MANAGEMENT’S DISCUSSION AND ANALYSIS
COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Contractual Obligations
The table below shows our material obligations under firm contractual arrangements as at December 31, 2013. See Notes 17, 19 and 26 to our
2013 audited consolidated financial statements for more information.
(In millions of dollars)
Less than
1 Year
1-3
Years
4-5
Years
After
5 Years Total
Long-term debt 1 $ 1,170 $ 1,883 $ 1,989 $ 8,394 $ 13,436
Debt derivative instruments 2 13 22 (54) (102) (121)
Operating leases 136 194 95 95 520
Player contracts 136 132 33 7 308
Purchase obligations 3 1,670 1,019 149 160 2,998
Program rights 699 1,018 974 3,471 6,162
Pension obligations 4 96 – – – 96
Other long-term liabilities – 14 18 6 38
Total $ 3,920 $ 4,282 $ 3,204 $ 12,031 $ 23,437
1 Principal obligations of long-term debt (including current portion) due at maturity.
2 Net (asset) disbursements due at maturity. US dollar amounts have been translated into Canadian dollars at the Bank of Canada year-end rate.
3 Purchase obligations are the contractual obligations under service, product and handset contracts that we have committed to for at least the next five years.
4 Expected contributions to our pension plans in 2014. Contributions for the year ended December 31, 2015 and beyond cannot be reasonably estimated bec ause they depend on
future economic conditions and plan performance and may be affected by future government legislation.
OFF-BALANCE SHEET ARRANGEMENTS
Guarantees
As a regular part of our business, we enter into agreements that
provide for indemnification and guarantees to counterparties in
transactions involving business sale and business combination
agreements, sales of services and purchases and development of assets.
Due to the nature of these indemnifications, we are unable to make a
reasonable estimate of the maximum potential amount we could be
required to pay counterparties. Historically, we have not made any
significant payment under these indemnifications or guarantees. See
Note 26 to our 2013 audited consolidated financial statements for more
information.
Operating Leases
We have entered into operating leases for the rental of premises,
distribution facilities, equipment and wireless towers and other
contracts. Terminating any of these lease agreements would not have a
material adverse effect on us as a whole. See “Commitments and Other
Contractual obligations” and Note 27 to our 2013 audited consolidated
financial statements for quantification and more information.
66 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT