadcasted the first live NBA, NHL, and MLB games in 4K.
|
•
|
Introduced the new NextBox 4K PVR, giving customers the ability to record up to eight 4K programs at one time and store up to 90 hours of 4K entertainment.
|
•
|
Successfully completed the second year of our exclusive 12-year national NHL Agreement while bringing the NHL to more Canadians than ever before. Rogers Hometown Hockey returned for a third season during the 2016-2017 NHL season with hockey festivities and entertainment.
|
•
|
Continued our commitment to deliver world-class Canadian content by adding two new original scripted series to our City lineup, with the millennial-focused comedy
Second Jen
and drama
Bad Blood: The Vito Rizzuto Story
.
|
•
|
Extended our Ignite Gigabit Internet coverage to cover Rogers’ entire cable footprint, such that we offer the fastest widely available Internet speeds in our marketplace.
|
•
|
Announced the long-term strategic partnership with Comcast Corporation (Comcast) to bring our customers a world-class IPTV service with the most advanced features available in the market today by deploying Comcast's X1 IP-based video platform.
|
•
|
Extended our 700 MHz LTE network reach to 91% of Canada's population in 2016, compared to 78% in 2015. Extended our overall LTE network reach to 95% of Canada's population in 2016, compared to 93% in 2015.
|
•
|
Installed a new suite of technology and enterprise solutions to enable the most connected arena in Canada, the Rogers Place in Edmonton.
|
•
|
Successfully worked as one company, showing we can bring our entire team together to achieve our goals. We demonstrated this by bringing Rogers Hometown Hockey to 150,000 Canadians, introducing low-cost Internet for more community housing residents, and bringing viewers our strongest primetime lineup ever, while delivering a strong year of NHL and Sportsnet.
|
•
|
Issued and fully hedged the foreign exchange risk on $1.3 billion of senior notes, consisting of US$700 million ten year 3.625% senior notes and US$300 million thirty year 5.00% senior notes.
|
•
|
Increased our annualized dividend rate in January 2015 by 5% to $1.92 per Class A Voting Share and Class B Non-Voting Share and declared a quarterly dividend of $0.48 per each outstanding Class A Voting Share and Class B Non-Voting Share during 2015.
|
•
|
Ended the year with approximately $3.3 billion of available liquidity, comprised of $0.01 billion cash on hand, $3.0 billion available under our bank credit facilities and $0.25 billion available under our $1.05 billion accounts receivable securitization program.
|
•
|
Expanded Roam Like Home to 75 countries with the addition of Mexico, the Caribbean, and South and Central America, further simplifying how our Wireless consumers use the Internet, make calls, and send texts and emails with their Rogers Share Everything plans.
|
Rogers Communications Inc.
|
11
|
Fiscal 2017
|
•
|
Reduced the number of customer complaints by more than 26% over the 12-month period ended July 31, 2015 according to the Commissioner for Complaints for Telecommunications Services (CCTS) December 2015 annual report. This builds off our customer complaint reduction of almost 32% for the prior 12-month period. As part of our strategic plan, we are committed to putting our customers first, and while our work is far from over, this report shows our focus on customers is paying off and we are heading in the right direction.
|
•
|
Enhanced our Share Everything plans through the launch of new Share Everything+ plans. The new plans allowed customers to choose from one of three content experiences: Texture by Next Issue, shomi, or Spotify Premium.
|
•
|
Introduced customer care on Facebook Messenger, a global first in the telecommunications industry. With the tap of a screen or the click of a mouse, customers can now contact Rogers in real-time on Messenger, an environment where millions of Canadians already spend time every day.
|
•
|
Completed the purchase of a 50% interest in Glentel, previously Canada’s largest independent multicarrier of wireless and wireline products with several hundred Canadian retail outlets.
|
•
|
Launched Fido Home Internet in parts of Ontario, delivering simple, hassle-free plans and service that is easy to install and use. Customers can use their mobile phones to set up their connection so they do not have to wait for technicians to install their products.
|
•
|
Launched a new Rogers Platinum MasterCard with features including cashback reward points on all transactions, low annual fees, and no foreign exchange transactions fees.
|
•
|
Introduced a simplified customer bill for Rogers services, making it easier for customers to understand their spending and addressing the number one reason customers have historically called Rogers with questions. The new format makes usage details easier to understand, while creating a new layout and interactive graphical features so customers can more easily see how we calculated their bill. Our new bill is less complicated, is available across multiple platforms, and is an important step in our ongoing commitment to continuous improvement for our customers’ experiences.
|
•
|
Introduced a new Wireless Hardware Upgrade Program wherein customers now have the option to upgrade their wireless device online.
|
•
|
Unveiled a new look and feel, improved search and navigation capabilities, and accelerated response times for our online Community Forums. More customers want self-serve and our Community Forums are one of many ways our customers will be able to get the information they need quickly and easily.
|
•
|
Launched our Retail Academy, an employee training program designed to further enhance how we serve and support our customers in our branded retail stores. In addition, we started refreshing our brand at our national retail stores and transitioning certain other locations to a new design concept, which includes a connected Home Zone lounge where customers can experience Rogers Ignite Internet bundles and Smart Home Monitoring.
|
•
|
Increased the speed and responsiveness of our rogers.com and fido.ca websites. In addition, we launched new, easier-to-navigate homepages and mobile-friendly product landing and promotion pages to provide customers with an improved digital experience.
|
•
|
Enhanced and simplified our customer-facing Integrated Voice Response (IVR) system along with our technical support transfer process to minimize the customers’ time from when they dial Rogers to when they talk to a live agent.
|
•
|
Released Rogers’ 2015 Transparency Report, our annual report on how we share customer information in response to requests from legal authorities.
|
•
|
Launched Managed Wi-Fi as a Service, a suite of services that gives business customers the ability to easily manage and monitor their network and performance from any location and tailor alerts by activity.
|
•
|
Introduced “leapfrog” global cybersecurity solutions as a service to help protect Canadian businesses. Through a partnership with Trustwave Inc., a global leader in cybersecurity services, our new suite of cybersecurity solutions will give businesses access to a team of experts who will help them manage real-time monitoring of security events, proactively run cybersecurity diagnostics, and maintain their network infrastructure.
|
•
|
Introduced Rogers Voice with Skype for Business, a cloud-based tool that lets businesses experience the commercial version of Skype with enhanced features and better communication with their teams, partners, and customers.
|
•
|
Expanded our third Toronto data centre, doubling our available floor space capacity. This next generation data centre is ‘Uptime Certified Tier III’ for design and construction, providing customers with best-in-class uptime guarantees for their
|
Rogers Communications Inc.
|
12
|
Fiscal 2017
|
•
|
Deployed the GSMA Embedded SIM Specification of the M2M World Alliance, a global coalition of telecommunications providers. This standard allows for remote wireless provisioning of machine-to-machine (M2M) devices, significantly reducing the cost and time for enabling globally connected devices.
|
•
|
Recognized, along with AT&T, Verizon, and Vodafone, as a world leader in the M2M retail space by prominent global market research firm Research and Markets. Rogers is a Canadian leader in M2M and this recognition affirms our belief that our in-market solutions for business are world class.
|
•
|
Recognized again as a Top Employer for 2016 in November 2015 and as a Top Employer for Young People in May 2015 by the editors of Canada’s Top 100 Employers.
|
•
|
Selected as one of Canada's Best Diversity Employers for 2015 in a report released by Mediacorp Inc. in March 2015 for recognition of our efforts to promote diversity and inclusion in the workplace.
|
•
|
Named one of Canada’s Greenest Employers for 2015 by the editors of Canada’s Top 100 Employers in April 2015, an award that recognizes employers with innovative environmental programs and earth-friendly policies that actively involve their employees.
|
•
|
Named one of the 50 Best Corporate Citizens in Canada by Corporate Knights in June 2015, an award that recognizes employers that incorporate social, economic, and ecological benefits and costs in their normal course of business.
|
•
|
Sportsnet was the most-watched televised sports brand in Canada, as verified by data collected by Numeris, a leading broadcast measurement source, between May 2014 and May 2015. Following a year of double-digit audience growth and record-setting ratings, for the first time in its 17-year history, more Canadians tuned in to Sportsnet channels than to the competition. In October 2015, driven by our Toronto Blue Jays' unforgettable 2015 MLB Postseason and the launch of the 2015-2016 NHL season, Sportsnet recorded its best month ever - and the best month ever for a sports TV network in Canada - for audience share, based on data collected by Numeris.
|
•
|
Introduced Rogers Ignite Gigabit Internet.
|
•
|
Launched 4K TV and 4K set-top boxes.
|
•
|
Successfully completed the first year of our exclusive 12-year national NHL Agreement while bringing the NHL to more Canadians than ever before. We provided Canadians with new ways to experience games, through NHL GameCentre Live and NHL GamePlus, and on multiple platforms such as their computer, mobile phone, or tablet. Rogers Hometown Hockey has returned for a second season and is rolling into 24 new Canadian communities during the 2015-2016 NHL season with even more hockey festivities and entertainment.
|
•
|
Acquired exclusive Canadian English-language multimedia rights for Sportsnet to the 2016 World Cup of Hockey, including television, online, and mobile rights for every game of the highly-anticipated tournament.
|
•
|
Announced a five-year renewal agreement through 2020 as the title sponsor for the Rogers Cup professional tennis tournament, with Sportsnet garnering coverage rights for a comprehensive suite of televised, online, mobile, and multimedia platforms. The Rogers Cup is a renowned international professional tennis tournament and supports a key pillar in our strategy of delivering world-class content and experiences to Canadians.
|
•
|
Expanded Texture by Next Issue for French-speaking and bilingual Canadians by adding 20 Québec-based French-language magazines to the more than 170 Canadian and US English magazines already on offer. In addition to providing full magazine issues, we also introduced more personalization for readers and more opportunity to search for and discover specific articles and stories of interest.
|
•
|
Completed our strategic acquisition of wireless provider Mobilicity and completed our transaction to acquire Shaw’s AWS-1 spectrum licences. We added and activated 20 MHz of contiguous AWS-1 spectrum adjacent to our existing 20 MHz of AWS-1 holdings across all of British Columbia and Alberta, and added 10 MHz of contiguous AWS-1 spectrum across Southern Ontario, the largest population centre in Canada. We also divested certain non-contiguous AWS-1 spectrum licences to WIND Mobile Corp.
|
Rogers Communications Inc.
|
13
|
Fiscal 2017
|
•
|
Augmented our extensive 2500 MHz spectrum holdings during the recent 2500 MHz spectrum auction. We successfully executed a tactical fill-in and top-up strategy to acquire nearly our entire allowable spectrum at an average cost of $0.10/MHz/pop, lower than other auction participants. We now hold 40 MHz of contiguous, paired 2500 MHz spectrum across nearly all of Canada, as well as an additional 20 MHz of unpaired 2500 MHz spectrum in many key population areas.
|
•
|
Launched new Rogers Ignite broadband Internet-based bundled offerings with new unlimited usage options and value-added content.
|
•
|
Extended wireless network coverage in even more rural markets within Canada.
|
•
|
Named in 2015 as both Canada’s Fastest ISP and Canada’s Fastest Mobile Network by Ookla, a global leader in broadband speed testing.
|
•
|
Released independent testing research from SamKnows, an independent broadband performance company, dated February 2015 confirming that Rogers’ broadband Internet customers continue to enjoy fast and reliable upload and download service, delivered at 100 percent or more, on average, of advertised speeds, even during peak network hours.
|
•
|
Rogers’ wireless network was the first in Canada to be Category 6-enabled, allowing customers in select communities across Ontario and British Columbia to enjoy faster download speeds and a higher quality video experience on Category 6-enabled smartphones and tablets.
|
•
|
Extended Rogers Smart Home Monitoring services to residents in Vancouver and the Lower Mainland, British Columbia, and Calgary and Edmonton, allowing them to connect, protect, and manage what is happening at home using their mobile devices or computers.
|
•
|
First in Canada to launch Voice over LTE (VoLTE) technology, giving our Wireless customers across the country access to higher-quality high-definition voice and video calls, faster call setup and connection times, and the ability to simultaneously place calls, browse the web, and stream video at considerably greater LTE speeds.
|
•
|
Introduced complimentary Wi-Fi service throughout the Rogers Centre, our multi-purpose event venue and home to the Toronto Blue Jays, in yet another example of Rogers' commitment to deliver the best-connected experience to Canadians.
|
•
|
Became the first company in the world to launch programmatic advertising for NHL GameCentre Live, whereby Internet users will see advertising banners (created and placed in real-time, with the help of Google) for recent events, such as a scored goal in a hockey game, and be encouraged to watch the goal.
|
•
|
Successfully worked as one company, showing we can bring our entire team together to achieve our goals. We demonstrated this through the successful launch of our NHL Agreement, utilizing Wireless, Cable, and Media to bring the NHL to Canadians, and our launch of new initiatives such as Roam Like Home and Rogers Ignite.
|
Rogers Communications Inc.
|
14
|
Fiscal 2017
|
About Rogers
|
25
|
|
Understanding Our Business
|
29
|
|
Wireless
|
29
|
|
Cable
|
29
|
|
Business Solutions
|
29
|
|
Media
|
29
|
|
Products and Services
|
29
|
|
Wireless
|
29
|
|
Cable
|
29
|
|
Media
|
30
|
|
Other
|
30
|
|
Other Investments
|
30
|
|
Competition
|
31
|
|
Wireless
|
31
|
|
Cable
|
31
|
|
Media
|
32
|
|
Industry Trends
|
33
|
|
Our Strategy, Key Performance Drivers, and Strategic Highlights
|
34
|
|
Capability to Deliver Results
|
39
|
|
Employees
|
54
|
|
Commitments and Contractual Obligations
|
68
|
|
•
|
transmitters, microwave systems, antennae, buildings, and electronic transmission, receiving, and processing accessories and other wireless network equipment (including switches, radio channels, base station equipment, microwave facilities, and cell equipment);
|
•
|
coaxial and fibre optic cables, set-top terminals and cable modems, electronic transmission, receiving, processing, digitizing, and distributing equipment, IP routers, data storage servers and network management equipment, and microwave equipment and antennae; and
|
•
|
radio and television broadcasting equipment (including television cameras and television and radio production facilities and studios).
|
Rogers Communications Inc.
|
15
|
Fiscal 2017
|
Declaration date
|
Record date
|
Payment date
|
Dividend per share
(dollars)
|
|
Dividends paid
(in millions of dollars)
|
|
|
|
|
|
|
||
January 26, 2017
|
March 13, 2017
|
April 3, 2017
|
0.48
|
|
247
|
|
April 18, 2017
|
June 12, 2017
|
July 4, 2017
|
0.48
|
|
247
|
|
August 17, 2017
|
September 15, 2017
|
October 3, 2017
|
0.48
|
|
247
|
|
October 19, 2017
|
December 11, 2017
|
January 2, 2018
|
0.48
|
|
247
|
|
|
|
|
|
|
||
January 27, 2016
|
March 13, 2016
|
April 1, 2016
|
0.48
|
|
247
|
|
April 18, 2016
|
June 12, 2016
|
July 4, 2016
|
0.48
|
|
247
|
|
August 11, 2016
|
September 11, 2016
|
October 3, 2016
|
0.48
|
|
247
|
|
October 20, 2016
|
December 12, 2016
|
January 3, 2017
|
0.48
|
|
247
|
|
|
|
|
|
|
||
January 28, 2015
|
March 13, 2015
|
April 1, 2015
|
0.48
|
|
247
|
|
April 21, 2015
|
June 12, 2015
|
July 2, 2015
|
0.48
|
|
247
|
|
August 13, 2015
|
September 11, 2015
|
October 1, 2015
|
0.48
|
|
247
|
|
October 22, 2015
|
December 11, 2015
|
January 4, 2016
|
0.48
|
|
247
|
|
Rogers Communications Inc.
|
16
|
Fiscal 2017
|
•
|
Broadcasting Act (Canada);
|
•
|
Telecommunications Act (Canada); and
|
•
|
Radiocommunication Act (Canada).
|
•
|
qualified to hold or obtain any cable television, broadcasting, or telecommunications licence or authorized to operate a similar entity under the Laws; and
|
•
|
not in breach of the Laws or any licences issued to us or to any of our Canadian subsidiaries, associates, or affiliates under the Laws.
|
Issuance
|
S&P
|
Moody’s
|
Fitch
|
Corporate credit issuer default rating
1
|
BBB+ with a stable outlook
|
Baa1 with a stable outlook
|
BBB+ with a stable outlook
|
Senior unsecured debt
1
|
BBB+ with a stable outlook
|
Baa1 with a stable outlook
|
BBB+ with a stable outlook
|
US commercial paper
2
|
A-2
|
P-2
|
N/A
3
|
1
|
Unchanged for the year.
|
2
|
Unchanged since the inception of our US CP program in the first quarter of 2017.
|
3
|
We did not seek a rating from Fitch for our short-term obligations in 2017
.
|
Rogers Communications Inc.
|
17
|
Fiscal 2017
|
RCI.B
|
|
|
|
|
||||
Month
|
High
($)
|
|
Low
($)
|
|
Close
($)
|
|
Volume
|
|
2017/01
|
57.66
|
|
50.44
|
|
56.45
|
|
15,873,108
|
|
2017/02
|
57.77
|
|
55.57
|
|
55.76
|
|
21,142,080
|
|
2017/03
|
59.09
|
|
55.25
|
|
58.80
|
|
28,925,165
|
|
2017/04
|
63.78
|
|
58.34
|
|
62.59
|
|
18,048,432
|
|
2017/05
|
63.32
|
|
61.15
|
|
63.00
|
|
20,852,256
|
|
2017/06
|
63.58
|
|
60.54
|
|
61.25
|
|
19,534,935
|
|
2017/07
|
66.32
|
|
60.40
|
|
64.83
|
|
17,667,175
|
|
2017/08
|
65.71
|
|
63.76
|
|
65.19
|
|
12,679,283
|
|
2017/09
|
65.16
|
|
62.35
|
|
64.34
|
|
15,835,661
|
|
2017/10
|
67.99
|
|
64.15
|
|
66.94
|
|
15,347,903
|
|
2017/11
|
70.08
|
|
65.95
|
|
66.96
|
|
14,414,392
|
|
2017/12
|
67.03
|
|
63.35
|
|
64.05
|
|
16,212,438
|
|
|
|
|
|
|
||||
RCI.A
|
|
|
|
|
||||
Month
|
High
($)
|
|
Low
($)
|
|
Close
($)
|
|
Volume
|
|
2017/01
|
57.88
|
|
51.05
|
|
57.12
|
|
41,217
|
|
2017/02
|
58.96
|
|
56.64
|
|
56.64
|
|
18,061
|
|
2017/03
|
59.40
|
|
56.10
|
|
59.40
|
|
17,438
|
|
2017/04
|
63.41
|
|
59.50
|
|
63.17
|
|
17,278
|
|
2017/05
|
63.51
|
|
62.00
|
|
63.15
|
|
6,678
|
|
2017/06
|
64.05
|
|
61.10
|
|
61.66
|
|
45,004
|
|
2017/07
|
66.58
|
|
60.79
|
|
65.65
|
|
10,279
|
|
2017/08
|
65.72
|
|
64.25
|
|
65.50
|
|
7,725
|
|
2017/09
|
65.20
|
|
62.39
|
|
64.75
|
|
12,519
|
|
2017/10
|
68.24
|
|
64.25
|
|
67.72
|
|
23,647
|
|
2017/11
|
69.99
|
|
66.29
|
|
66.76
|
|
22,350
|
|
2017/12
|
67.16
|
|
63.57
|
|
63.96
|
|
30,144
|
|
Rogers Communications Inc.
|
18
|
Fiscal 2017
|
Rogers Communications Inc.
|
19
|
Fiscal 2017
|
Name
|
Position
|
Directors
|
|
Edward S. Rogers
(2)(3)(7)(8)(9)
|
Director, Chair of RCI, and Chair of the Rogers Control Trust
|
Philip B. Lind, C.M.
(9)
|
Director, Vice Chair of RCI, and member of the Advisory Committee of the Rogers Control Trust
|
Melinda M. Rogers
(3)(6)(7)(8)(9)
|
Director, Deputy Chair of RCI, and Vice Chair of the Rogers Control Trust
|
Joe Natale
|
Director, President and Chief Executive Officer
|
Bonnie R. Brooks, C.M.
(5)
|
Director
|
Robert K. Burgess
(1)(10)
|
Director
|
John H. Clappison, FCPA, FCA
(1)(4)(6)
|
Director
|
Robert Dépatie
(3)(5)
|
Director
|
Robert J. Gemmell
(1)
|
Director
|
Alan D. Horn, CPA, CA
(2)(6)(7)(9)
|
Director and member of the Advisory Committee of the Rogers Control Trust
|
John A. MacDonald
(1)(3)(5)(11)
|
Director
|
Isabelle Marcoux
(4)(5)
|
Director
|
The Hon. David R. Peterson, PC, QC
(3)(6)
|
Director
|
Loretta A. Rogers
(8)(9)
|
Director and member of the Advisory Committee of the Rogers Control Trust
|
Martha L. Rogers
(8)(9)
|
Director and member of the Advisory Committee of the Rogers Control Trust
|
Charles Sirois, C.M.
(2)(4)(7)
|
Lead Director
|
Executive Officers
|
|
Joe Natale
|
Director, President and Chief Executive Officer
|
Rick A. Brace
|
President, Media
|
Lisa L. Durocher
|
Chief Digital Officer
|
Jorge Fernandes
|
Chief Technology Officer
|
Philip J. Hartling
|
Interim President, Consumer
|
John A. Hill
|
Chief Information Officer
|
David P. Miller
|
Chief Legal and Corporate Affairs Officer and Secretary
|
Dean Prevost
|
President, Enterprise
|
James M. Reid
|
Chief Human Resources Officer
|
Anthony Staffieri, FCPA, FCA
|
Chief Financial Officer
|
(1)
|
Denotes member of Audit and Risk Committee
|
(2)
|
Denotes member of Executive Committee
|
(3)
|
Denotes member of Nominating Committee
|
(4)
|
Denotes member of Corporate Governance Committee
|
(5)
|
Denotes member of Human Resources Committee
|
(6)
|
Denotes member of Pension Committee
|
(7)
|
Denotes member of Finance Committee
|
(8)
|
Each of Edward S. Rogers, Loretta A. Rogers, Martha L. Rogers, and Melinda M. Rogers are immediate family members of each other and members of the family of the late Ted Rogers. For additional information, please see “Outstanding Shares and Main Shareholders” in RCI’s
2017
Information Circular available on SEDAR at sedar.com.
|
(9)
|
Voting control of RCI is held by the Rogers Control Trust. See “Outstanding Shares and Main Shareholders” in RCI’s
2017
Information Circular available on SEDAR at sedar.com. Each of the individuals that are noted above as holding positions with the Rogers Control Trust have held such positions since December 2008.
|
(10)
|
Mr. Burgess was a director of Syncapse Corp. ("Syncapse") prior to MNP Ltd. being appointed as a receiver of all the assets of Syncapse on July 23, 2013. A court approved sale was completed by the receiver on August 30, 2013.
|
(11)
|
Mr. MacDonald was a director of Magor Corporation (“Magor”) when it proactively filed a Notice of Intention to Make a Proposal pursuant to the provisions of the
Bankruptcy and Insolvency Act
on November 30, 2016. On July 11, 2017, Magor completed the sale of its wholly-owned subsidiary, Magor Communications Corp. (MCC), to N. Harris Computer Corporation. The transaction was approved by the Ontario Superior Court of Justice and Magor and MCC's creditors under the
Bankruptcy and Insolvency Act
. Magor ceased operations following the transaction.
|
Rogers Communications Inc.
|
20
|
Fiscal 2017
|
Rogers Communications Inc.
|
21
|
Fiscal 2017
|
Rogers Communications Inc.
|
22
|
Fiscal 2017
|
Rogers Communications Inc.
|
23
|
Fiscal 2017
|
Rogers Communications Inc.
|
24
|
Fiscal 2017
|
1.
|
Mr. Burgess was a director of Syncapse Corp. (Syncapse) prior to MNP Ltd. being appointed as a receiver of all the assets of Syncapse on July 23, 2013. A court-approved sale was completed by the receiver on August 30, 2013.
|
Rogers Communications Inc.
|
25
|
Fiscal 2017
|
2.
|
Mr. MacDonald was a director of Magor Corporation (Magor) when it proactively filed a Notice of Intention to Make a Proposal pursuant to the provisions of the
Bankruptcy and Insolvency Act
on November 30, 2016. On July 11, 2017, Magor completed the sale of its wholly-owned subsidiary, Magor Communications Corp. (MCC), to N. Harris Computer Corporation. The transaction was approved by the Ontario Superior Court of Justice and Magor and MCC's creditors under the
Bankruptcy and Insolvency Act.
Magor ceased operations following the transaction.
|
Rogers Communications Inc.
|
26
|
Fiscal 2017
|
•
|
overseeing reliable, accurate and clear policies and practices for the preparation of financial reports to shareholders
|
•
|
overseeing the design, implementation and review of internal controls - the necessary checks and balances must be in place
|
•
|
directly responsible for the qualifications, independence, appointment and oversight of the work of the external auditors - the shareholders’ auditors report directly to the Audit and Risk Committee (the “Committee”)
|
•
|
meeting with Rogers Communications Inc.’s (the “Company”) external and internal auditors and evaluating the effectiveness and independence of each
|
•
|
overseeing the establishment and maintenance of processes that ensure the Company is in compliance with both the laws and regulations that apply to it and its own policies
|
•
|
reviewing the annual strategic risk assessment, including management’s implementation of risk policies and actions to monitor and control major risk exposures
|
•
|
reviewing the Company’s business continuity and disaster recovery plans
|
•
|
receiving reports on, and approving, if appropriate, certain transactions with related parties
|
(i)
|
financial reporting processes and the integrity of financial statements provided by the Company to the public;
|
(ii)
|
the qualifications, independence, appointment and oversight of the work of the external auditors;
|
(iii)
|
the qualifications and performance of internal auditors;
|
(iv)
|
the Company’s accounting systems, financial controls and disclosure controls;
|
(v)
|
compliance with applicable legal and regulatory requirements; and
|
(vi)
|
the implementation of appropriate risk assessment systems to identify and manage principal risks of the Company’s business.
|
Rogers Communications Inc.
|
27
|
Fiscal 2017
|
(a)
|
Independence.
Each member shall be independent in accordance with applicable securities laws and based on the Company’s Director Material Relationship Standards and in such regard shall have no direct or indirect material relationship with the Company that, in the view of the Board, could reasonably interfere with the exercise of a member’s independent judgment.
|
(b)
|
Financially Literate.
Each member shall be financially literate or must become financially literate within a reasonable period of time after his or her appointment to the Committee. For these purposes, an individual is financially literate if he or she has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company’s financial statements. In addition, at least one member must be a financial expert as defined in accordance with applicable securities laws.
|
(c)
|
Commitment.
In addition to being a member of the Committee and of any audit committee of any affiliate of the Company, if a member of the Committee is also on the audit committee of more than two additional public companies, the Board or the Nominating Committee shall determine that such simultaneous service does not impair the ability of such member to serve effectively on the Committee.
|
Rogers Communications Inc.
|
28
|
Fiscal 2017
|
1.
|
Financial Reporting Process and Financial Statements
|
(a)
|
in consultation with the external auditors and the internal auditors, review the integrity of the Company’s financial reporting process, both internal and external, and any material issues as to the adequacy of the internal controls and any special audit steps adopted in light of material control deficiencies identified to it by the external or internal auditors or of which the Committee otherwise becomes aware;
|
(b)
|
review all material transactions and material contracts entered into by the Company (and any subsidiary) with any insider or related party of the Company, other than officer or employee compensation arrangements approved or recommended by the Human Resources Committee or director remuneration approved or recommended by the Corporate Governance Committee;
|
(c)
|
review and discuss with management and the external auditors the Company’s annual audited consolidated financial statements and its interim unaudited consolidated financial statements, and discuss with the external auditors the matters required to be discussed by generally accepted auditing standards in Canada and/or the United States, as applicable, as may be modified or supplemented, and for such purpose, receive and review the year-end report by the external auditors describing: (i) all critical accounting policies and practices used by the Company, (ii) all material alternative accounting treatments of financial information within generally accepted accounting principles that have been discussed with management of the Company, including the ramifications of the use of such alternative treatments and disclosures and the treatment preferred by the external auditors, and (iii) other material written communications between the external auditors and management, and discuss such annual report with the external auditors;
|
(d)
|
following completion of the annual audit, review with each of management, the external auditors and the internal auditors any significant issues, concerns or difficulties encountered during the course of the audit;
|
(e)
|
resolve disagreements between management and the external auditors regarding financial reporting;
|
(f)
|
review the interim quarterly and annual financial statements and press releases prior to the release of earnings information;
|
(g)
|
review emerging accounting issues and their potential impact on the Company’s financial reporting;
|
(h)
|
review and be satisfied that adequate procedures are in place for the review and timely disclosure of any public disclosure of financial information by the Company extracted or derived from the Company’s financial statements, other than the disclosure referred to in (f), and periodically assess the adequacy of those procedures;
|
(i)
|
meet separately, periodically, with management, with the internal auditors and with the external auditors; and
|
(j)
|
the interim consolidated financial statements, the Company’s disclosure under “Management's Discussion and Analysis” for interim periods and interim earnings press releases may be approved by the Committee on behalf of the Board of Directors, provided that such approval is subsequently reported to the Board of Directors at its next meeting.
|
2.
|
External Auditors
|
(a)
|
require the external auditors to report directly to the Committee;
|
(b)
|
be directly responsible for the selection, nomination, retention, termination and oversight of the work of the Company’s external auditors engaged for the purpose of preparing or issuing an auditor’s report or performing other audit, review or attest services for the Company, and in such regard recommend to the Board the external auditors to be nominated for approval by the shareholders. A formal review of the qualifications, expertise, resources and the overall performance of the external auditors is conducted annually. A comprehensive review of the external auditors is conducted at least every five years and findings are presented to the Board;
|
(c)
|
recommend to the Board the compensation of the external auditors;
|
(d)
|
pre-approve all audit engagements and the provision by the external auditors of all non-audit services, including fees and terms for all audit engagements and non-audit engagements, and in such regard the Committee may establish the types of non-audit services the external auditors shall be prohibited from providing and shall establish the types of audit, audit-related and non-audit services for which the Committee will retain the external auditors. The Committee may delegate to one or more of its members the authority to pre-approve non-audit services, provided that any such delegated pre-approval shall be exercised in accordance with the types of particular non-audit services authorized by the Committee to be provided by the external auditor and the exercise of such delegated pre-approvals shall be presented to the full Committee at its next scheduled meeting following such pre-approval;
|
(e)
|
review and approve the Company’s policies for the hiring of partners and employees and former partners and employees of the external auditors;
|
(f)
|
review the annual audit plan with the external auditors;
|
(g)
|
consider, assess and report to the Board with regard to the independence and performance of the external auditors, including an evaluation of the lead partner and consideration of rotation of such lead partner and the audit firm itself; and
|
(h)
|
request and review a report by the external auditors, to be submitted at least annually, regarding the auditing firm’s relationships with the Company, internal quality control procedures, any material issues raised by the most recent internal quality control review, or peer review, of the auditing firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the external auditors, and any steps taken to deal with any such issues.
|
Rogers Communications Inc.
|
29
|
Fiscal 2017
|
3.
|
Internal Auditors
|
(a)
|
review and approve the internal audit charter annually;
|
(b)
|
approve the annual internal audit plan and discuss internal audit’s mandate with the Chief Audit Executive, including the staffing, responsibilities and budgets;
|
(c)
|
obtain periodic reports from the Chief Audit Executive regarding internal audit findings and the Company’s progress in remedying any significant audit findings; and
|
(d)
|
review the scope, responsibilities and effectiveness of the internal audit team, its independence from management, its credentials, its resources and its working relationship with the external auditors.
|
4.
|
Accounting Systems, Internal Controls, and Disclosure Controls
|
(a)
|
oversee management’s design and implementation of and reporting on internal controls; receive and review reports from management, the internal auditors and the external auditors with regard to the reliability and effective operation of the Company’s accounting system and internal controls;
|
(b)
|
review with senior management the controls and procedures adopted by the Company to confirm that material information about the Company and its subsidiaries that is required to be disclosed under applicable law or stock exchange rules is disclosed within the required time periods;
|
(c)
|
review and discuss with management, the external auditors and internal audit compliance with the Company’s Disclosure Policy by Directors, Officers and other management personnel;
|
(d)
|
review with senior management the adequacy of the internal controls that have been adopted by the Company to safeguard assets from loss and unauthorized use, to prevent, deter and detect fraud, and to verify the accuracy of the financial records and review any special audit steps adopted in light of material weaknesses or significant deficiencies; and
|
(e)
|
review disclosures made to the Committee by the Chief Executive Officer and Chief Financial Officer during their certification process for applicable securities law filings about any significant deficiencies and material weaknesses in the design or operation of the Company’s internal control over financial reporting that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information required to be disclosed by the Company in the reports that it files or submits under U.S. federal securities law or applicable Canadian federal and provincial legislation and regulations within the required time periods, and any fraud, whether or not material, involving management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
5.
|
Legal and Regulatory Requirements
|
(a)
|
receive and review timely analysis by management of significant issues relating to public disclosure and reporting;
|
(b)
|
review, prior to finalization, periodic public disclosure documents containing financial information, including Management’s Discussion and Analysis and the Annual Information Form;
|
(c)
|
review disclosures related to the Committee required to be included in the Company’s continuous disclosure filings;
|
(d)
|
review with the Company’s Chief Legal Officer legal compliance matters, significant litigation and other legal matters that could have a significant impact on the Company’s financial statements; and
|
(e)
|
assist the Board in the oversight of compliance with legal and regulatory requirements.
|
6.
|
Risk Management
|
(a)
|
annual strategic risk assessment identifying principal risks and their potential impact on the Company’s ability to achieve its business objectives;
|
(b)
|
processes for identifying, assessing and managing risks;
|
(c)
|
major risk exposures and trends from all areas (e.g. information security, financial, physical security, new business initiatives) and management’s implementation of risk policies and procedures to monitor and control such exposures;
|
(d)
|
business continuity plans and disaster recovery plans;
|
(e)
|
insurance coverage maintained by the Company at least annually; and
|
(f)
|
other risk management matters from time to time as the Committee may consider appropriate or as the Board may specifically direct.
|
7.
|
Additional Responsibilities
|
(a)
|
establish procedures and policies for:
|
(i)
|
the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters, and
|
(ii)
|
the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters;
|
(b)
|
prepare and review with the Board an annual performance evaluation of the Committee;
|
(c)
|
review the adequacy of staffing of key financial functions and management’s plans for improvements;
|
(d)
|
review earnings guidance provided to analysts and rating agencies;
|
(e)
|
periodically review with senior management the status of significant taxation matters;
|
(f)
|
report regularly to the Board, including with regard to matters such as the quality or integrity of the Company’s financial statements, compliance with legal or regulatory requirements, the performance of the internal audit function, the performance of the risk management process, and the performance and independence of the external auditors; and
|
(g)
|
review and reassess the adequacy of the Committee’s Mandate on an annual basis.
|
Rogers Communications Inc.
|
30
|
Fiscal 2017
|
Mr. Clappison (Chair)
|
Chartered Professional Accountant, Chartered Accountant; former Greater Toronto Area Managing Partner of PricewaterhouseCoopers LLP
|
Mr. Gemmell
|
Former President and Chief Executive Officer of Citigroup Global Markets Canada. 25 years as an investment banker in the United States and in Canada.
|
Mr. Burgess
|
Former Chairman and Chief Executive Officer of Macromedia, Inc.; former Director and CEO of Alias Research, Inc.
|
Mr. MacDonald
|
Former President of Enterprise Division of MTS Allstream; former President and COO of Bell Canada and former CEO of NBTel
|
(a)
|
Annually management provides the Audit and Risk Committee with a list of the audit-related and non-audit services that are anticipated to be provided during the year for pre-approval. The Audit and Risk Committee reviews the services with the auditor and management and considers whether the provision of the service is compatible with maintaining the auditor’s independence.
|
(b)
|
Management may engage the auditor for specific engagements that are included in the list of pre-approved services referred to above if the estimated fees do not exceed $500,000 per engagement per quarter.
|
(c)
|
The Audit and Risk Committee delegates authority to the Chair of the Audit and Risk Committee to approve requests for services not included in the pre-approved list of services or for services not previously pre-approved by the Audit and Risk Committee. Any services approved by the Chair will be reported to the full Audit and Risk Committee at the next meeting.
|
(d)
|
A review of all audit and non-audit services and fees rendered to the Company by KPMG LLP is reviewed each quarter by the Audit and Risk Committee.
|
Rogers Communications Inc.
|
31
|
Fiscal 2017
|
Auditors’ Fees
|
2017
|
2016
|
||||||
$
|
%
|
$
|
%
|
|||||
Audit Fees
(1)
|
5,999,395
|
|
83.4
|
%
|
5,337,800
|
|
76.2
|
%
|
Audit-Related Fees
(2)
|
1,105,826
|
|
15.4
|
%
|
996,420
|
|
14.2
|
%
|
Tax Fees
(3)
|
78,352
|
|
1.1
|
%
|
83,110
|
|
1.2
|
%
|
All Other Fees
(4)
|
8,694
|
|
0.1
|
%
|
590,107
|
|
8.4
|
%
|
Total
|
7,192,267
|
|
100.0
|
%
|
7,007,437
|
|
100.0
|
%
|
(1)
|
Consists of fees related to audits, prospectuses, registration statements and other filings with various regulatory authorities, quarterly reviews of interim financial statements, audit procedures on new accounting standards not yet effective, and consultations related to accounting matters impacting the consolidated financial statements.
|
(2)
|
Consists primarily of pension plan audits, audits and reviews of subsidiaries for statutory or regulatory reporting, French translation of certain filings with regulatory authorities, other assurance engagements, due diligence services in respect of potential acquisitions, and consultations regarding accounting standards not yet effective.
|
(3)
|
Consists of fees for tax consultation and compliance services, including indirect taxes.
|
(4)
|
Consists mainly of fees for operational advisory and risk management services.
|
Rogers Communications Inc.
|
32
|
Fiscal 2017
|
•
|
transactions are properly authorized and recorded;
|
•
|
financial records are reliable and form a proper basis for the preparation of consolidated financial statements; and
|
•
|
the assets of Rogers Communications Inc. and its subsidiaries are properly accounted for and safeguarded.
|
"Joe Natale"
|
|
"Anthony Staffieri"
|
|
Joe Natale
|
|
Anthony Staffieri, FCPA, FCA
|
|
President and Chief Executive Officer
|
|
Chief Financial Officer
|
|
Rogers Communications Inc.
|
1
|
2017 Annual Financial Statements
|
Rogers Communications Inc.
|
2
|
2017 Annual Financial Statements
|
Rogers Communications Inc.
|
3
|
2017 Annual Financial Statements
|
Years ended December 31
|
Note
|
|
2017
|
|
2016
|
|
|
|
|
|
|||
Revenue
|
5
|
|
14,143
|
|
13,702
|
|
|
|
|
|
|||
Operating expenses:
|
|
|
|
|||
Operating costs
|
6
|
|
8,825
|
|
8,671
|
|
Depreciation and amortization
|
7, 8
|
|
2,142
|
|
2,276
|
|
Gain on disposition of property, plant and equipment
|
7
|
|
(49
|
)
|
—
|
|
Restructuring, acquisition and other
|
7, 9
|
|
152
|
|
644
|
|
Finance costs
|
10
|
|
746
|
|
761
|
|
Other (income) expense
|
11
|
|
(19
|
)
|
191
|
|
|
|
|
|
|
||
Income before income tax expense
|
|
2,346
|
|
1,159
|
|
|
Income tax expense
|
12
|
|
635
|
|
324
|
|
|
|
|
|
|
||
Net income for the year
|
|
1,711
|
|
835
|
|
|
|
|
|
|
|||
Earnings per share:
|
|
|
|
|||
Basic
|
13
|
|
$3.32
|
$1.62
|
||
Diluted
|
13
|
|
$3.31
|
$1.62
|
Rogers Communications Inc.
|
4
|
2017 Annual Financial Statements
|
Years ended December 31
|
Note
|
|
2017
|
|
2016
|
|
|
|
|
|
|||
Net income for the year
|
|
1,711
|
|
835
|
|
|
|
|
|
|
|||
Other comprehensive income (loss):
|
|
|
|
|||
|
|
|
|
|||
Items that will not be reclassified to income:
|
|
|
|
|||
Defined benefit pension plans:
|
|
|
|
|||
Remeasurements
|
22
|
|
(62
|
)
|
(101
|
)
|
Related income tax recovery
|
|
17
|
|
27
|
|
|
|
|
|
|
|||
Items that will not be reclassified to net income
|
|
(45
|
)
|
(74
|
)
|
|
|
|
|
|
|||
Items that may subsequently be reclassified to income:
|
|
|
|
|||
Available-for-sale investments:
|
|
|
|
|||
Increase in fair value
|
|
433
|
|
90
|
|
|
Reclassification to net income for gain on sale of investment
|
|
—
|
|
(39
|
)
|
|
Related income tax expense
|
|
(62
|
)
|
(7
|
)
|
|
|
|
|
|
|||
Available-for-sale investments
|
|
371
|
|
44
|
|
|
|
|
|
|
|||
Cash flow hedging derivative instruments:
|
|
|
|
|||
Unrealized loss in fair value of derivative instruments
|
|
(566
|
)
|
(336
|
)
|
|
Reclassification to net income of loss on debt derivatives
|
|
591
|
|
255
|
|
|
Reclassification to net income or property, plant and equipment of loss (gain) on expenditure derivatives
|
|
39
|
|
(80
|
)
|
|
Reclassification to net income for accrued interest
|
|
(60
|
)
|
(69
|
)
|
|
Related income tax recovery
|
|
40
|
|
66
|
|
|
|
|
|
|
|||
Cash flow hedging derivative instruments
|
|
44
|
|
(164
|
)
|
|
|
|
|
|
|||
Equity-accounted investments:
|
|
|
|
|||
Share of other comprehensive loss of equity-accounted investments, net of tax
|
|
(15
|
)
|
(8
|
)
|
|
Reclassification to net income of realized other comprehensive income for equity-accounted investments
|
|
—
|
|
(15
|
)
|
|
|
|
|
|
|
|
|
Equity-accounted investments
|
|
(15
|
)
|
(23
|
)
|
|
|
|
|
|
|||
Items that may subsequently be reclassified to net income
|
|
400
|
|
(143
|
)
|
|
|
|
|
|
|||
Other comprehensive income (loss) for the year
|
|
355
|
|
(217
|
)
|
|
|
|
|
|
|||
Comprehensive income for the year
|
|
2,066
|
|
618
|
|
Rogers Communications Inc.
|
5
|
2017 Annual Financial Statements
|
As at December 31
|
Note
|
|
2017
|
|
2016
|
|
|
|
|
|
|||
Assets
|
|
|
|
|||
Current assets:
|
|
|
|
|||
Accounts receivable
|
14
|
|
2,041
|
|
1,949
|
|
Inventories
|
15
|
|
313
|
|
315
|
|
Other current assets
|
|
197
|
|
215
|
|
|
Current portion of derivative instruments
|
16
|
|
421
|
|
91
|
|
Total current assets
|
|
2,972
|
|
2,570
|
|
|
|
|
|
|
|||
Property, plant and equipment
|
7
|
|
11,143
|
|
10,749
|
|
Intangible assets
|
8
|
|
7,244
|
|
7,130
|
|
Investments
|
17
|
|
2,561
|
|
2,174
|
|
Derivative instruments
|
16
|
|
953
|
|
1,708
|
|
Other long-term assets
|
|
82
|
|
98
|
|
|
Deferred tax assets
|
12
|
|
3
|
|
8
|
|
Goodwill
|
8
|
|
3,905
|
|
3,905
|
|
|
|
|
|
|||
Total assets
|
|
28,863
|
|
28,342
|
|
|
|
|
|
|
|||
Liabilities and shareholders’ equity
|
|
|
|
|||
Current liabilities:
|
|
|
|
|||
Bank advances
|
|
6
|
|
71
|
|
|
Short-term borrowings
|
18
|
|
1,585
|
|
800
|
|
Accounts payable and accrued liabilities
|
|
2,931
|
|
2,783
|
|
|
Income tax payable
|
|
62
|
|
186
|
|
|
Current portion of provisions
|
19
|
|
4
|
|
134
|
|
Unearned revenue
|
|
346
|
|
367
|
|
|
Current portion of long-term debt
|
20
|
|
1,756
|
|
750
|
|
Current portion of derivative instruments
|
16
|
|
133
|
|
22
|
|
Total current liabilities
|
|
6,823
|
|
5,113
|
|
|
|
|
|
|
|||
Provisions
|
19
|
|
35
|
|
33
|
|
Long-term debt
|
20
|
|
12,692
|
|
15,330
|
|
Derivative instruments
|
16
|
|
147
|
|
118
|
|
Other long-term liabilities
|
21
|
|
613
|
|
562
|
|
Deferred tax liabilities
|
12
|
|
2,206
|
|
1,917
|
|
Total liabilities
|
|
22,516
|
|
23,073
|
|
|
|
|
|
|
|||
Shareholders’ equity
|
23
|
|
6,347
|
|
5,269
|
|
|
|
|
|
|||
Total liabilities and shareholders’ equity
|
|
28,863
|
|
28,342
|
|
|
|
|
|
|
|||
Guarantees
|
26
|
|
|
|
||
Commitments and contingent liabilities
|
27
|
|
|
|
||
Subsequent events
|
20, 23
|
|
|
|
"Edward S. Rogers"
|
|
"John H. Clappison"
|
|
Edward S. Rogers
Director
|
|
John H. Clappison, FCPA, FCA
Director
|
|
Rogers Communications Inc.
|
6
|
2017 Annual Financial Statements
|
|
Class A
Voting Shares
|
Class B
Non-Voting Shares
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2017
|
Amount
|
|
Number
of shares
(000s)
|
|
Amount
|
|
Number
of shares
(000s)
|
|
Retained
earnings
|
|
Available-
for-sale
financial
assets
reserve
|
|
Hedging
reserve
|
|
Equity
investment
hedging
reserve
|
|
Total
shareholders’
equity
|
|
Balances, January 1, 2017
|
72
|
|
112,412
|
|
405
|
|
402,396
|
|
4,247
|
|
642
|
|
(107
|
)
|
10
|
|
5,269
|
|
Net income for the year
|
—
|
|
—
|
|
—
|
|
—
|
|
1,711
|
|
—
|
|
—
|
|
—
|
|
1,711
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|||||||||
Defined benefit pension plans, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
(45
|
)
|
—
|
|
—
|
|
—
|
|
(45
|
)
|
Available-for-sale investments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
371
|
|
—
|
|
—
|
|
371
|
|
Derivative instruments accounted for as hedges, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
44
|
|
—
|
|
44
|
|
Share of equity-accounted investments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(15
|
)
|
(15
|
)
|
Total other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(45
|
)
|
371
|
|
44
|
|
(15
|
)
|
355
|
|
Comprehensive income (loss) for the year
|
—
|
|
—
|
|
—
|
|
—
|
|
1,666
|
|
371
|
|
44
|
|
(15
|
)
|
2,066
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Transactions with shareholders recorded directly in equity:
|
|
|
|
|
|
|
|
|
|
|||||||||
Dividends declared
|
—
|
|
—
|
|
—
|
|
—
|
|
(988
|
)
|
—
|
|
—
|
|
—
|
|
(988
|
)
|
Shares issued on exercise of stock options
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Share class exchange
|
—
|
|
(5
|
)
|
—
|
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total transactions with shareholders
|
—
|
|
(5
|
)
|
—
|
|
7
|
|
(988
|
)
|
—
|
|
—
|
|
—
|
|
(988
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balances, December 31, 2017
|
72
|
|
112,407
|
|
405
|
|
402,403
|
|
4,925
|
|
1,013
|
|
(63
|
)
|
(5
|
)
|
6,347
|
|
|
Class A
Voting Shares
|
Class B
Non-Voting Shares
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2016
|
Amount
|
|
Number
of shares
(000s)
|
|
Amount
|
|
Number
of shares
(000s)
|
|
Retained
earnings
|
|
Available-
for-sale
financial
assets
reserve
|
|
Hedging
reserve
|
|
Equity
investment
hedging
reserve
|
|
Total
shareholders’
equity
|
|
Balances, January 1, 2016
|
72
|
|
112,439
|
|
402
|
|
402,308
|
|
4,474
|
|
598
|
|
57
|
|
33
|
|
5,636
|
|
Net income for the year
|
—
|
|
—
|
|
—
|
|
—
|
|
835
|
|
—
|
|
—
|
|
—
|
|
835
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|||||||||
Defined benefit pension plans, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
(74
|
)
|
—
|
|
—
|
|
—
|
|
(74
|
)
|
Available-for-sale investments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
44
|
|
—
|
|
—
|
|
44
|
|
Derivative instruments accounted for as hedges, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(164
|
)
|
—
|
|
(164
|
)
|
Share of equity-accounted investments, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(23
|
)
|
(23
|
)
|
Total other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(74
|
)
|
44
|
|
(164
|
)
|
(23
|
)
|
(217
|
)
|
Comprehensive income (loss) for the year
|
—
|
|
—
|
|
—
|
|
—
|
|
761
|
|
44
|
|
(164
|
)
|
(23
|
)
|
618
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Transactions with shareholders recorded directly in equity:
|
|
|
|
|
|
|
|
|
|
|||||||||
Dividends declared
|
—
|
|
—
|
|
—
|
|
—
|
|
(988
|
)
|
—
|
|
—
|
|
—
|
|
(988
|
)
|
Shares issued on exercise of stock options
|
—
|
|
—
|
|
3
|
|
61
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
Share class exchange
|
—
|
|
(27
|
)
|
—
|
|
27
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total transactions with shareholders
|
—
|
|
(27
|
)
|
3
|
|
88
|
|
(988
|
)
|
—
|
|
—
|
|
—
|
|
(985
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balances, December 31, 2016
|
72
|
|
112,412
|
|
405
|
|
402,396
|
|
4,247
|
|
642
|
|
(107
|
)
|
10
|
|
5,269
|
|
Rogers Communications Inc.
|
7
|
2017 Annual Financial Statements
|
Years ended December 31
|
Note
|
|
2017
|
|
2016
|
|
Operating activities:
|
|
|
|
|||
Net income for the year
|
|
1,711
|
|
835
|
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|||
Depreciation and amortization
|
7, 8
|
|
2,142
|
|
2,276
|
|
Program rights amortization
|
8
|
|
64
|
|
71
|
|
Finance costs
|
10
|
|
746
|
|
761
|
|
Income tax expense
|
12
|
|
635
|
|
324
|
|
Stock-based compensation
|
24
|
|
61
|
|
61
|
|
Post-employment benefits contributions, net of expense
|
22
|
|
4
|
|
(3
|
)
|
Net loss on divestitures pertaining to investments
|
|
—
|
|
11
|
|
|
(Recovery) loss on wind-down of shomi
|
11
|
|
(20
|
)
|
140
|
|
Gain on disposition of property, plant and equipment
|
7
|
|
(49
|
)
|
—
|
|
Impairment of assets and related onerous contract charges
|
7
|
|
—
|
|
484
|
|
Other
|
|
|
8
|
|
34
|
|
Cash provided by operating activities before changes in non-cash working capital items, income taxes paid, and interest paid
|
|
5,302
|
|
4,994
|
|
|
Change in non-cash operating working capital items
|
28
|
|
(154
|
)
|
14
|
|
Cash provided by operating activities before income taxes paid and interest paid
|
|
5,148
|
|
5,008
|
|
|
Income taxes paid
|
|
(475
|
)
|
(295
|
)
|
|
Interest paid
|
|
|
(735
|
)
|
(756
|
)
|
|
|
|
|
|||
Cash provided by operating activities
|
|
|
3,938
|
|
3,957
|
|
|
|
|
|
|||
Investing activities:
|
|
|
|
|||
Capital expenditures
|
7, 28
|
|
(2,436
|
)
|
(2,352
|
)
|
Additions to program rights
|
8
|
|
(59
|
)
|
(46
|
)
|
Changes in non-cash working capital related to capital expenditures and intangible assets
|
|
109
|
|
(103
|
)
|
|
Acquisitions and other strategic transactions, net of cash acquired
|
8
|
|
(184
|
)
|
—
|
|
Other
|
|
(60
|
)
|
45
|
|
|
|
|
|
|
|||
Cash used in investing activities
|
|
|
(2,630
|
)
|
(2,456
|
)
|
|
|
|
|
|||
Financing activities:
|
|
|
|
|||
Net proceeds received on short-term borrowings
|
18
|
|
858
|
|
—
|
|
Net repayment of long-term debt
|
20
|
|
(1,034
|
)
|
(538
|
)
|
Net payments on settlement of debt derivatives and forward contracts
|
16
|
|
(79
|
)
|
(45
|
)
|
Transaction costs incurred
|
|
—
|
|
(17
|
)
|
|
Dividends paid
|
23
|
|
(988
|
)
|
(988
|
)
|
Other
|
|
—
|
|
5
|
|
|
|
|
|
|
|||
Cash used in financing activities
|
|
|
(1,243
|
)
|
(1,583
|
)
|
|
|
|
|
|||
Change in cash and cash equivalents
|
|
65
|
|
(82
|
)
|
|
(Bank advances) cash and cash equivalents, beginning of year
|
|
|
(71
|
)
|
11
|
|
|
|
|
|
|||
Bank advances, end of year
|
|
|
(6
|
)
|
(71
|
)
|
Rogers Communications Inc.
|
8
|
2017 Annual Financial Statements
|
Page
|
|
Note
|
|
Page
|
|
Note
|
Note 1
|
Nature of the Business
|
|
Note 16
|
Financial Risk Management and Financial Instruments
|
||
Note 2
|
Significant Accounting Policies
|
|
|
|
||
Note 3
|
Capital Risk Management
|
|
Note 17
|
Investments
|
||
Note 4
|
Segmented Information
|
|
Note 18
|
Short-Term Borrowings
|
||
Note 5
|
Revenue
|
|
Note 19
|
Provisions
|
||
Note 6
|
Operating Costs
|
|
Note 20
|
Long-Term Debt
|
||
Note 7
|
Property, Plant and Equipment
|
|
Note 21
|
Other Long-Term Liabilities
|
||
Note 8
|
Intangible Assets and Goodwill
|
|
Note 22
|
Post-Employment Benefits
|
||
Note 9
|
Restructuring, Acquisition and Other
|
|
Note 23
|
Shareholders' Equity
|
||
Note 10
|
Finance Costs
|
|
Note 24
|
Stock-Based Compensation
|
||
Note 11
|
Other (Income) Expense
|
|
Note 25
|
Related Party Transactions
|
||
Note 12
|
Income Taxes
|
|
Note 26
|
Guarantees
|
||
Note 13
|
Earnings Per Share
|
|
Note 27
|
Commitments and Contingent Liabilities
|
||
Note 14
|
Accounts Receivable
|
|
Note 28
|
Supplemental Cash Flow Information
|
||
Note 15
|
Inventories
|
|
|
|
|
Rogers Communications Inc.
|
9
|
2017 Annual Financial Statements
|
Segment
|
Principal activities
|
Wireless
|
Wireless telecommunications operations for Canadian consumers and businesses.
|
Cable
|
Cable telecommunications operations, including Internet, television, and telephony (phone) services for Canadian consumers and businesses.
|
Business Solutions
|
Network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the enterprise, public sector, and carrier wholesale markets.
|
Media
|
A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, digital media, and publishing.
|
(a)
|
BASIS OF PRESENTATION
|
•
|
certain financial instruments as disclosed in
note 16
, which are measured at fair value;
|
•
|
the net deferred pension liability, which is measured as described in
note 22
; and
|
•
|
liabilities for stock-based compensation, which are measured at fair value as disclosed in
note 24
.
|
(b)
|
BASIS OF CONSOLIDATION
|
(c)
|
FOREIGN CURRENCY TRANSLATION
|
•
|
monetary assets and monetary liabilities - at the exchange rate in effect as at the date of the Consolidated Statements of Financial Position;
|
•
|
non-monetary assets, non-monetary liabilities, and related depreciation and amortization expenses - at the historical exchange rates; and
|
•
|
revenue and expenses other than depreciation and amortization - at the average rate for the month in which the transaction was recognized.
|
(d)
|
BUSINESS COMBINATIONS
|
Rogers Communications Inc.
|
10
|
2017 Annual Financial Statements
|
(e)
|
NEW ACCOUNTING PRONOUNCEMENTS ADOPTED IN 2017
|
•
|
Amendments to IAS 7,
Statement of Cash Flows
, requiring entities to provide additional disclosures that enable financial statement users to evaluate cash flow and non-cash changes in liabilities arising from financing activities.
|
•
|
Amendments to IAS 12,
Income Taxes,
clarifying the requirements for deferred tax assets for unrealized losses on debt instruments
.
|
•
|
Amendments to IFRS 12,
Disclosure of Interests in Other Entities,
clarifying the required disclosures regarding an entity's interest in subsidiaries, joint arrangements, and associates that are held for sale, held for distribution, or classified as discontinued operations.
|
(f)
|
ADDITIONAL SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES, AND JUDGMENTS
|
•
|
information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the amounts recognized in the consolidated financial statements;
|
•
|
information about judgments made in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements; and
|
•
|
information on our significant accounting policies.
|
Note
|
Topic
|
Page
|
Accounting Policy
|
Use of Estimates
|
Use of Judgments
|
4
|
Reportable Segments
|
X
|
|
X
|
|
5
|
Revenue Recognition
|
X
|
|
|
|
7
|
Property, Plant and Equipment
|
X
|
X
|
X
|
|
8
|
Intangible Assets and Goodwill
|
X
|
X
|
X
|
|
12
|
Income Taxes
|
X
|
|
X
|
|
13
|
Earnings Per Share
|
X
|
|
|
|
14
|
Accounts Receivable
|
X
|
|
|
|
15
|
Inventories
|
X
|
|
|
|
16
|
Financial Instruments
|
X
|
X
|
X
|
|
17
|
Investments
|
X
|
|
|
|
19
|
Provisions
|
X
|
X
|
X
|
|
22
|
Post-Employment Benefits
|
X
|
X
|
|
|
24
|
Stock-Based Compensation
|
X
|
X
|
|
|
27
|
Commitments and Contingent Liabilities
|
X
|
|
X
|
Rogers Communications Inc.
|
11
|
2017 Annual Financial Statements
|
(g)
|
RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
|
Rogers Communications Inc.
|
12
|
2017 Annual Financial Statements
|
|
|
Year ended December 31, 2017
|
|
||||
(In billions of dollars)
|
Note 2(g)
|
As reported
|
|
Estimated effect of transition
|
|
Subsequent to transition
1
|
|
|
|
|
|
|
|||
Revenue
|
i
|
14.1
|
|
0.2
|
|
14.3
|
|
|
|
|
|
|
|||
Operating expenses:
|
|
|
|
|
|||
Operating costs
|
ii, iii
|
8.8
|
|
***
|
|
8.8
|
|
Other non-operating costs
|
|
3.0
|
|
—
|
|
3.0
|
|
|
|
|
|
|
|||
Income before income tax expense
|
|
2.3
|
|
0.2
|
|
2.5
|
|
Income tax expense
|
|
0.6
|
|
***
|
|
0.6
|
|
|
|
|
|
|
|||
Net income for the year
|
|
1.7
|
|
0.2
|
|
1.9
|
|
1
|
As a result of
IFRS 15
being adopted effective January 1, 2018, we will retrospectively amend our 2017 results in our fiscal 2018 financial filings.
|
|
|
As at January 1, 2017
|
|
|
As at December 31, 2017
|
|
||||||||
(in billions of dollars)
|
Note 2(g)
|
As reported
|
|
Estimated effect of transition
|
|
Subsequent to transition
1
|
|
|
As reported
|
|
Estimated effect of transition
|
|
Subsequent to transition
1
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
1.9
|
|
***
|
|
1.9
|
|
|
2.0
|
|
***
|
|
2.0
|
|
Inventories
|
iii
|
0.3
|
|
0.1
|
|
0.4
|
|
|
0.3
|
|
0.1
|
|
0.4
|
|
Current portion of contract assets
|
i
|
—
|
|
0.7
|
|
0.7
|
|
|
—
|
|
0.8
|
|
0.8
|
|
Other current assets
|
ii
|
0.2
|
|
0.2
|
|
0.4
|
|
|
0.2
|
|
0.2
|
|
0.4
|
|
Remainder of current assets
|
|
0.2
|
|
—
|
|
0.2
|
|
|
0.5
|
|
—
|
|
0.5
|
|
Total current assets
|
|
2.6
|
|
1.0
|
|
3.6
|
|
|
3.0
|
|
1.1
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
||||||
Contract assets
|
i
|
—
|
|
0.4
|
|
0.4
|
|
|
—
|
|
0.4
|
|
0.4
|
|
Other long-term assets
|
ii
|
0.1
|
|
***
|
|
0.1
|
|
|
0.1
|
|
***
|
|
0.1
|
|
Remainder of long-term assets
|
|
25.6
|
|
—
|
|
25.6
|
|
|
25.8
|
|
—
|
|
25.8
|
|
Total assets
|
|
28.3
|
|
1.4
|
|
29.7
|
|
|
28.9
|
|
1.5
|
|
30.4
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
||||||
Other current liabilities
2
|
iii
|
0.1
|
|
0.1
|
|
0.2
|
|
|
—
|
|
0.1
|
|
0.1
|
|
Current portion of contract liabilities
3
|
i
|
0.4
|
|
***
|
|
0.4
|
|
|
0.3
|
|
***
|
|
0.3
|
|
Remainder of current liabilities
|
|
4.6
|
|
—
|
|
4.6
|
|
|
6.5
|
|
—
|
|
6.5
|
|
Total current liabilities
|
|
5.1
|
|
0.1
|
|
5.2
|
|
|
6.8
|
|
0.1
|
|
6.9
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax liabilities
|
|
1.9
|
|
0.4
|
|
2.3
|
|
|
2.2
|
|
0.4
|
|
2.6
|
|
Remainder of long-term liabilities
|
|
16.0
|
|
—
|
|
16.0
|
|
|
13.5
|
|
—
|
|
13.5
|
|
Total liabilities
|
|
23.0
|
|
0.5
|
|
23.5
|
|
|
22.5
|
|
0.5
|
|
23.0
|
|
Shareholders’ equity
|
|
5.3
|
|
0.9
|
|
6.2
|
|
|
6.4
|
|
1.0
|
|
7.4
|
|
Total liabilities and shareholders’ equity
|
|
28.3
|
|
1.4
|
|
29.7
|
|
|
28.9
|
|
1.5
|
|
30.4
|
|
2
|
Previously reported as "current portion of provisions".
|
3
|
Previously reported as "unearned revenue".
|
Rogers Communications Inc.
|
13
|
2017 Annual Financial Statements
|
Rogers Communications Inc.
|
14
|
2017 Annual Financial Statements
|
Financial instrument
|
IAS 39
|
IFRS 9
|
|
|
|
Financial assets
|
|
|
Cash and cash equivalents
|
Loans and receivables
|
Amortized cost
|
Accounts receivable
|
Loans and receivables
|
Amortized cost
|
Investments
|
Available-for-sale
1
|
FVTOCI with no reclassification to net income
|
|
|
|
Financial liabilities
|
|
|
Bank advances
|
Other financial liabilities
|
Amortized cost
|
Short-term borrowings
|
Other financial liabilities
2
|
Amortized cost
|
Accounts payable
|
Other financial liabilities
|
Amortized cost
|
Accrued liabilities
|
Other financial liabilities
|
Amortized cost
|
Long-term debt
|
Other financial liabilities
2
|
Amortized cost
|
|
|
|
Derivatives
3
|
|
|
Debt derivatives
4
|
Held-for-trading
|
FVTOCI and FVTPL
|
Bond forwards
|
Held-for-trading
|
FVTOCI
|
Expenditure derivatives
|
Held-for-trading
|
FVTOCI
|
Equity derivatives
|
Held-for-trading
5
|
FVTPL
|
1
|
Subsequently measured at fair value with changes recognized in other comprehensive income. The net change subsequent to initial recognition, in the case of investments, is reclassified into net income upon disposal of the investment or when the investment becomes impaired.
|
2
|
Subsequently measured at amortized cost using the effective interest method.
|
3
|
The derivatives can be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately into net income.
|
4
|
Debt derivatives related to our senior notes and debentures have been designated as hedges for accounting purposes and will be classified as fair value through other comprehensive income (FVTOCI).
Debt derivatives related to our credit facility and commercial paper borrowings have not been designated as hedges for accounting purposes and will be classified as fair value through profit and loss (FVTPL).
|
5
|
Subsequent changes are offset against stock-based compensation expense or recovery in operating costs.
|
•
|
apply IFRS 16 with full retrospective effect; or
|
•
|
recognize the cumulative effect of initially applying IFRS 16 as an adjustment to opening equity at the date of initial application.
|
Rogers Communications Inc.
|
15
|
2017 Annual Financial Statements
|
Rogers Communications Inc.
|
16
|
2017 Annual Financial Statements
|
Year ended December 31, 2017
|
Note
|
|
Wireless
|
|
Cable
|
|
Business Solutions
|
|
Media
|
|
Corporate items and eliminations
|
|
Consolidated totals
|
|
|
(In millions of dollars)
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
5
|
|
8,343
|
|
3,466
|
|
387
|
|
2,153
|
|
(206
|
)
|
14,143
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating costs
1
|
|
|
4,782
|
|
1,757
|
|
259
|
|
2,014
|
|
(48
|
)
|
8,764
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted operating profit
|
|
3,561
|
|
1,709
|
|
128
|
|
139
|
|
(158
|
)
|
5,379
|
|
||
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation
1
|
24
|
|
|
|
|
|
|
61
|
|
||||||
Depreciation and amortization
|
7, 8
|
|
|
|
|
|
|
2,142
|
|
||||||
Gain on disposition of property, plant and equipment
|
7
|
|
|
|
|
|
|
(49
|
)
|
||||||
Restructuring, acquisition and other
|
9
|
|
|
|
|
|
|
152
|
|
||||||
Finance costs
|
10
|
|
|
|
|
|
|
746
|
|
||||||
Other income
|
11
|
|
|
|
|
|
|
|
|
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
2,346
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures before proceeds on disposition
2
|
|
|
806
|
|
1,172
|
|
131
|
|
83
|
|
318
|
|
2,510
|
|
|
Goodwill
|
|
|
1,160
|
|
1,379
|
|
429
|
|
937
|
|
—
|
|
3,905
|
|
|
Total assets
|
|
|
14,261
|
|
6,033
|
|
1,196
|
|
2,405
|
|
4,968
|
|
28,863
|
|
1
|
Included in operating costs on the Consolidated Statements of Income.
|
2
|
Excludes proceeds on disposition of
$74 million
(see
note 28
).
|
Year ended December 31, 2016
|
Note
|
|
Wireless
|
|
Cable
|
|
Business Solutions
|
|
Media
|
|
Corporate items and eliminations
|
|
Consolidated totals
|
|
|
(In millions of dollars)
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
5
|
|
7,916
|
|
3,449
|
|
384
|
|
2,146
|
|
(193
|
)
|
13,702
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating costs
1
|
|
|
4,631
|
|
1,775
|
|
261
|
|
1,977
|
|
(34
|
)
|
8,610
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted operating profit
|
|
3,285
|
|
1,674
|
|
123
|
|
169
|
|
(159
|
)
|
5,092
|
|
||
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation
1
|
24
|
|
|
|
|
|
|
61
|
|
||||||
Depreciation and amortization
|
7, 8
|
|
|
|
|
|
|
2,276
|
|
||||||
Restructuring, acquisition and other
|
7, 9
|
|
|
|
|
|
|
644
|
|
||||||
Finance costs
|
10
|
|
|
|
|
|
|
761
|
|
||||||
Other expense
|
11
|
|
|
|
|
|
|
|
|
|
|
|
191
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
1,159
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures before proceeds on disposition
|
|
|
702
|
|
1,085
|
|
146
|
|
62
|
|
357
|
|
2,352
|
|
|
Goodwill
|
|
|
1,160
|
|
1,379
|
|
429
|
|
937
|
|
—
|
|
3,905
|
|
|
Total assets
|
|
|
14,074
|
|
5,288
|
|
1,219
|
|
2,474
|
|
5,287
|
|
28,342
|
|
1
|
Included in operating costs on the Consolidated Statements of Income.
|
Rogers Communications Inc.
|
17
|
2017 Annual Financial Statements
|
Source of revenue
|
How we recognize revenue
|
|
Monthly subscriber fees for:
● wireless airtime and data services;
● cable, telephony, and Internet services;
● network services;
● media subscriptions; and
● rental of equipment
|
●
|
As the service is provided
|
Revenue from roaming, long distance, pay per use, and other optional or non-subscription services and other sales of products
|
●
|
As the service is provided or product is delivered
|
Revenue from the sale of wireless and cable equipment
|
●
|
When the equipment is delivered and accepted by the independent dealer or subscriber in a direct sales channel
|
Equipment subsidies related to providing equipment to new and existing subscribers
|
●
|
Equipment subsidies are recognized as a reduction of equipment revenue when the equipment is activated
|
Activation fees charged to subscribers in Wireless
|
●
|
As part of service revenue upon activation
|
●
|
These fees do not meet the criteria as a separate unit of accounting
|
|
Advertising revenue
|
●
|
When the advertising airs on our radio or television stations, is featured in our publications, or displayed on our digital properties
|
Monthly subscription revenue received by television stations for subscriptions from cable and satellite providers
|
●
|
When the services are delivered to cable and satellite providers' subscribers
|
Toronto Blue Jays revenue from home game admission and concessions
|
●
|
When the related games are played during the baseball season and when goods are sold
|
Toronto Blue Jays revenue from Major League Baseball, including fund redistribution and other distributions
|
●
|
When the amount can be determined
|
Revenue from Toronto Blue Jays, radio, and television broadcast agreements
|
●
|
At the time the related games are aired
|
Revenue from sublicensing of program rights
|
●
|
Over the course of the applicable season
|
Rewards granted to customers through customer loyalty programs, which are considered a separately identifiable component of the sales transactions
|
●
|
Estimate the portion of the original sales transaction to allocate to the reward credit based on the fair value of the reward credit that can be obtained when the credit is redeemed
|
●
|
Defer the allocated amount as a liability until the rewards are redeemed by the customer and we provide the goods or services
|
|
Interest income on credit card receivables
|
●
|
As it is earned (i.e. upon the passage of time) using the effective interest method
|
•
|
divide the products and services into separate units of accounting, as long as the delivered elements have stand-alone value to customers and we can determine the fair value of any 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.
|
Rogers Communications Inc.
|
18
|
2017 Annual Financial Statements
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Wireless:
|
|
|
||
Service revenue
|
7,775
|
|
7,258
|
|
Equipment revenue
|
568
|
|
658
|
|
|
|
|
||
Total Wireless
|
8,343
|
|
7,916
|
|
|
|
|
||
Cable:
|
|
|
||
Internet
|
1,606
|
|
1,495
|
|
Television
|
1,501
|
|
1,562
|
|
Phone
|
353
|
|
386
|
|
Service revenue
|
3,460
|
|
3,443
|
|
Equipment revenue
|
6
|
|
6
|
|
|
|
|
||
Total Cable
|
3,466
|
|
3,449
|
|
|
|
|
||
Business Solutions:
|
|
|
||
Next generation
|
322
|
|
307
|
|
Legacy
|
58
|
|
71
|
|
Service revenue
|
380
|
|
378
|
|
Equipment revenue
|
7
|
|
6
|
|
|
|
|
||
Total Business Solutions
|
387
|
|
384
|
|
|
|
|
||
Media:
|
|
|
||
Advertising
|
838
|
|
870
|
|
Subscription
|
511
|
|
474
|
|
Retail
|
352
|
|
325
|
|
Other
|
452
|
|
477
|
|
|
|
|
||
Total Media
|
2,153
|
|
2,146
|
|
|
|
|
||
Corporate items and intercompany eliminations
|
(206
|
)
|
(193
|
)
|
|
|
|
||
Total revenue
|
14,143
|
|
13,702
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Cost of equipment sales and direct sales channel subsidies
|
2,039
|
|
1,954
|
|
Merchandise for resale
|
237
|
|
209
|
|
Other external purchases
|
4,429
|
|
4,435
|
|
Employee salaries and benefits and stock-based compensation
|
2,120
|
|
2,073
|
|
|
|
|
||
Total operating costs
|
8,825
|
|
8,671
|
|
Rogers Communications Inc.
|
19
|
2017 Annual Financial Statements
|
•
|
the cost of materials and direct labour;
|
•
|
costs directly associated with bringing the assets to a working condition for their intended use;
|
•
|
expected costs of decommissioning the items and restoring the sites on which they are located (see
note 19
); and
|
•
|
borrowing costs on qualifying assets.
|
Asset
|
Basis
|
Estimated useful life
|
Buildings
|
Diminishing balance
|
5 to 40 years
|
Cable and wireless network
|
Straight-line
|
3 to 40 years
|
Computer equipment and software
|
Straight-line
|
4 to 10 years
|
Customer premise equipment
|
Straight-line
|
3 to 5 years
|
Leasehold improvements
|
Straight-line
|
Over shorter of estimated useful life or lease term
|
Equipment and vehicles
|
Diminishing balance
|
3 to 20 years
|
•
|
fair value less costs to sell; and
|
•
|
value in use.
|
Rogers Communications Inc.
|
20
|
2017 Annual Financial Statements
|
•
|
future cash flows;
|
•
|
terminal growth rates; and
|
•
|
discount rates.
|
•
|
Analyzing discounted cash flows - we estimate the discounted future cash flows for periods of five to ten years, depending on the CGU, and a terminal value, similar to the value in use methodology described above, while applying assumptions consistent with those a market participant would make. Future cash flows are based on our estimates of expected future operating results of the CGU. Our estimates of future cash flows, terminal values, and discount rates consider similar factors to those described above for value in use estimates; or
|
•
|
Using a market approach - we estimate the recoverable amount of the CGU using multiples of operating performance of comparable entities and precedent transactions in that industry.
|
(In millions of dollars)
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
|
||||||||||||
|
Cost
|
|
Accumulated depreciation
|
|
Net carrying amount
|
|
Cost
|
|
Accumulated depreciation
|
|
Net carrying amount
|
|
Cost
|
|
Accumulated depreciation
|
|
Net carrying amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Land and buildings
|
1,090
|
|
(397
|
)
|
693
|
|
1,062
|
|
(375
|
)
|
687
|
|
998
|
|
(347
|
)
|
651
|
|
Cable and wireless networks
|
20,252
|
|
(13,206
|
)
|
7,046
|
|
20,108
|
|
(13,035
|
)
|
7,073
|
|
20,900
|
|
(13,579
|
)
|
7,321
|
|
Computer equipment and software
|
4,996
|
|
(2,807
|
)
|
2,189
|
|
4,296
|
|
(2,424
|
)
|
1,872
|
|
5,294
|
|
(3,421
|
)
|
1,873
|
|
Customer premise equipment
|
1,565
|
|
(1,090
|
)
|
475
|
|
1,560
|
|
(1,156
|
)
|
404
|
|
1,658
|
|
(1,197
|
)
|
461
|
|
Leasehold improvements
|
496
|
|
(220
|
)
|
276
|
|
457
|
|
(193
|
)
|
264
|
|
423
|
|
(175
|
)
|
248
|
|
Equipment and vehicles
|
1,246
|
|
(782
|
)
|
464
|
|
1,169
|
|
(720
|
)
|
449
|
|
1,311
|
|
(868
|
)
|
443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total property, plant and equipment
|
29,645
|
|
(18,502
|
)
|
11,143
|
|
28,652
|
|
(17,903
|
)
|
10,749
|
|
30,584
|
|
(19,587
|
)
|
10,997
|
|
Rogers Communications Inc.
|
21
|
2017 Annual Financial Statements
|
(In millions of dollars)
|
December 31, 2016
|
December 31, 2017
|
|
|||||||
|
Net carrying amount
|
|
Additions
1
|
|
Depreciation
|
|
Other
2
|
|
Net carrying amount
|
|
|
|
|
|
|
|
|
||||
Land and buildings
|
687
|
|
61
|
|
(30
|
)
|
(25
|
)
|
693
|
|
Cable and wireless networks
|
7,073
|
|
1,125
|
|
(1,150
|
)
|
(2
|
)
|
7,046
|
|
Computer equipment and software
|
1,872
|
|
867
|
|
(549
|
)
|
(1
|
)
|
2,189
|
|
Customer premise equipment
|
404
|
|
315
|
|
(244
|
)
|
—
|
|
475
|
|
Leasehold improvements
|
264
|
|
40
|
|
(28
|
)
|
—
|
|
276
|
|
Equipment and vehicles
|
449
|
|
102
|
|
(86
|
)
|
(1
|
)
|
464
|
|
|
|
|
|
|
|
|||||
Total property, plant and equipment
|
10,749
|
|
2,510
|
|
(2,087
|
)
|
(29
|
)
|
11,143
|
|
1
|
Excludes proceeds on disposition of
$74 million
(see
note 28
).
|
2
|
Includes disposals, reclassifications, and other adjustments.
|
(In millions of dollars)
|
December 31, 2015
|
December 31, 2016
|
|
|||||||||
|
Net carrying amount
|
|
Additions
|
|
Depreciation
|
|
Impairment
|
|
Other
1
|
|
Net carrying amount
|
|
|
|
|
|
|
|
|
|
|||||
Land and buildings
|
651
|
|
64
|
|
(28
|
)
|
—
|
|
—
|
|
687
|
|
Cable and wireless networks
|
7,321
|
|
1,173
|
|
(1,216
|
)
|
(205
|
)
|
—
|
|
7,073
|
|
Computer equipment and software
|
1,873
|
|
732
|
|
(522
|
)
|
(207
|
)
|
(4
|
)
|
1,872
|
|
Customer premise equipment
|
461
|
|
240
|
|
(296
|
)
|
—
|
|
(1
|
)
|
404
|
|
Leasehold improvements
|
248
|
|
46
|
|
(30
|
)
|
—
|
|
—
|
|
264
|
|
Equipment and vehicles
|
443
|
|
97
|
|
(91
|
)
|
—
|
|
—
|
|
449
|
|
|
|
|
|
|
|
|
||||||
Total property, plant and equipment
|
10,997
|
|
2,352
|
|
(2,183
|
)
|
(412
|
)
|
(5
|
)
|
10,749
|
|
1
|
Includes disposals, reclassifications, and other adjustments.
|
(In millions of dollars)
|
|
Year ended December 31, 2016
|
|
|
|
|
|
Impairment of property, plant and equipment
|
|
412
|
|
Onerous contracts and other
|
|
72
|
|
|
|
|
|
Total impairment of assets and related onerous contract charges
|
|
484
|
|
Rogers Communications Inc.
|
22
|
2017 Annual Financial Statements
|
•
|
its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates; and
|
•
|
any directly attributable cost of preparing the asset for its intended use.
|
Intangible asset
|
Estimated useful life
|
Customer relationships
|
3 to 10 years
|
Roaming agreements
|
12 years
|
Rogers Communications Inc.
|
23
|
2017 Annual Financial Statements
|
•
|
fair value less costs to sell; and
|
•
|
value in use.
|
•
|
future cash flows;
|
•
|
terminal growth rates; and
|
•
|
discount rates.
|
•
|
Analyzing discounted cash flows - we estimate the discounted future cash flows for periods of five to ten years, depending on the CGU, and a terminal value, similar to the value in use methodology described above, while applying assumptions consistent with those a market participant would make. Future cash flows are based on our estimates of expected future operating results of the CGU. Our estimates of future cash flows, terminal values, and discount rates consider similar factors to those described above for value in use estimates; or
|
•
|
Using a market approach - we estimate the recoverable amount of the CGU using multiples of operating performance of comparable entities and precedent transactions in that industry.
|
Rogers Communications Inc.
|
24
|
2017 Annual Financial Statements
|
(In millions of dollars)
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
|
||||||||||||||||||
|
Cost prior to impairment losses
|
|
Accumulated amortization
|
|
Accumulated impairment losses
|
|
Net carrying amount
|
|
Cost prior to impairment losses
|
|
Accumulated amortization
|
|
Accumulated impairment losses
|
|
Net carrying amount
|
|
Cost prior to impairment losses
|
|
Accumulated amortization
|
|
Accumulated impairment losses
|
|
Net carrying amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Indefinite-life intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Spectrum licences
|
6,600
|
|
—
|
|
—
|
|
6,600
|
|
6,416
|
|
—
|
|
—
|
|
6,416
|
|
6,416
|
|
—
|
|
—
|
|
6,416
|
|
Broadcast licences
|
329
|
|
—
|
|
(99
|
)
|
230
|
|
329
|
|
—
|
|
(99
|
)
|
230
|
|
324
|
|
—
|
|
(99
|
)
|
225
|
|
Brand names
|
420
|
|
(270
|
)
|
(14
|
)
|
136
|
|
420
|
|
(270
|
)
|
(14
|
)
|
136
|
|
420
|
|
(270
|
)
|
(14
|
)
|
136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finite-life intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customer relationships
|
1,609
|
|
(1,525
|
)
|
—
|
|
84
|
|
1,609
|
|
(1,470
|
)
|
—
|
|
139
|
|
1,609
|
|
(1,414
|
)
|
—
|
|
195
|
|
Roaming agreements
|
524
|
|
(524
|
)
|
—
|
|
—
|
|
524
|
|
(524
|
)
|
—
|
|
—
|
|
523
|
|
(488
|
)
|
—
|
|
35
|
|
Marketing agreements
|
10
|
|
(10
|
)
|
—
|
|
—
|
|
10
|
|
(10
|
)
|
—
|
|
—
|
|
10
|
|
(10
|
)
|
—
|
|
—
|
|
Acquired program rights
|
263
|
|
(64
|
)
|
(5
|
)
|
194
|
|
289
|
|
(75
|
)
|
(5
|
)
|
209
|
|
332
|
|
(91
|
)
|
(5
|
)
|
236
|
|
Total intangible assets
|
9,755
|
|
(2,393
|
)
|
(118
|
)
|
7,244
|
|
9,597
|
|
(2,349
|
)
|
(118
|
)
|
7,130
|
|
9,634
|
|
(2,273
|
)
|
(118
|
)
|
7,243
|
|
Goodwill
|
4,126
|
|
—
|
|
(221
|
)
|
3,905
|
|
4,126
|
|
—
|
|
(221
|
)
|
3,905
|
|
4,126
|
|
—
|
|
(221
|
)
|
3,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total intangible assets and goodwill
|
13,881
|
|
(2,393
|
)
|
(339
|
)
|
11,149
|
|
13,723
|
|
(2,349
|
)
|
(339
|
)
|
11,035
|
|
13,760
|
|
(2,273
|
)
|
(339
|
)
|
11,148
|
|
(In millions of dollars)
|
December 31, 2016
|
|
December 31, 2017
|
|
||||||
|
Net carrying amount
|
|
Net additions
|
|
Amortization
1
|
|
Other
2
|
|
Net carrying amount
|
|
|
|
|
|
|
|
|
||||
Spectrum licences
|
6,416
|
|
184
|
|
—
|
|
—
|
|
6,600
|
|
Broadcast licences
|
230
|
|
11
|
|
—
|
|
(11
|
)
|
230
|
|
Brand names
|
136
|
|
—
|
|
—
|
|
—
|
|
136
|
|
Customer relationships
|
139
|
|
—
|
|
(55
|
)
|
—
|
|
84
|
|
|
6,921
|
|
195
|
|
(55
|
)
|
(11
|
)
|
7,050
|
|
Acquired program rights
|
209
|
|
59
|
|
(64
|
)
|
(10
|
)
|
194
|
|
Total intangible assets
|
7,130
|
|
254
|
|
(119
|
)
|
(21
|
)
|
7,244
|
|
Goodwill
|
3,905
|
|
—
|
|
—
|
|
—
|
|
3,905
|
|
|
|
|
|
|
|
|||||
Total intangible assets and goodwill
|
11,035
|
|
254
|
|
(119
|
)
|
(21
|
)
|
11,149
|
|
(In millions of dollars)
|
December 31, 2015
|
|
December 31, 2016
|
|
||||||
|
Net carrying amount
|
|
Net additions
|
|
Amortization
1
|
|
Other
2
|
|
Net carrying amount
|
|
|
|
|
|
|
|
|
||||
Spectrum licences
|
6,416
|
|
—
|
|
—
|
|
—
|
|
6,416
|
|
Broadcast licences
|
225
|
|
—
|
|
—
|
|
5
|
|
230
|
|
Brand names
|
136
|
|
—
|
|
—
|
|
—
|
|
136
|
|
Customer relationships
|
195
|
|
—
|
|
(58
|
)
|
2
|
|
139
|
|
Roaming agreements
|
35
|
|
—
|
|
(35
|
)
|
—
|
|
—
|
|
|
7,007
|
|
—
|
|
(93
|
)
|
7
|
|
6,921
|
|
Acquired program rights
|
236
|
|
46
|
|
(71
|
)
|
(2
|
)
|
209
|
|
Total intangible assets
|
7,243
|
|
46
|
|
(164
|
)
|
5
|
|
7,130
|
|
Goodwill
|
3,905
|
|
—
|
|
—
|
|
—
|
|
3,905
|
|
|
|
|
|
|
|
|||||
Total intangible assets and goodwill
|
11,148
|
|
46
|
|
(164
|
)
|
5
|
|
11,035
|
|
1
|
Of the
$164 million
of total amortization,
$71 million
related to acquired program rights is included in other external purchases in operating costs (see
note 6
), and
$93 million
in depreciation and amortization on the Consolidated Statements of Income.
|
2
|
Includes disposals, writedowns, reclassifications, and other adjustments.
|
Rogers Communications Inc.
|
25
|
2017 Annual Financial Statements
|
(In millions of dollars, except periods used and rates)
|
|
|
|
|
|||||
|
Carrying value of goodwill
|
|
Carrying value of indefinite-life intangible assets
|
|
Recoverable amount method
|
Period of projected cash flows (years)
|
|
Terminal growth rates (%)
|
Pre-tax discount rates (%)
|
|
|
|
|
|
|
|
|
||
Wireless
|
1,160
|
|
6,733
|
|
Value in use
|
5
|
|
0.5
|
7.9
|
Cable
|
1,379
|
|
—
|
|
Value in use
|
5
|
|
1.0
|
7.6
|
Media
|
937
|
|
241
|
|
Fair value less cost to sell
|
5
|
|
2.0
|
12.0
|
|
|
Years ended December 31
|
|
|||
(In millions of dollars)
|
Note
|
|
2017
|
|
2016
|
|
|
|
|
|
|||
Interest on borrowings
1
|
|
740
|
|
758
|
|
|
Interest on post-employment benefits liability
|
22
|
|
12
|
|
9
|
|
(Gain) loss on foreign exchange
|
|
(107
|
)
|
13
|
|
|
Change in fair value of derivative instruments
|
|
99
|
|
(16
|
)
|
|
Capitalized interest
|
|
(18
|
)
|
(18
|
)
|
|
Other
|
|
20
|
|
15
|
|
|
|
|
|
|
|||
Total finance costs
|
|
746
|
|
761
|
|
Rogers Communications Inc.
|
26
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
|||
(In millions of dollars)
|
Note
|
|
2017
|
|
2016
|
|
|
|
|
|
|||
(Income) losses from associates and joint ventures
|
17
|
|
(14
|
)
|
216
|
|
Net loss on divestitures pertaining to investments
|
|
—
|
|
11
|
|
|
Other investment income
|
|
(5
|
)
|
(36
|
)
|
|
|
|
|
|
|||
Total other (income) expense
|
|
(19
|
)
|
191
|
|
•
|
the same taxable entity; or
|
•
|
different taxable entities where these entities intend to settle current tax assets and liabilities on a net basis or the tax assets and liabilities will be realized and settled simultaneously.
|
Rogers Communications Inc.
|
27
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Current tax expense:
|
|
|
|
||
Total current tax expense
|
|
351
|
|
386
|
|
|
|
|
|
||
Deferred tax expense (recovery):
|
|
|
|
||
Origination (reversal) of temporary differences
|
|
282
|
|
(65
|
)
|
Revaluation of deferred tax balances due to legislative changes
|
|
2
|
|
3
|
|
|
|
|
|
||
Total deferred tax expense (recovery)
|
|
284
|
|
(62
|
)
|
|
|
|
|
||
Total income tax expense
|
|
635
|
|
324
|
|
|
|
Years ended December 31
|
|
||
(In millions of dollars, except rates)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Statutory income tax rate
|
|
26.7
|
%
|
26.6
|
%
|
Income before income tax expense
|
|
2,346
|
|
1,159
|
|
|
|
|
|
||
Computed income tax expense
|
|
626
|
|
308
|
|
Increase (decrease) in income tax expense resulting from:
|
|
|
|
||
Non-deductible stock-based compensation
|
|
9
|
|
5
|
|
Non-deductible portion of equity losses
|
|
—
|
|
18
|
|
Non-deductible loss on available-for-sale investments
|
|
7
|
|
—
|
|
Income tax adjustment, legislative tax change
|
|
2
|
|
3
|
|
Non-taxable portion of capital gain
|
|
(10
|
)
|
(7
|
)
|
Other
|
|
1
|
|
(3
|
)
|
|
|
|
|
||
Total income tax expense
|
|
635
|
|
324
|
|
Effective income tax rate
|
|
27.1
|
%
|
28.0
|
%
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Deferred tax assets
|
|
3
|
|
8
|
|
Deferred tax liabilities
|
|
(2,206
|
)
|
(1,917
|
)
|
|
|
|
|
||
Net deferred tax liability
|
|
(2,203
|
)
|
(1,909
|
)
|
Deferred tax assets (liabilities)
(In millions of dollars) |
Property, plant and equipment and inventory
|
|
Goodwill and other intangibles
|
|
Investments
|
|
Non-capital loss carryforwards
|
|
Other
|
|
Total
|
|
|
|
|
|
|
|
|
||||||
January 1, 2017
|
(947
|
)
|
(953
|
)
|
(61
|
)
|
24
|
|
28
|
|
(1,909
|
)
|
Expense in net income
|
(113
|
)
|
(117
|
)
|
(3
|
)
|
(6
|
)
|
(45
|
)
|
(284
|
)
|
(Expense) recovery in other comprehensive income
|
—
|
|
—
|
|
(62
|
)
|
—
|
|
57
|
|
(5
|
)
|
Other
|
—
|
|
(5
|
)
|
—
|
|
—
|
|
—
|
|
(5
|
)
|
|
|
|
|
|
|
|
||||||
December 31, 2017
|
(1,060
|
)
|
(1,075
|
)
|
(126
|
)
|
18
|
|
40
|
|
(2,203
|
)
|
Rogers Communications Inc.
|
28
|
2017 Annual Financial Statements
|
Deferred tax assets (liabilities)
(In millions of dollars)
|
Property, plant and equipment and inventory
|
|
Goodwill and other intangibles
|
|
Stub period income and partnership reserve
|
|
Investments
|
|
Non-capital loss carryforwards
|
|
Other
|
|
Total
|
|
|
|
|
|
|
|
|
|
|||||||
January 1, 2016
|
(921
|
)
|
(844
|
)
|
(178
|
)
|
(61
|
)
|
32
|
|
(85
|
)
|
(2,057
|
)
|
(Expense) recovery in net income
|
(26
|
)
|
(109
|
)
|
178
|
|
7
|
|
(8
|
)
|
20
|
|
62
|
|
(Expense) recovery in other comprehensive income
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
—
|
|
93
|
|
86
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2016
|
(947
|
)
|
(953
|
)
|
—
|
|
(61
|
)
|
24
|
|
28
|
|
(1,909
|
)
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Capital losses in Canada that can be applied against future capital gains
|
|
—
|
|
1
|
|
Tax losses in foreign jurisdictions that expire between 2023 and 2036
|
|
41
|
|
36
|
|
Deductible temporary differences in foreign jurisdictions
|
|
23
|
|
14
|
|
|
|
|
|
||
Total unrecognized temporary differences
|
|
64
|
|
51
|
|
|
Years ended December 31
|
|
||||
(In millions of dollars, except per share amounts)
|
2017
|
|
2016
|
|
||
|
|
|
||||
Numerator (basic) - Net income for the year
|
1,711
|
|
835
|
|
||
|
|
|
||||
Denominator - Number of shares (in millions):
|
|
|
||||
Weighted average number of shares outstanding - basic
|
515
|
|
515
|
|
||
Effect of dilutive securities (in millions):
|
|
|
||||
Employee stock options and restricted share units
|
2
|
|
2
|
|
||
|
|
|
||||
Weighted average number of shares outstanding - diluted
|
517
|
|
517
|
|
||
|
|
|
||||
Earnings per share:
|
|
|
||||
Basic
|
|
$3.32
|
|
|
$1.62
|
|
Diluted
|
|
$3.31
|
|
|
$1.62
|
|
Rogers Communications Inc.
|
29
|
2017 Annual Financial Statements
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Customer accounts receivable
|
|
1,515
|
|
1,455
|
|
Other accounts receivable
|
|
587
|
|
553
|
|
Allowance for doubtful accounts
|
|
(61
|
)
|
(59
|
)
|
|
|
|
|
||
Total accounts receivable
|
|
2,041
|
|
1,949
|
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Wireless devices and accessories
|
|
251
|
|
236
|
|
Other finished goods and merchandise
|
|
62
|
|
79
|
|
|
|
|
|
||
Total inventories
|
|
313
|
|
315
|
|
Rogers Communications Inc.
|
30
|
2017 Annual Financial Statements
|
Financial instrument
|
Classification
|
Measurement method
|
|
|
|
Financial assets
|
|
|
Cash and cash equivalents
|
Loans and receivables
|
Amortized cost
|
Accounts receivable
|
Loans and receivables
|
Amortized cost
|
Investments, available-for-sale
|
Available-for-sale
1
|
Fair value
|
|
|
|
Financial liabilities
|
|
|
Bank advances
|
Other financial liabilities
|
Amortized cost
|
Short-term borrowings
|
Other financial liabilities
2
|
Amortized cost
|
Accounts payable
|
Other financial liabilities
|
Amortized cost
|
Accrued liabilities
|
Other financial liabilities
|
Amortized cost
|
Long-term debt
|
Other financial liabilities
2
|
Amortized cost
|
|
|
|
Derivatives
3
|
|
|
Debt derivatives
4
|
Held-for-trading
|
Fair value
|
Bond forwards
|
Held-for-trading
|
Fair value
|
Expenditure derivatives
|
Held-for-trading
|
Fair value
|
Equity derivatives
|
Held-for-trading
5
|
Fair value
|
1
|
Subsequently measured at fair value with changes recognized in other comprehensive income. The net change subsequent to initial recognition, in the case of investments, is reclassified into net income upon disposal of the investment or when the investment becomes impaired.
|
2
|
Subsequently measured at amortized cost using the effective interest method.
|
3
|
The derivatives can be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately into net income.
|
4
|
Debt derivatives related to our credit facility and commercial paper borrowings have not been designated as hedges for accounting purposes.
|
5
|
Subsequent changes are offset against stock-based compensation expense or recovery in operating costs.
|
Derivative
|
The risk they manage
|
Types of derivative instruments
|
||
Debt derivatives
|
●
|
Impact of fluctuations in foreign exchange rates on principal and interest payments for US dollar-denominated long-term debt
|
●
|
Cross-currency interest rate exchange agreements
|
●
|
Forward foreign exchange agreements (from time to time as necessary)
|
|||
Bond forwards
|
●
|
Impact of fluctuations in market interest rates on forecasted interest payments for expected long-term debt
|
●
|
Forward interest rate agreements
|
Expenditure derivatives
|
●
|
Impact of fluctuations in foreign exchange rates on forecasted US dollar-denominated expenditures
|
●
|
Forward foreign exchange agreements
|
Equity derivatives
|
●
|
Impact of fluctuations in share price on stock-based compensation expense
|
●
|
Total return swap agreements
|
Rogers Communications Inc.
|
31
|
2017 Annual Financial Statements
|
•
|
loans and receivables
- we measure an impairment loss for loans and receivables as the excess of the carrying amount of the asset over the present value of future cash flows we expect to derive from it, if any. The difference is allocated to an allowance for doubtful accounts and recognized as a loss in net income.
|
•
|
available-for-sale financial assets
- we measure an impairment loss on available-for-sale financial assets as the excess of the cost to acquire the asset (less any impairment loss we have previously recognized) over its current fair value, if any. The difference is reclassified from the available-for-sale reserve in shareholders' equity to net income.
|
Rogers Communications Inc.
|
32
|
2017 Annual Financial Statements
|
Financial instrument
|
Financial risks
|
|
|
Financial assets
|
|
Cash and cash equivalents
|
Credit and foreign exchange
|
Accounts receivable
|
Credit and foreign exchange
|
Investments, available-for-sale
|
Liquidity, market price, and foreign exchange
|
|
|
Financial liabilities
|
|
Bank advances
|
Liquidity
|
Short-term borrowings
|
Liquidity, foreign exchange, and interest rate
|
Accounts payable
|
Liquidity
|
Accrued liabilities
|
Liquidity
|
Long-term debt
|
Liquidity, foreign exchange, and interest rate
|
|
|
Derivatives
1
|
|
Debt derivatives
|
Credit, liquidity, and foreign exchange
|
Bond forwards
|
Credit, liquidity, and interest rate
|
Expenditure derivatives
|
Credit, liquidity, and foreign exchange
|
Equity derivatives
|
Credit, liquidity, and market price
|
1
|
Derivatives can be in an asset or liability position at a point in time historically or in the future.
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Customer accounts receivables (net of allowance for doubtful accounts)
|
|
|
|
||
Less than 30 days past billing date
|
|
896
|
|
849
|
|
30-60 days past billing date
|
|
303
|
|
298
|
|
61-90 days past billing date
|
|
113
|
|
134
|
|
Greater than 90 days past billing date
|
|
73
|
|
115
|
|
|
|
|
|
||
Total
|
|
1,385
|
|
1,396
|
|
Rogers Communications Inc.
|
33
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Balance, beginning of year
|
|
59
|
|
86
|
|
Allowance for doubtful accounts expense
|
|
88
|
|
54
|
|
Net use
|
|
(86
|
)
|
(81
|
)
|
|
|
|
|
||
Balance, end of year
|
|
61
|
|
59
|
|
December 31, 2017
|
Carrying
|
|
|
Contractual
|
|
Less than
|
|
1 to 3
|
|
4 to 5
|
|
More than
|
|
(In millions of dollars)
|
amount
|
|
|
cash flows
|
|
1 year
|
|
years
|
|
years
|
|
5 years
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank advances
|
6
|
|
|
6
|
|
6
|
|
—
|
|
—
|
|
—
|
|
Short-term borrowings
|
1,585
|
|
|
1,585
|
|
1,585
|
|
—
|
|
—
|
|
—
|
|
Accounts payable and accrued liabilities
|
2,931
|
|
|
2,931
|
|
2,931
|
|
—
|
|
—
|
|
—
|
|
Long-term debt
|
14,448
|
|
|
14,555
|
|
1,756
|
|
1,800
|
|
2,050
|
|
8,949
|
|
Other long-term financial liabilities
|
9
|
|
|
9
|
|
2
|
|
3
|
|
2
|
|
2
|
|
Expenditure derivative instruments:
|
|
|
|
|
|
|
|
||||||
Cash outflow (Canadian dollar)
|
—
|
|
|
1,538
|
|
1,093
|
|
445
|
|
—
|
|
—
|
|
Cash inflow (Canadian dollar equivalent of US dollar)
|
—
|
|
|
(1,506
|
)
|
(1,054
|
)
|
(452
|
)
|
—
|
|
—
|
|
Equity derivative instruments
|
—
|
|
|
(68
|
)
|
(68
|
)
|
—
|
|
—
|
|
—
|
|
Debt derivative instruments accounted for as hedges:
|
|
|
|
|
|
|
|
||||||
Cash outflow (Canadian dollar)
|
—
|
|
|
7,417
|
|
1,435
|
|
—
|
|
—
|
|
5,982
|
|
Cash inflow (Canadian dollar equivalent of US dollar)
1
|
—
|
|
|
(8,405
|
)
|
(1,756
|
)
|
—
|
|
—
|
|
(6,649
|
)
|
Debt derivative instruments not accounted for as hedges:
|
|
|
|
|
|
|
|
||||||
Cash outflow (Canadian dollar)
|
—
|
|
|
956
|
|
956
|
|
—
|
|
—
|
|
—
|
|
Cash inflow (Canadian dollar equivalent of US dollar)
1
|
—
|
|
|
(934
|
)
|
(934
|
)
|
—
|
|
—
|
|
—
|
|
Bond forwards
|
—
|
|
|
64
|
|
64
|
|
—
|
|
—
|
|
—
|
|
Net carrying amount of derivatives (asset)
|
(1,094
|
)
|
|
|
|
|
|
|
|||||
|
17,885
|
|
|
18,148
|
|
6,016
|
|
1,796
|
|
2,052
|
|
8,284
|
|
1
|
Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives.
|
Rogers Communications Inc.
|
34
|
2017 Annual Financial Statements
|
December 31, 2016
|
Carrying
|
|
|
Contractual
|
|
Less than
|
|
1 to 3
|
|
4 to 5
|
|
More than
|
|
(In millions of dollars)
|
amount
|
|
|
cash flows
|
|
1 year
|
|
years
|
|
years
|
|
5 years
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank advances
|
71
|
|
|
71
|
|
71
|
|
—
|
|
—
|
|
—
|
|
Short-term borrowings
|
800
|
|
|
800
|
|
800
|
|
—
|
|
—
|
|
—
|
|
Accounts payable and accrued liabilities
|
2,783
|
|
|
2,783
|
|
2,783
|
|
—
|
|
—
|
|
—
|
|
Long-term debt
|
16,080
|
|
|
16,197
|
|
750
|
|
3,081
|
|
2,350
|
|
10,016
|
|
Other long-term financial liabilities
|
18
|
|
|
18
|
|
—
|
|
12
|
|
3
|
|
3
|
|
Expenditure derivative instruments:
|
|
|
|
|
|
|
|
|
|||||
Cash outflow (Canadian dollar)
|
—
|
|
|
1,708
|
|
1,240
|
|
468
|
|
—
|
|
—
|
|
Cash inflow (Canadian dollar equivalent of US dollar)
|
—
|
|
|
(1,732
|
)
|
(1,249
|
)
|
(483
|
)
|
—
|
|
—
|
|
Equity derivative instruments
|
—
|
|
|
(8
|
)
|
(8
|
)
|
—
|
|
—
|
|
—
|
|
Debt derivative instruments accounted for as hedges:
|
|
|
|
|
|
|
|
|
|||||
Cash outflow (Canadian dollar)
|
—
|
|
|
7,417
|
|
—
|
|
1,435
|
|
—
|
|
5,982
|
|
Cash inflow (Canadian dollar equivalent of US dollar)
1
|
—
|
|
|
(8,996
|
)
|
—
|
|
(1,880
|
)
|
—
|
|
(7,116
|
)
|
Debt derivative instruments not accounted for as hedges:
|
|
|
|
|
|
|
|
||||||
Cash outflow (Canadian dollar)
|
—
|
|
|
201
|
|
201
|
|
—
|
|
—
|
|
—
|
|
Cash inflow (Canadian dollar equivalent of US dollar)
1
|
—
|
|
|
(201
|
)
|
(201
|
)
|
—
|
|
—
|
|
—
|
|
Bond forwards
|
—
|
|
|
51
|
|
—
|
|
51
|
|
—
|
|
—
|
|
Net carrying amount of derivatives (asset)
|
(1,659
|
)
|
|
|
|
|
|
|
|||||
|
18,093
|
|
|
18,309
|
|
4,387
|
|
2,684
|
|
2,353
|
|
8,885
|
|
1
|
Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives.
|
December 31, 2017
|
Less than 1 year
|
|
1 to 3 years
|
|
4 to 5 years
|
|
More than 5 years
|
|
(in millions of dollars)
|
||||||||
Net interest payments
|
712
|
|
1,160
|
|
908
|
|
5,409
|
|
December 31, 2016
|
Less than 1 year
|
|
1 to 3 years
|
|
4 to 5 years
|
|
More than 5 years
|
|
(in millions of dollars)
|
||||||||
Net interest payments
|
727
|
|
1,294
|
|
1,033
|
|
5,832
|
|
Rogers Communications Inc.
|
35
|
2017 Annual Financial Statements
|
|
Net income
|
Other comprehensive income
|
||||||
(Change in millions of dollars)
|
2017
|
2016
|
2017
|
2016
|
||||
Share price of publicly-traded investments
|
|
|
|
|
||||
$1 change
|
—
|
|
—
|
|
14
|
|
14
|
|
Expenditure derivatives - change in foreign exchange rate
|
|
|
|
|
||||
$0.01 change in Cdn$ relative to US$
|
—
|
|
—
|
|
9
|
|
9
|
|
Short-term borrowings
|
|
|
|
|
||||
1% change in interest rates
|
12
|
|
6
|
|
—
|
|
—
|
|
Senior notes (floating)
|
|
|
|
|
||||
1% change in interest rates
|
—
|
|
2
|
|
—
|
|
—
|
|
Bank credit facilities (floating)
|
|
|
|
|
||||
1% change in interest rates
|
—
|
|
2
|
|
—
|
|
—
|
|
|
As at December 31, 2017
|
|
||||||
(In millions of dollars, except exchange rates)
|
Notional
amount (US$) |
|
Exchange
rate |
|
Notional
amount (Cdn$) |
|
Fair value
(Cdn$) |
|
Debt derivatives accounted for as cash flow hedges:
|
|
|
|
|
||||
As assets
|
5,200
|
|
1.0401
|
|
5,409
|
|
1,301
|
|
As liabilities
|
1,500
|
|
1.3388
|
|
2,008
|
|
(149
|
)
|
Short-term debt derivatives not accounted for as hedges:
|
|
|
|
|
||||
As liabilities
|
746
|
|
1.2869
|
|
960
|
|
(23
|
)
|
Net mark-to-market debt derivative asset
|
|
|
|
1,129
|
|
|||
Bond forwards accounted for as cash flow hedges:
|
|
|
|
|
||||
As liabilities
|
|
|
900
|
|
(64
|
)
|
||
Expenditure derivatives accounted for as cash flow hedges:
|
|
|
|
|
||||
As assets
|
240
|
|
1.2239
|
|
294
|
|
5
|
|
As liabilities
|
960
|
|
1.2953
|
|
1,243
|
|
(44
|
)
|
Net mark-to-market expenditure derivative liability
|
|
|
|
(39
|
)
|
|||
Equity derivatives not accounted for as hedges:
|
|
|
|
|
||||
As assets
|
|
|
276
|
|
68
|
|
||
|
|
|
|
|
||||
Net mark-to-market asset
|
|
|
|
1,094
|
|
Rogers Communications Inc.
|
36
|
2017 Annual Financial Statements
|
|
As at December 31, 2016
|
|
||||||
(In millions of dollars, except exchange rates)
|
Notional
amount (US$) |
|
Exchange
rate |
|
Notional
amount (Cdn$) |
|
Fair value
(Cdn$) |
|
Debt derivatives accounted for as cash flow hedges:
|
|
|
|
|
||||
As assets
|
5,200
|
|
1.0401
|
|
5,409
|
|
1,751
|
|
As liabilities
|
1,500
|
|
1.3388
|
|
2,008
|
|
(68
|
)
|
Short-term debt derivatives not accounted for as hedges:
|
|
|
|
|
||||
As liabilities
|
150
|
|
1.3407
|
|
201
|
|
—
|
|
Net mark-to-market debt derivative asset
|
|
|
|
1,683
|
|
|||
Bond forwards accounted for as cash flow hedges:
|
|
|
|
|
||||
As liabilities
|
—
|
|
—
|
|
900
|
|
(51
|
)
|
Expenditure derivatives accounted for as cash flow hedges:
|
|
|
|
|
||||
As assets
|
990
|
|
1.2967
|
|
1,284
|
|
40
|
|
As liabilities
|
300
|
|
1.4129
|
|
424
|
|
(21
|
)
|
Net mark-to-market expenditure derivative asset
|
|
|
|
19
|
|
|||
Equity derivatives not accounted for as hedges:
|
|
|
|
|
||||
As assets
|
—
|
|
—
|
|
270
|
|
8
|
|
|
|
|
|
|
||||
Net mark-to-market asset
|
|
|
|
1,659
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Proceeds on debt derivatives related to US commercial paper
|
9,692
|
|
—
|
|
Proceeds on debt derivatives related to credit facility borrowings
|
2,310
|
|
11,167
|
|
Total proceeds on debt derivatives
|
12,002
|
|
11,167
|
|
|
|
|
||
Payments on debt derivatives related to US commercial paper
|
(9,754
|
)
|
—
|
|
Payments on debt derivatives related to credit facility borrowings
|
(2,327
|
)
|
(11,159
|
)
|
Payments on termination of forward contracts
|
—
|
|
(53
|
)
|
Total payments on debt derivatives and forward contracts
|
(12,081
|
)
|
(11,212
|
)
|
|
|
|
||
Net payments on settlement of debt derivatives and forward contracts
|
(79
|
)
|
(45
|
)
|
Year ended December 31, 2017
|
Debt derivatives (hedged)
|
|
Debt derivatives (unhedged)
|
|
Bond forwards
|
|
Expenditure derivatives
|
|
Equity derivatives
|
|
Total instruments
|
|
(In millions of dollars)
|
||||||||||||
|
|
|
|
|
|
|
||||||
Derivative instruments, beginning of period
|
1,683
|
|
—
|
|
(51
|
)
|
19
|
|
8
|
|
1,659
|
|
Proceeds received from settlement of derivatives
|
—
|
|
(12,002
|
)
|
—
|
|
(1,207
|
)
|
(6
|
)
|
(13,215
|
)
|
Payment on derivatives entered
|
—
|
|
12,081
|
|
—
|
|
1,240
|
|
—
|
|
13,321
|
|
(Decrease) increase in fair value of derivatives
|
(531
|
)
|
(102
|
)
|
(13
|
)
|
(91
|
)
|
66
|
|
(671
|
)
|
|
|
|
|
|
|
|
|
|||||
Derivative instruments, end of period
|
1,152
|
|
(23
|
)
|
(64
|
)
|
(39
|
)
|
68
|
|
1,094
|
|
|
|
|
|
|
|
|
||||||
Mark-to-market asset
|
1,301
|
|
—
|
|
—
|
|
5
|
|
68
|
|
1,374
|
|
Mark-to-market liability
|
(149
|
)
|
(23
|
)
|
(64
|
)
|
(44
|
)
|
—
|
|
(280
|
)
|
|
|
|
|
|
|
|
||||||
Mark-to-market asset (liability)
|
1,152
|
|
(23
|
)
|
(64
|
)
|
(39
|
)
|
68
|
|
1,094
|
|
Rogers Communications Inc.
|
37
|
2017 Annual Financial Statements
|
Year ended December 31, 2016
|
Debt derivatives (hedged)
|
|
Debt derivatives (unhedged)
|
|
Bond forwards
|
|
Expenditure derivatives
|
|
Equity derivatives
|
|
Total instruments
|
|
(In millions of dollars)
|
||||||||||||
|
|
|
|
|
|
|
||||||
Derivative instruments, beginning of period
|
2,028
|
|
—
|
|
(91
|
)
|
158
|
|
(15
|
)
|
2,080
|
|
Proceeds received from settlement of derivatives
|
—
|
|
(11,167
|
)
|
—
|
|
(1,116
|
)
|
(2
|
)
|
(12,285
|
)
|
Payment on derivatives entered
|
—
|
|
11,159
|
|
53
|
|
1,025
|
|
—
|
|
12,237
|
|
(Decrease) increase in fair value of derivatives
|
(345
|
)
|
8
|
|
(13
|
)
|
(48
|
)
|
25
|
|
(373
|
)
|
|
|
|
|
|
|
|
|
|||||
Derivative instruments, end of period
|
1,683
|
|
—
|
|
(51
|
)
|
19
|
|
8
|
|
1,659
|
|
|
|
|
|
|
|
|
||||||
Mark-to-market asset
|
1,751
|
|
—
|
|
—
|
|
40
|
|
8
|
|
1,799
|
|
Mark-to-market liability
|
(68
|
)
|
—
|
|
(51
|
)
|
(21
|
)
|
—
|
|
(140
|
)
|
|
|
|
|
|
|
|
||||||
Mark-to-market asset (liability)
|
1,683
|
|
—
|
|
(51
|
)
|
19
|
|
8
|
|
1,659
|
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Current asset
|
|
421
|
|
91
|
|
Long-term asset
|
|
953
|
|
1,708
|
|
|
|
1,374
|
|
1,799
|
|
|
|
|
|
||
Current liability
|
|
(133
|
)
|
(22
|
)
|
Long-term liability
|
|
(147
|
)
|
(118
|
)
|
|
|
(280
|
)
|
(140
|
)
|
|
|
|
|
||
Net mark-to-market asset
|
|
1,094
|
|
1,659
|
|
Rogers Communications Inc.
|
38
|
2017 Annual Financial Statements
|
|
Year ended December 31, 2017
|
|
||||
(In millions of dollars, except exchange rates)
|
Notional
(US$)
|
|
Exchange rate
|
|
Notional (Cdn$)
|
|
|
|
|
|
|||
Credit facilities
|
|
|
|
|||
Debt derivatives entered
|
1,610
|
|
1.32
|
|
2,126
|
|
Debt derivatives settled
|
1,760
|
|
1.32
|
|
2,327
|
|
|
|
|
|
|||
Net cash paid
|
|
|
(17
|
)
|
||
|
|
|
|
|||
Commercial paper program
|
|
|
|
|||
Debt derivatives entered
|
8,266
|
|
1.30
|
|
10,711
|
|
Debt derivatives settled
|
7,521
|
|
1.29
|
|
9,692
|
|
|
|
|
|
|||
Net cash paid
|
|
|
(62
|
)
|
|
Year ended December 31, 2016
|
|
||||
(In millions of dollars, except exchange rates)
|
Notional
(US$)
|
|
Exchange rate
|
|
Notional (Cdn$)
|
|
|
|
|
|
|||
Credit facilities
|
|
|
|
|||
Debt derivatives entered
|
8,683
|
|
1.31
|
|
11,360
|
|
Debt derivatives settled
|
8,533
|
|
1.31
|
|
11,159
|
|
|
|
|
|
|||
Net cash received
|
|
|
8
|
|
1
|
Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate.
|
1
|
Bond forwards with maturity dates beyond December 31, 2017 are subject to GoC rate re-setting from time to time. The $400 million due in December 2018 was extended in December 2017 such that its rate will reset in April 2018.
|
Rogers Communications Inc.
|
39
|
2017 Annual Financial Statements
|
|
Years ended December 31
|
|
||||||||||
|
2017
|
|
2016
|
|
||||||||
(In millions of dollars, except exchange rates)
|
Notional (US$)
|
|
Exchange rate
|
|
Notional (Cdn$)
|
|
Notional (US$)
|
|
Exchange rate
|
|
Notional (Cdn$)
|
|
|
|
|
|
|
|
|
||||||
Expenditure derivatives entered
|
840
|
|
1.27
|
|
1,070
|
|
990
|
|
1.33
|
|
1,318
|
|
Expenditure derivatives settled
|
930
|
|
1.33
|
|
1,240
|
|
840
|
|
1.22
|
|
1,025
|
|
Rogers Communications Inc.
|
40
|
2017 Annual Financial Statements
|
•
|
financial assets and financial liabilities in Level 1 are valued by referring to quoted prices in active markets for identical assets and liabilities;
|
•
|
financial assets and financial liabilities in Level 2 are valued using inputs based on observable market data, either directly or indirectly, other than the quoted prices;
|
•
|
Level 3 valuations are based on inputs that are not based on observable market data.
|
|
|
|
As at December 31
|
|
||||||||
|
Carrying value
|
|
Fair value (Level 1)
|
|
Fair value (Level 2)
|
|
||||||
(In millions of dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Financial assets
|
|
|
|
|
|
|
||||||
Available-for-sale, measured at fair value:
|
|
|
|
|
|
|
||||||
Investments in publicly-traded companies
|
1,465
|
|
1,047
|
|
1,465
|
|
1,047
|
|
—
|
|
—
|
|
Held-for-trading:
|
|
|
|
|
|
|
||||||
Debt derivatives accounted for as cash flow hedges
|
1,301
|
|
1,751
|
|
—
|
|
—
|
|
1,301
|
|
1,751
|
|
Expenditure derivatives accounted for as cash flow hedges
|
5
|
|
40
|
|
—
|
|
—
|
|
5
|
|
40
|
|
Equity derivatives not accounted for as cash flow hedges
|
68
|
|
8
|
|
—
|
|
—
|
|
68
|
|
8
|
|
Total financial assets
|
2,839
|
|
2,846
|
|
1,465
|
|
1,047
|
|
1,374
|
|
1,799
|
|
|
|
|
|
|
|
|
||||||
Financial liabilities
|
|
|
|
|
|
|
||||||
Held-for-trading:
|
|
|
|
|
|
|
||||||
Debt derivatives accounted for as cash flow hedges
|
149
|
|
68
|
|
—
|
|
—
|
|
149
|
|
68
|
|
Debt derivatives not accounted for as hedges
|
23
|
|
—
|
|
—
|
|
—
|
|
23
|
|
—
|
|
Bond forwards accounted for as cash flow hedges
|
64
|
|
51
|
|
—
|
|
—
|
|
64
|
|
51
|
|
Expenditure derivatives accounted for as cash flow hedges
|
44
|
|
21
|
|
—
|
|
—
|
|
44
|
|
21
|
|
Total financial liabilities
|
280
|
|
140
|
|
—
|
|
—
|
|
280
|
|
140
|
|
|
|
As at December 31
|
|
|||||
(In millions of dollars)
|
|
2017
|
|
|
2016
|
|
||
|
Carrying amount
|
|
Fair value
1
|
|
Carrying amount
|
|
Fair value
1
|
|
Long-term debt (including current portion)
|
14,448
|
|
16,134
|
|
16,080
|
|
17,628
|
|
1
|
Long-term debt (including current portion) is measured at Level 2 in the three-level fair value hierarchy, based on year-end trading values.
|
•
|
publicly-traded companies - at fair value based on publicly quoted prices; and
|
•
|
private companies - at fair value using implied valuations from follow-on financing rounds, third-party sale negotiations, or market-based approaches.
|
•
|
joint ventures - when we have the rights to the net assets of the arrangement; and
|
•
|
joint operations - when we have the rights to the assets and obligations for the liabilities related to the arrangement.
|
Rogers Communications Inc.
|
41
|
2017 Annual Financial Statements
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Investments in:
|
|
|
|
||
Publicly-traded companies
|
|
1,465
|
|
1,047
|
|
Private companies
|
|
167
|
|
169
|
|
Investments, available-for-sale
|
|
1,632
|
|
1,216
|
|
Investments, associates and joint ventures
|
|
929
|
|
958
|
|
|
|
|
|
||
Total investments
|
|
2,561
|
|
2,174
|
|
Rogers Communications Inc.
|
42
|
2017 Annual Financial Statements
|
|
|
As at or years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Current assets
|
|
515
|
|
518
|
|
Long-term assets
|
|
3,269
|
|
3,391
|
|
Current liabilities
|
|
(1,184
|
)
|
(1,186
|
)
|
Long-term liabilities
|
|
(825
|
)
|
(1,082
|
)
|
|
|
|
|
||
Total net assets
|
|
1,775
|
|
1,641
|
|
|
|
|
|
||
Our share of net assets
|
|
927
|
|
834
|
|
|
|
|
|
||
Revenue
|
|
1,706
|
|
1,596
|
|
Expenses
|
|
(1,686
|
)
|
(2,027
|
)
|
|
|
|
|
||
Net income (loss)
|
|
20
|
|
(431
|
)
|
|
|
|
|
||
Our share of net income (loss)
|
|
14
|
|
(216
|
)
|
|
As at December 31
|
|
||
(In millions of dollars)
|
2017
|
2016
|
||
|
|
|
||
Accounts receivable securitization program
|
650
|
|
800
|
|
US commercial paper program
|
935
|
|
—
|
|
|
|
|
||
Total short-term borrowings
|
1,585
|
|
800
|
|
|
Year ended December 31, 2017
|
|
|
Year ended December 31, 2016
|
|
||||||||
|
Notional
|
|
Exchange
|
|
Notional
|
|
|
Notional
|
|
Exchange
|
|
Notional
|
|
(In millions of dollars, except exchange rates)
|
(US$)
|
|
rate
|
|
(Cdn$)
|
|
|
(US$)
|
|
rate
|
|
(Cdn$)
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds received from accounts receivable securitization
|
|
|
530
|
|
|
|
|
295
|
|
||||
Repayment of accounts receivable securitization
|
|
|
(680
|
)
|
|
|
|
(295
|
)
|
||||
Net repayment of accounts receivable securitization
|
|
|
(150
|
)
|
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||
Proceeds received from US commercial paper
|
8,267
|
|
1.30
|
|
10,712
|
|
|
—
|
|
—
|
|
—
|
|
Repayment of US commercial paper
|
(7,530
|
)
|
1.29
|
|
(9,704
|
)
|
|
—
|
|
—
|
|
—
|
|
Net proceeds received from US commercial paper
|
737
|
|
1.37
|
|
1,008
|
|
|
|
|
—
|
|
||
|
|
|
|
|
|
|
|
||||||
Net proceeds received on short-term borrowings
|
|
|
858
|
|
|
|
|
—
|
|
Rogers Communications Inc.
|
43
|
2017 Annual Financial Statements
|
|
As at December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Trade accounts receivable sold to buyer as security
|
1,355
|
|
1,460
|
|
Short-term borrowings from buyer
|
(650
|
)
|
(800
|
)
|
|
|
|
||
Overcollateralization
|
705
|
|
660
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Accounts receivable securitization program, beginning of period
|
800
|
|
800
|
|
Net repayment of accounts receivable securitization
|
(150
|
)
|
—
|
|
|
|
|
||
Accounts receivable securitization program, end of period
|
650
|
|
800
|
|
|
Year ended December 31, 2017
|
|
||||
|
Notional
|
|
Exchange
|
|
Notional
|
|
(In millions of dollars, except exchange rates)
|
(US$)
|
|
rate
|
|
(Cdn$)
|
|
|
|
|
|
|||
US commercial paper, beginning of period
|
—
|
|
—
|
|
—
|
|
Net proceeds received from US commercial paper
|
737
|
|
1.37
|
|
1,008
|
|
Discounts on issuance
1
|
9
|
|
1.33
|
|
12
|
|
Gain on foreign exchange
1
|
|
|
(85
|
)
|
||
|
|
|
|
|||
US commercial paper, end of period
|
746
|
|
1.25
|
|
935
|
|
Rogers Communications Inc.
|
44
|
2017 Annual Financial Statements
|
(In millions of dollars)
|
Decommissioning Liabilities
|
|
shomi
|
|
Other
|
|
Total
|
|
|
|
|
|
|
||||
December 31, 2016
|
35
|
|
112
|
|
20
|
|
167
|
|
Additions
|
—
|
|
—
|
|
1
|
|
1
|
|
Adjustments to existing provisions
|
4
|
|
—
|
|
—
|
|
4
|
|
Reversals
|
—
|
|
(20
|
)
|
—
|
|
(20
|
)
|
Amounts used
|
(4
|
)
|
(92
|
)
|
(17
|
)
|
(113
|
)
|
|
|
|
|
|
||||
December 31, 2017
|
35
|
|
—
|
|
4
|
|
39
|
|
|
|
|
|
|
||||
Current
|
2
|
|
—
|
|
2
|
|
4
|
|
Long-term
|
33
|
|
—
|
|
2
|
|
35
|
|
Rogers Communications Inc.
|
45
|
2017 Annual Financial Statements
|
|
|
|
|
|
As at December 31
|
|
||||
(In millions of dollars, except interest rates)
|
Due date
|
|
Principal amount
|
|
Interest rate
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
||||
Bank credit facilities (Cdn$ portion)
|
|
|
|
Floating
|
|
—
|
|
100
|
|
|
Bank credit facilities (US$ portion)
|
|
US
|
|
Floating
|
|
—
|
|
201
|
|
|
Senior notes
|
2017
|
|
250
|
|
Floating
|
|
—
|
|
250
|
|
Senior notes
|
2017
|
|
500
|
|
3.000
|
%
|
—
|
|
500
|
|
Senior notes
|
2018
|
US
|
1,400
|
|
6.800
|
%
|
1,756
|
|
1,880
|
|
Senior notes
|
2019
|
|
400
|
|
2.800
|
%
|
400
|
|
400
|
|
Senior notes
|
2019
|
|
500
|
|
5.380
|
%
|
500
|
|
500
|
|
Senior notes
|
2020
|
|
900
|
|
4.700
|
%
|
900
|
|
900
|
|
Senior notes
|
2021
|
|
1,450
|
|
5.340
|
%
|
1,450
|
|
1,450
|
|
Senior notes
|
2022
|
|
600
|
|
4.000
|
%
|
600
|
|
600
|
|
Senior notes
|
2023
|
US
|
500
|
|
3.000
|
%
|
627
|
|
671
|
|
Senior notes
|
2023
|
US
|
850
|
|
4.100
|
%
|
1,066
|
|
1,141
|
|
Senior notes
|
2024
|
|
600
|
|
4.000
|
%
|
600
|
|
600
|
|
Senior notes
|
2025
|
US
|
700
|
|
3.625
|
%
|
878
|
|
940
|
|
Senior notes
|
2026
|
US
|
500
|
|
2.900
|
%
|
627
|
|
671
|
|
Senior debentures
1
|
2032
|
US
|
200
|
|
8.750
|
%
|
251
|
|
269
|
|
Senior notes
|
2038
|
US
|
350
|
|
7.500
|
%
|
439
|
|
470
|
|
Senior notes
|
2039
|
|
500
|
|
6.680
|
%
|
500
|
|
500
|
|
Senior notes
|
2040
|
|
800
|
|
6.110
|
%
|
800
|
|
800
|
|
Senior notes
|
2041
|
|
400
|
|
6.560
|
%
|
400
|
|
400
|
|
Senior notes
|
2043
|
US
|
500
|
|
4.500
|
%
|
627
|
|
671
|
|
Senior notes
|
2043
|
US
|
650
|
|
5.450
|
%
|
816
|
|
873
|
|
Senior notes
|
2044
|
US
|
1,050
|
|
5.000
|
%
|
1,318
|
|
1,410
|
|
|
|
|
|
|
14,555
|
|
16,197
|
|
||
Deferred transaction costs and discounts
|
|
|
|
|
(107
|
)
|
(117
|
)
|
||
Less current portion
|
|
|
|
|
|
|
(1,756
|
)
|
(750
|
)
|
|
|
|
|
|
|
|
||||
Total long-term debt
|
|
|
|
|
|
|
12,692
|
|
15,330
|
|
1
|
Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December 31,
2017
and
2016
.
|
Rogers Communications Inc.
|
46
|
2017 Annual Financial Statements
|
|
Year ended December 31, 2017
|
|
|
Year ended December 31, 2016
|
|
||||||||
(In millions of dollars, except exchange rates)
|
Notional
|
|
Exchange
|
|
Notional
|
|
|
Notional
|
|
Exchange
|
|
Notional
|
|
(US$)
|
|
rate
|
|
(Cdn$)
|
|
|
(US$)
|
|
rate
|
|
(Cdn$)
|
|
|
|
|
|
|
|
|
|
|
||||||
Credit facility borrowings (Cdn$)
|
|
|
|
1,730
|
|
|
|
|
1,140
|
|
|||
Credit facility borrowings (US$)
|
960
|
|
1.32
|
|
1,269
|
|
|
2,188
|
|
1.31
|
|
2,877
|
|
Total credit facility borrowings
|
|
|
2,999
|
|
|
|
|
4,017
|
|
||||
|
|
|
|
|
|
|
|
|
|||||
Credit facility repayments (Cdn$)
|
|
|
(1,830
|
)
|
|
|
|
(1,540
|
)
|
||||
Credit facility repayments (US$)
|
(1,110
|
)
|
1.31
|
|
(1,453
|
)
|
|
(2,038
|
)
|
1.32
|
|
(2,686
|
)
|
Total credit facility repayments
|
|
|
(3,283
|
)
|
|
|
|
(4,226
|
)
|
||||
|
|
|
|
|
|
|
|
||||||
Net repayments under credit facilities
|
|
|
(284
|
)
|
|
|
|
(209
|
)
|
||||
|
|
|
|
|
|
|
|
||||||
Senior note issuances (US$)
|
—
|
|
—
|
|
—
|
|
|
500
|
|
1.34
|
|
671
|
|
Senior note repayments (Cdn$)
|
|
|
(750
|
)
|
|
|
|
(1,000
|
)
|
||||
|
|
|
|
|
|
|
|
||||||
Net repayment of senior notes
|
|
|
(750
|
)
|
|
|
|
(329
|
)
|
||||
|
|
|
|
|
|
|
|
||||||
Net repayment of long-term debt
|
|
|
(1,034
|
)
|
|
|
|
(538
|
)
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Long-term debt net of transaction costs, beginning of period
|
|
16,080
|
|
16,870
|
|
Net repayment of long-term debt
|
|
(1,034
|
)
|
(538
|
)
|
Gain on foreign exchange
|
|
(608
|
)
|
(245
|
)
|
Deferred transaction costs incurred
|
|
(3
|
)
|
(12
|
)
|
Amortization of deferred transaction costs
|
|
13
|
|
5
|
|
|
|
|
|
||
Long-term debt net of transaction costs, end of period
|
|
14,448
|
|
16,080
|
|
Rogers Communications Inc.
|
47
|
2017 Annual Financial Statements
|
1
|
Gross proceeds before transaction costs and discounts.
|
2
|
Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method.
|
(In millions of dollars)
|
|
|
2018
|
1,756
|
|
2019
|
900
|
|
2020
|
900
|
|
2021
|
1,450
|
|
2022
|
600
|
|
Thereafter
|
8,949
|
|
Total long-term debt
|
14,555
|
|
Rogers Communications Inc.
|
48
|
2017 Annual Financial Statements
|
|
|
As at December 31
|
|
|||
(In millions of dollars)
|
Note
|
|
2017
|
|
2016
|
|
|
|
|
|
|||
Deferred pension liability
|
22
|
|
460
|
|
404
|
|
Supplemental executive retirement plan
|
22
|
|
66
|
|
62
|
|
Stock-based compensation
|
24
|
|
66
|
|
64
|
|
Other
|
|
|
21
|
|
32
|
|
|
|
|
|
|||
Total other long-term liabilities
|
|
|
613
|
|
562
|
|
•
|
expected rates of salary increases for calculating increases in future benefits;
|
•
|
mortality rates for calculating the life expectancy of plan members; and
|
•
|
past service costs from plan amendments are immediately expensed in net income.
|
Rogers Communications Inc.
|
49
|
2017 Annual Financial Statements
|
|
2017
|
|
2016
|
|
Weighted average of significant assumptions:
|
|
|
||
|
|
|
||
Defined benefit obligation
|
|
|
||
Discount rate
|
3.7
|
%
|
4.1
|
%
|
Rate of compensation increase
|
3.0
|
%
|
3.0
|
%
|
Mortality rate
|
CIA Private with CPM B Scale
|
|
CIA Private with CPM B Scale
|
|
Pension expense
|
|
|
||
Discount rate
|
4.1
|
%
|
4.3
|
%
|
Rate of compensation increase
|
3.0
|
%
|
3.0
|
%
|
Mortality rate
|
CIA Private with CPM B Scale
|
|
CIA Private with CPM B Scale
|
|
|
Increase (decrease) in accrued benefit obligation
|
|
Increase (decrease) in pension expense
|
|
||||
(In millions of dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
||||
Discount rate
|
|
|
|
|
||||
Impact of 0.5% increase
|
(207
|
)
|
(174
|
)
|
(25
|
)
|
(21
|
)
|
Impact of 0.5% decrease
|
237
|
|
199
|
|
27
|
|
23
|
|
|
|
|
|
|
||||
Rate of future compensation increase
|
|
|
|
|
||||
Impact of 0.25% increase
|
21
|
|
18
|
|
4
|
|
4
|
|
Impact of 0.25% decrease
|
(21
|
)
|
(18
|
)
|
(4
|
)
|
(4
|
)
|
|
|
|
|
|
||||
Mortality rate
|
|
|
|
|
||||
Impact of 1 year increase
|
49
|
|
48
|
|
6
|
|
5
|
|
Impact of 1 year decrease
|
(52
|
)
|
(49
|
)
|
(6
|
)
|
(5
|
)
|
Rogers Communications Inc.
|
50
|
2017 Annual Financial Statements
|
•
|
overseeing the funding, administration, communication, and investment management of the plans;
|
•
|
selecting and monitoring the performance of all third parties performing duties in respect of the plans, including audit, actuarial, and investment management services;
|
•
|
proposing, considering, and approving amendments;
|
•
|
proposing, considering, and approving amendments to the Statement of Investment Policies and Procedures;
|
•
|
reviewing management and actuarial reports prepared in respect of the administration of the pension plans; and
|
•
|
reviewing and approving the audited financial statements of the pension plan funds.
|
•
|
contracting professional investment managers to execute the investment strategy following the Statement of Investment Policies and Procedures and regulatory requirements;
|
•
|
specifying the kinds of investments that can be held in the plans and monitoring compliance;
|
•
|
using asset allocation and diversification strategies; and
|
•
|
purchasing annuities from time to time.
|
|
As at December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Plan assets, at fair value
|
1,890
|
|
1,619
|
|
Accrued benefit obligations
|
(2,342
|
)
|
(2,006
|
)
|
|
|
|
||
Net deferred pension liability
|
(452
|
)
|
(387
|
)
|
|
|
|
||
Consists of:
|
|
|
||
Deferred pension asset
|
8
|
|
17
|
|
Deferred pension liability
|
(460
|
)
|
(404
|
)
|
|
|
|
||
Net deferred pension liability
|
(452
|
)
|
(387
|
)
|
Rogers Communications Inc.
|
51
|
2017 Annual Financial Statements
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Plan assets, beginning of year
|
1,619
|
|
1,432
|
|
Interest income
|
72
|
|
68
|
|
Remeasurements, return on plan assets recognized in other comprehensive income (loss) and equity
|
92
|
|
32
|
|
Contributions by employees
|
42
|
|
35
|
|
Contributions by employer
|
145
|
|
125
|
|
Benefits paid
|
(76
|
)
|
(70
|
)
|
Administrative expenses paid from plan assets
|
(4
|
)
|
(3
|
)
|
|
|
|
||
Plan assets, end of year
|
1,890
|
|
1,619
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Accrued benefit obligations, beginning of year
|
2,006
|
|
1,713
|
|
Service cost
|
137
|
|
119
|
|
Interest cost
|
81
|
|
75
|
|
Benefits paid
|
(76
|
)
|
(70
|
)
|
Contributions by employees
|
42
|
|
35
|
|
Remeasurements, recognized in other comprehensive income and equity
|
152
|
|
134
|
|
|
|
|
||
Accrued benefit obligations, end of year
|
2,342
|
|
2,006
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Asset ceiling, beginning of year
|
—
|
|
(3
|
)
|
Interest
|
—
|
|
—
|
|
Remeasurements, change in asset ceiling (excluding interest income)
|
—
|
|
3
|
|
|
|
|
||
Asset ceiling, end of year
|
—
|
|
—
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Equity securities
|
1,134
|
|
990
|
|
Debt securities
|
742
|
|
625
|
|
Other - cash
|
14
|
|
4
|
|
|
|
|
||
Total fair value of plan assets
|
1,890
|
|
1,619
|
|
Rogers Communications Inc.
|
52
|
2017 Annual Financial Statements
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Plan cost:
|
|
|
||
Service cost
|
137
|
|
119
|
|
Net interest cost
|
9
|
|
7
|
|
|
|
|
||
Net pension expense
|
146
|
|
126
|
|
Administrative expense
|
4
|
|
3
|
|
|
|
|
||
Total pension cost recognized in net income
|
150
|
|
129
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Interest income on plan assets
|
(72
|
)
|
(68
|
)
|
Interest cost on plan obligation
|
81
|
|
75
|
|
|
|
|
||
Net interest cost recognized in finance costs
|
9
|
|
7
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Return on plan assets (excluding interest income)
|
92
|
|
32
|
|
Change in financial assumptions
|
(168
|
)
|
(69
|
)
|
Effect of experience adjustments
|
16
|
|
(65
|
)
|
Change in asset ceiling
|
—
|
|
3
|
|
|
|
|
||
Remeasurement loss recognized in other comprehensive loss and equity
|
(60
|
)
|
(99
|
)
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Accrued benefit obligation, beginning of year
|
62
|
|
56
|
|
Pension expense included in employee salaries and benefits expense
|
2
|
|
5
|
|
Net interest cost recognized in finance costs
|
3
|
|
2
|
|
Remeasurement loss recognized in other comprehensive income
|
2
|
|
2
|
|
Benefits paid
|
(3
|
)
|
(3
|
)
|
|
|
|
||
Accrued benefit obligation, end of year
|
66
|
|
62
|
|
Rogers Communications Inc.
|
53
|
2017 Annual Financial Statements
|
|
Allocation of plan assets
|
Target asset allocation percentage
|
|||
|
2017
|
|
2016
|
|
|
|
|
|
|
||
Equity securities:
|
|
|
|
||
Domestic
|
11.8
|
%
|
12.4
|
%
|
7% to 17%
|
International
|
48.1
|
%
|
48.8
|
%
|
33% to 63%
|
Debt securities
|
39.3
|
%
|
38.5
|
%
|
30% to 50%
|
Other - cash
|
0.8
|
%
|
0.3
|
%
|
0% to 2%
|
|
|
|
|
||
Total
|
100.0
|
%
|
100.0
|
%
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
2017
|
|
2016
|
|
|
|
|
||
Employer contribution
|
145
|
|
125
|
|
Employee contribution
|
42
|
|
35
|
|
|
|
|
||
Total contribution
|
187
|
|
160
|
|
Rogers Communications Inc.
|
54
|
2017 Annual Financial Statements
|
Share class
|
Number of shares authorized for issue
|
|
Features
|
Voting rights
|
||
Preferred shares
|
400,000,000
|
|
●
|
Without par value
|
●
|
None
|
●
|
Issuable in series, with rights and terms of each series to be fixed by the Board prior to the issue of any series
|
|||||
RCI Class A Voting Shares
|
112,474,388
|
|
●
|
Without par value
|
●
|
Each share entitled to 50 votes
|
●
|
Each share can be converted into one Class B Non-Voting share
|
|||||
RCI Class B Non-Voting Shares
|
1,400,000,000
|
|
●
|
Without par value
|
●
|
None
|
|
|
Dividend per
|
|
Date declared
|
Date paid
|
share (dollars)
|
|
|
|
|
|
January 26, 2017
|
April 3, 2017
|
0.48
|
|
April 18, 2017
|
July 4, 2017
|
0.48
|
|
August 17, 2017
|
October 3, 2017
|
0.48
|
|
October 19, 2017
|
January 2, 2018
|
0.48
|
|
|
|
1.92
|
|
|
|
|
|
January 27, 2016
|
April 1, 2016
|
0.48
|
|
April 18, 2016
|
July 4, 2016
|
0.48
|
|
August 11, 2016
|
October 3, 2016
|
0.48
|
|
October 20, 2016
|
January 3, 2017
|
0.48
|
|
|
|
1.92
|
|
Rogers Communications Inc.
|
55
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
||||
|
|
2017
|
|
2016
|
|
||
|
|
|
|
||||
Weighted average fair value
|
|
|
$8.52
|
|
|
$6.20
|
|
|
|
|
|
||||
Risk-free interest rate
|
|
0.8
|
%
|
0.5
|
%
|
||
Dividend yield
|
|
3.2
|
%
|
3.7
|
%
|
||
Volatility of Class B Non-Voting Shares
|
|
21.2
|
%
|
21.3
|
%
|
||
Weighted average expected life
|
|
5.5 years
|
|
4.8 years
|
|
||
Weighted average time to vest
|
|
2.3 years
|
|
2.4 years
|
|
||
Weighted average time to expiry
|
|
9.9 years
|
|
9.9 years
|
|
||
Employee exit rate
|
|
3.9
|
%
|
3.9
|
%
|
||
Suboptimal exercise factor
|
|
1.4
|
|
1.5
|
|
||
Lattice steps
|
|
50
|
|
50
|
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Stock options
|
|
33
|
|
17
|
|
Restricted share units
|
|
51
|
|
45
|
|
Deferred share units
|
|
51
|
|
32
|
|
Equity derivative effect, net of interest receipt
|
|
(74
|
)
|
(33
|
)
|
|
|
|
|
||
Total stock-based compensation expense
|
|
61
|
|
61
|
|
Rogers Communications Inc.
|
56
|
2017 Annual Financial Statements
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
|
||||||
(In number of units, except prices)
|
Number of options
|
|
Weighted average exercise price
|
|
Number of options
|
|
Weighted average exercise price
|
|
||
|
|
|
|
|
||||||
Outstanding, beginning of year
|
3,732,524
|
|
|
$43.70
|
|
4,873,940
|
|
|
$41.47
|
|
Granted
|
993,740
|
|
|
$59.71
|
|
1,054,530
|
|
|
$49.95
|
|
Exercised
|
(1,603,557
|
)
|
|
$42.10
|
|
(1,811,727
|
)
|
|
$40.45
|
|
Forfeited
|
(484,817
|
)
|
|
$50.74
|
|
(384,219
|
)
|
|
$47.80
|
|
|
|
|
|
|
||||||
Outstanding, end of year
|
2,637,890
|
|
|
$49.42
|
|
3,732,524
|
|
|
$43.70
|
|
|
|
|
|
|
||||||
Exercisable, end of year
|
924,562
|
|
|
$42.32
|
|
1,770,784
|
|
|
$40.39
|
|
|
Options outstanding
|
Options exercisable
|
||||||||||
Range of exercise prices
|
Number outstanding
|
|
Weighted average remaining contractual life (years)
|
|
Weighted average exercise price
|
|
Number exercisable
|
|
Weighted average exercise price
|
|
||
|
|
|
|
|
|
|||||||
$34.32 - $34.99
|
71,615
|
|
0.16
|
|
|
$34.32
|
|
71,615
|
|
|
$34.32
|
|
$35.00 - $39.99
|
400,247
|
|
1.16
|
|
|
$37.96
|
|
400,247
|
|
|
$37.96
|
|
$40.00 - $44.99
|
582,173
|
|
3.96
|
|
|
$44.21
|
|
107,756
|
|
|
$43.97
|
|
$45.00 - $49.99
|
774,136
|
|
5.58
|
|
|
$49.17
|
|
344,944
|
|
|
$48.53
|
|
$50.00 - $59.99
|
319,884
|
|
7.93
|
|
|
$56.70
|
|
—
|
|
—
|
|
|
$60.00 - $62.82
|
489,835
|
|
9.44
|
|
|
$62.82
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|||||||
|
2,637,890
|
|
5.40
|
|
|
$49.42
|
|
924,562
|
|
|
$42.32
|
|
Rogers Communications Inc.
|
57
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
||
(In number of units)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Outstanding, beginning of year
|
|
2,237,085
|
|
2,484,405
|
|
Granted and reinvested dividends
|
|
826,081
|
|
763,364
|
|
Exercised
|
|
(984,342
|
)
|
(826,918
|
)
|
Forfeited
|
|
(266,979
|
)
|
(183,766
|
)
|
|
|
|
|
||
Outstanding, end of year
|
|
1,811,845
|
|
2,237,085
|
|
|
|
Years ended December 31
|
|
||
(In number of units)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Outstanding, beginning of year
|
|
2,396,458
|
|
1,770,871
|
|
Granted and reinvested dividends
|
|
735,117
|
|
972,894
|
|
Exercised
|
|
(333,111
|
)
|
(132,620
|
)
|
Forfeited
|
|
(470,817
|
)
|
(214,687
|
)
|
|
|
|
|
||
Outstanding, end of year
|
|
2,327,647
|
|
2,396,458
|
|
Rogers Communications Inc.
|
58
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Salaries and other short-term employee benefits
|
|
10
|
|
12
|
|
Post-employment benefits
|
|
3
|
|
5
|
|
Stock-based compensation
1
|
|
19
|
|
30
|
|
|
|
|
|
||
Total compensation
|
|
32
|
|
47
|
|
1
|
Stock-based compensation does not include the effect of changes in fair value of
Class B Non-Voting Shares
or equity derivatives.
|
•
|
the non-executive chairman of a law firm that provides a portion of our legal services; and
|
•
|
the chair of the board of a company that provides printing services to the Company.
|
(In millions of dollars)
|
Years ended December 31
|
|
Outstanding balance as at December 31
|
|
||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
||||
Printing and legal services
|
17
|
|
27
|
|
—
|
|
3
|
|
•
|
Rogers Communications Canada Inc.; and
|
•
|
Rogers Media Inc.
|
Rogers Communications Inc.
|
59
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Revenue
|
|
74
|
|
50
|
|
Purchases
|
|
198
|
|
189
|
|
|
|
As at December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Accounts receivable
|
|
80
|
|
70
|
|
Accounts payable and accrued liabilities
|
|
26
|
|
32
|
|
Rogers Communications Inc.
|
60
|
2017 Annual Financial Statements
|
|
Less than
|
|
|
|
After
|
|
|
|||
(In millions of dollars)
|
1 Year
|
|
1-3 Years
|
|
4-5 Years
|
|
5 Years
|
|
Total
|
|
|
|
|
|
|
|
|||||
Operating leases
|
202
|
|
308
|
|
167
|
|
294
|
|
971
|
|
Player contracts
1
|
111
|
|
88
|
|
10
|
|
7
|
|
216
|
|
Purchase obligations
2
|
368
|
|
346
|
|
167
|
|
121
|
|
1,002
|
|
Program rights
3
|
546
|
|
1,121
|
|
1,079
|
|
1,886
|
|
4,632
|
|
|
|
|
|
|
|
|||||
Total commitments
|
1,227
|
|
1,863
|
|
1,423
|
|
2,308
|
|
6,821
|
|
1
|
Player contracts are Toronto Blue Jays players’ salary contracts into which we have entered and are contractually obligated to pay.
|
2
|
Purchase obligations are the contractual obligations under service, product, and wireless device contracts to which we have committed.
|
3
|
Program 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.
|
Rogers Communications Inc.
|
61
|
2017 Annual Financial Statements
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Accounts receivable
|
|
(161
|
)
|
(141
|
)
|
Inventories
|
|
2
|
|
3
|
|
Other current assets
|
|
17
|
|
(12
|
)
|
Accounts payable and accrued liabilities
|
|
9
|
|
182
|
|
Unearned revenue
|
|
(21
|
)
|
(18
|
)
|
|
|
|
|
||
Total change in non-cash operating working capital items
|
|
(154
|
)
|
14
|
|
|
|
Years ended December 31
|
|
||
(In millions of dollars)
|
|
2017
|
|
2016
|
|
|
|
|
|
||
Capital expenditures before proceeds on disposition
|
|
2,510
|
|
2,352
|
|
Proceeds on disposition
|
|
(74
|
)
|
—
|
|
|
|
|
|
||
Capital expenditures
|
|
2,436
|
|
2,352
|
|
Rogers Communications Inc.
|
62
|
2017 Annual Financial Statements
|