MANAGEMENT’S DISCUSSION AND ANALYSIS
2013 Financial Report
24 MANAGEMENT’S DISCUSSION AND ANALYSIS
26 Executive Summary
26 About Rogers Communications Inc.
27 2013 Highlights
29 Understanding Our Business
30 Our Strengths
31 Industry Trends
32 Our Strategy
33 Financial and Operating Guidance
34 2013 Financial Results
34 Summary of Consolidated Results
35 Key Highlights
36 Key Changes in Financial Results This Year Compared
to 2012
37 Wireless
41 Cable
45 Business Solutions
47 Media
50 Additions to Property, Plant and Equipment
51 Review of Consolidated Performance
54 Quarterly Results
57 Balance Sheet Overview
58 Managing Our Liquidity and Financial Resources
58 Sources and Uses of Cash
61 Financial Condition
62 Financial Risk Management
65 Dividends and Share Information
66 Commitments and Other Contractual Obligations
66 Off-Balance Sheet Arrangements
67 Regulation in Our Industry
71Governance and Risk Management
71 Governance at Rogers
72 Risk Management
74 Risks and Uncertainties Affecting Our Business
78 Controls and Procedures
79 Other Information
79 Accounting Policies
82 Key Performance Indicators
84 Additional GAAP Measures
84 Non-GAAP Measures
86 Summary of Financial Results of Long-Term Debt
Guarantor
87 Five-Year Summary of Consolidated Financial Results
88 MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL
REPORTING
88 INDEPENDENT AUDITORS’ REPORT OF REGISTERED PUBLIC
ACCOUNTING FIRM
89 CONSOLIDATED FINANCIAL STATEMENTS
89 ConsolidatedStatements of Income
90 Consolidated Statements of Comprehensive Income
91 Consolidated Statements of Financial Position
92 Consolidated Statements of Changes in Shareholders’
Equity
93 Consolidated Statements of Cash Flows
94 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
94 Note 1: Nature of the Business
94 Note 2: Significant Accounting Policies
102 Note 3: Segmented Information
103 Note 4: Operating Costs
103 Note 5: Finance Costs
103 Note 6: Discontinued Operations
104 Note 7: Business Combinations
105 Note 8: Restructuring, Acquisition and Other
Expenses
106 Note 9: Income Taxes
107 Note 10: Earnings Per Share
107 Note 11: Other Current Assets
107 Note 12: Property, Plant and Equipment
108 Note 13: Goodwill and Intangible Assets
109 Note 14: Investments
110 Note 15: Other Long-Term Assets
110 Note 16: Accounts Receivable Securitization
110 Note 17: Provisions
111 Note 18: Long-Term Debt
112 Note 19: Capital Risk Management
113 Note 20: Financial Risk Management and Financial
Instruments
117 Note 21: Other Long-Term Liabilities
118 Note 22: Pensions
120 Note 23: Shareholders’ Equity
121 Note 24: Stock Options, Share Units and Share
Purchase Plans
122 Note 25: Related Party Transactions
123 Note 26: Guarantees
124 Note 27: Commitments and Contingent Liabilities
125 Note 28: Subsequent Events
2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 23