relating to the accounts receivables we sold, and therefore, the
receivables remain recognized on our consolidated statements of
financial position and the funding received is recorded as short-term
borrowings. The buyer’s interest in these trade receivables ranks ahead
of our interest. The program restricts us from using the receivables as
collateral for any other purpose. The buyer of our trade receivables has
no claim on any of our other assets. The terms of our accounts
receivable securitization program are committed until it expires on
December 31, 2015.
As at December 31, 2013, $1,091 million of trade accounts receivables
were sold to the buyer as security for sale proceeds of $650 million,
resulting in an overcollateralization of $441 million. We incurred
interest costs of $7 million in 2013 (2012 – nil) which we recorded in
finance costs.
NOTE 17: PROVISIONS
The table below shows our provisions and their classification between
current and long-term as at December 31, 2012 and 2013.
Decommissioning
liabilities Other Total
December 31, 2012 $ 26 $ 12 $ 38
Additions 1 5 6
Adjustment to existing provisions 5 – 5
Amounts used (1) (1) (2)
December 31, 2013 $ 31 $ 16 $ 47
Current $ 6 $ 1 $ 7
Long-term 25 15 40
Other provisions include product guarantee provisions, onerous
contracts and legal provisions.
110 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT