0 CBC/Radio-Canada First Quarter Financial Report 2012-2013 Confidential Draft 5 March 1, 2013 10:58 AM
CBC/Radio-Canada First Quarter Financial Report 2012-2013
1 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
2 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Table of Contents
CBC/Radio-Canada’s Commitment to Transparency and Accountability ..................................................... 3
Management Discussion and Analysis ......................................................................................................... 4
Quarter in Review ......................................................................................................................................... 5 Financial Highlights .............................................................................................................................. 5 Business Highlights.............................................................................................................................. 8
1. Performance Update .......................................................................................................................... 11 1.1 Strategic Indicators ................................................................................................................ 11 1.2 Operational Indicators ........................................................................................................... 13
2. Capability to Deliver Results .............................................................................................................. 15 2.1 People and Leadership ......................................................................................................... 15 2.2 Resource Capacity ................................................................................................................ 17
3. Results and Outlook ........................................................................................................................... 19 3.1 Results ................................................................................................................................... 19 3.2 Financial Condition, Cash Flow and Liquidity ....................................................................... 26 3.3 Outlook and Risk Update....................................................................................................... 28
4. Financial Reporting Disclosure ........................................................................................................... 30 4.1 Critical Accounting Estimates and Future Accounting Standards ......................................... 30 4.2 Transactions with Related Parties ......................................................................................... 30
5. Statement of Management Responsibility by Senior Officials ............................................................ 31
6. Condensed Consolidated Financial Statements ................................................................................ 32
7. Notes to the Condensed Consolidated Financial Statements ............................................................ 37
3 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada’s Commitment to Transparency and Accountability
As the national public broadcaster, we take very seriously our obligation to be transparent and accountable to Canadians. To meet our responsibilities, we provide access on our corporate website to information about our activities and the way we manage public resources.
Access to Information& Privacy
CRTC
CorporateReports
Policies& Practices
OmbudsmenReport
Annual Public
Meeting
Parliamentary Committees
Auditor General
Official Languages
Proactive Disclosure
Transparency& Accountability
Bulletin
• Annual Report, tabled in Parliament
• Corporate Plan and Summary
• Quarterly Financial Reports• CBC and Radio-Canada Pension Annual Report
• Public Accounts of Canada
• Semi-Annual Report Card
• Environmental Performance Reports
• Annual OAG Attest Audit
• Special Examination, which
began in the fall of 2011
• Appearances before Parliamentary
Committees (Canadian Heritage,
Official Languages)
• Review on implementation of Section 41
of the Official Languages Act report
• Annual Report on Employment Equity to
the Department of Human Resources
and Skills Development Canada
(HRSDC)
• Journalistic policies and practices
• Code of conduct
• Periodic license renewals
• Annual reporting to the CRTC covering:
• Each of the Corporation’s licensed radio,
television and specialty services
• Audit reports for all the Corporation’s
television stations eligible for LPIF
• Independent Production Reports covering
CBC Television and la Télévision de
Radio-Canada
• New media reporting requirements
• Proactive Disclosure web
pages (including posting of
travel and hospitality expenses
of the Chair and Executives)
www.cbc-radio-canada.ca
Management Discussion and Analysis 4 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Management Discussion and Analysis
Quarterly Reporting Requirement
In addition to filing an annual report, we are required— like most Canadian federal Crown corporations — to file quarterly financial reports for the first three quarters of each fiscal year. In keeping with our commitment to transparency and effective oversight of public funds, we are pleased to present this quarterly report for the period ended September 30, 2012. It can be accessed on our corporate website.
These unaudited condensed consolidated financial statements for the quarter ended September 30, 2012 have not been reviewed by our Auditor.
Seasonality
The majority of our self-generated revenue comes from advertising, which follows seasonal patterns. Advertising revenue varies according to market and general economic conditions and the programming schedule. Subscriber-based revenue is relatively more stable on a quarter-by-quarter basis. Operating expenses also tend to follow a seasonal pattern because they are influenced by the programming schedule.
Government appropriations are recognized in income based on the annual budget, which reflects seasonal impacts on expenditures and self-generated revenue.
Note Regarding Forward-Looking Statements
This report contains forward-looking statements regarding objectives, strategies, and expected financial and operational results. Forward-looking statements are based on the following broad assumptions: CBC/Radio-Canada’s government funding remains consistent with amounts announced in Federal Budget 2012; the funding received from the Local Programming Improvement Fund (LPIF) will be phased out by August 31, 2014; the television advertising market will remain healthy; and the broadcasting regulatory environment will not change significantly. Key risks and uncertainties are described in the Outlook and Risk Update section of this report. However, some risks and uncertainties are by definition difficult to predict and beyond our control. They include, but are not limited to, economic, financial, technical and regulatory conditions. These and other factors may cause actual results to differ substantially from the expectations stated or implied in forward-looking statements.
5 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Quarter in Review
Financial Highlights
13% 50.4
10%41.2
9%35.368%
269.4
Revenue and Sources of Funds for Q2 2012-2013
( i n millions of canadian dollars)
Advertising
Specialty services
Financing and other income
Government funding
83%319.7
8%31.7
6%23.3
3%10.1
Expense Breakdown for Q2 2012-2013
( i n millions of canadian dollars)
Television, radio and new media services
Specialty services
Transmission, distribution and collection
Other
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
Revenue 126,970 128,076 (0.9) 309,675 308,221 0.5
Expenses (384,829) (389,573) (1.2) (886,263) (861,188) 2.9
Government funding 269,377 291,008 (7.4) 572,425 568,890 0.6
N et result s bef ore non-
operat ing it ems 11,518 2 9 ,511 ( 6 1.0 ) ( 4 ,16 3 ) 15,9 2 3 ( 12 6 .1)
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Net results before non-operating items for the quarter amounted to $11.5 million, a decrease of $18.0 million compared to the second quarter of the previous year. This movement reflects the following changes in revenue, funding and expenses:
Revenue decreased by $1.1 million (0.9 per cent) compared to the same period in 2011−2012. This primarily reflects the reduction of the Local Programming Improvement Fund (LPIF) contribution rate effective September 1, 2012 as well as other non-recurring items. These decreases were partly offset by higher specialty services revenue.
Expenses were lower by $4.7 million (1.2 per cent) compared to the second quarter of last year. Programming costs were lower in English, French and specialty services. Overall reductions in spending following Federal Budget 2012 also contributed to this decrease.
Government funding recognized for accounting purposes was $21.6 million lower (7.4 per cent) compared to the second quarter of last year, reflecting the matching of funding to quarterly budgeted costs. Government appropriations for 2012−2013 are expected to be lower than the previous year by $27.8 million as a result of Federal Budget 2012 reductions.
Management Discussion and Analysis 6 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Other Financial Matters
Same Strategy, Different Path
On April 4, 2012, we announced that we would be facing $200 million in financial pressures over three years. This comprises a $115 million reduction phased in over three years to our annual appropriation as part of Federal Budget 2012 and $85 million of unavoidable new costs including those required to keep pace as a modern public broadcaster. In addition, we estimate one-time restructuring costs to deal with these additional pressures are estimated at $25 million.
Starting in the first quarter, we began implementing the measures outlined in our plan and we remain on track this quarter. On July 31, 2012, we shut down our analogue over-the-air television transmission network, comprising 607 transmitters across Canada. Fewer than two per cent of Canadians were affected by the shutdown. This measure will result in operating costs savings. We also put up for sale certain assets related to the shutdown, including land, transmission towers, analogue television transmission equipment, and related buildings, located at approximately 100 different sites across the country.
During this quarter we also continued to move forward with our Workforce Adjustment Process. We expect to eliminate 650 full-time equivalent positions over three years, with up to 475 reductions taking place this financial year.
Local Programming Improvement Fund
On October 25, we informed our employees of our plans to deal with the loss of the LPIF, which will be phased out over three years. We made a decision to protect as much as possible the initiatives that the LPIF allowed us to implement. Regional programming is essential to our role as the national public broadcaster and improving our presence in communities across Canada is one of the top priorities of our five-year plan, Strategy 2015.
Last year, we drew $47.1 million from the Fund to improve service for viewers in 20 markets. That money was instrumental in allowing us to enhance our service. It funded the addition of weekend news in most of our French and English markets and allowed us to add late night local news at CBC, extend by 30 minutes our supper-hour news shows in several markets, and enhance our coverage of local events, sports and weather. We will protect many of these things; but this means that other priorities will be affected by the drop in funding.
7 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
We were aware of the CRTC’s intended review of the Fund and we had put in place plans for a reduction in our current three-year financial projections. The Commission’s decision to eliminate the fund entirely means that we now have to reduce our budget by a further $28.4 million by 2013−2014. To do so, the measures we will put in place include:
Cancellation of plans for four new local radio stations.
Elimination of the cross-cultural fund (this internal fund had already been reduced in the 2012 budget process) that supported major French-English joint projects such as 8th Fire, series like CBC Radio 2 and Espace musique's Rendez-Vous, and joint coverage of events like the Arab Spring.
Reduce regional contribution to non-news programming.
Reductions to network schedules.
Reduction of communications and promotional budgets, and seeking further efficiencies yet to be determined.
For more about this plan please read the communiqué.
Management Discussion and Analysis 8 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Business Highlights
Over the quarter, we continued to implement our five-year strategic plan, Strategy 2015. The plan has three key thrusts:
More distinctly Canadian: Network programming and national public spaces
More regional: Regional presence and community spaces
More digital: New platforms and digital spaces
More Distinctly Canadian
We launched a diverse range of new Canadian programs this quarter across both French and English Services.
Radio-Canada’s fall launch included new Télévision de Radio-Canada programs Unité 9, Un air de famille and a new morning show, Alors on jase.
Literature is front and centre on multiple services, including the weekday show Plus on est de fous, plus on lit! on Première Chaîne and the new ARTV magazine Lire. One notable addition to the Première Chaîne schedule is Pas de midi sans info, a daily current-affairs show. In the evening, Radiorama serves up a selection of the day’s programming highlights across all television and radio platforms, including Radio-Canada International (RCI) and Réseau de l’information de Radio-Canada (RDI).
CBC Television and CBC Radio launched new seasons in September. On Radio One, The Current with Anna Maria Tremonti began its tenth season; other returning favourites include Q with Jian Ghomeshi, Day 6, As It Happens, The Sunday Edition and The Massey Lectures. The CBC Television schedule features new programs Over the Rainbow, Titanic, Blood and Steel, Scotiabank Giller Prize Gala and Murdoch Mysteries, as well as established favourites like Dragons' Den, Rick Mercer Report (also in its tenth season), The Big Decision and more.
As part of making CBC Television’s programming schedule more Canadian, George Stroumboulopoulos Tonight debuted in primetime on September 17. CBC Television also introduced a 30 minute version of the Lang & O’Leary Exchange (which also continues in its 60 minute format on CBC News Network) following local supper hours newscasts in most markets.
For the third consecutive year, we were the national broadcast partner of Culture Days, which featured thousands of free, hands-on, interactive activities in communities across the country from September 28 to 30. Culture Days was featured on national programming such as Q with Jian Ghomeshi and This is That and on local television and radio programs. La Maison de Radio-Canada in Montreal featured an Open Doors event in conjunction with Culture Days.
9 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
More Regional
On August 29, Radio-Canada officially opened the Maison Radio-Canada Est du Québec. With its state-of-the-art high definition (HD) equipment, it’s the most advanced and efficient multi-platform production facility in the country. For Lower St. Lawrence, North Shore and Gaspé–Magdalen Islands residents, it means access to regional news, seven days a week, on radio, television and the web, along with nearly 5,000 hours of regional production per year.
The Rive Sud/Rive Nord initiative allowed us to provide Montreal’s off-island communities with hyperlocal coverage during the recent Quebec election campaign. Through their unique deployment in the field and close monitoring of the election buzz on social networks, our teams were able to reflect residents’ concerns in reports that offered an original take on the issues. For instance, the Rive Nord crew produced a web video documentary on the youngest candidate ever to be elected to the National Assembly, Léo Bureau-Blouin.
Beginning on September 17, many of CBC Television’s local late-night newscasts expanded from 10 minutes to 30 minutes to offer increased coverage of local news and events. September 17 was also the premiere of CBC News Now with Ian Hanomansing on the CBC News Network. Broadcast live from Vancouver three hours each weeknight, this national program is in prime time in Western Canadian time zones, offering the region up-to-the-minute news.
CBC provided comprehensive coverage of the Canadian Country Music Association (CCMA) Awards in Saskatoon with a live broadcast on CBC Television on September 9, plus special content on CBCMusic.ca’s three country music web radio stations and a CBCMusic.ca channel featuring top hits and favourites from previous CCMA winners.
Between July 6 and 15, CBC and Radio-Canada offered Canadians multi-platform coverage of the 100th Calgary Stampede.
More Digital
Radio-Canada’s digital strategy continues to take shape, with a focus on enabling dialogue, original content and personalized access. Our new iPhone app offers a 360-degree tour of Canadian cities through Radio-Canada archival content. Our mobile radio app lets listeners record their response to the question of the day aired on C’est bien meilleur le matin and Pas de midi sans info. In addition, the Radio-Canada et moi personalized schedule on Facebook allows users to create a TV schedule tailored to their interests and schedule.
Since the end of the free preview period on July 2, Explora became available on demand through various francophone distributors. Early audience results confirm that Explora’s positioning is relevant and has gained audience interest.
Radio Canada International’s new web only service launched on June 24, RCI.net, has seen an increase in traffic indicating the continued relevance of RCI content.
CBC Music and Espace.mu continue to increase their content. New streams added to CBCMusic.ca include another Electronic stream, New Wave tracks personally selected by Q host Jian Ghomeshi, KIDS CBC, Bollywood, Canadian Roots and Classic Soul/R&B and a second Special Events stream. On Espace.mu music, Canadians were able to preview albums by Khaled, Louis-Jean Cormier, Catherine Durand and Zachary Richard before they came out in stores.
CBC launched the Inside the News with Peter Mansbridge website, offering a behind-the-scenes look at the news, in a magazine-style site optimized for tablets. The site includes essays by Peter Mansbridge, videos and photos, and his personal recommendations.
Management Discussion and Analysis 10 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Other Business Matters
We hosted our fourth Annual Public Meeting (APM) on September 25, 2012, in front of a live audience in St. John’s, Newfoundland and Labrador, highlighting our commitment to enhancing our regional presence. Canadians from across the country also tuned in via Twitter and webcast to hear Chair of the Board of Directors Rémi Racine, President and CEO Hubert T. Lacroix and Vice-President and Chief Financial Officer Suzanne Morris provide highlights of 2011−2012 and an overview of the Corporation’s direction for the current fiscal year and beyond. Archived material from the APM can be viewed here.
During the quarter, we were awarded the Canadian broadcast rights for the Sochi 2014 Olympic Winter Games and the Rio de Janeiro 2016 Olympic Summer Games, as well as the Toronto 2015 Pan Am Games. We will present these Games as English and French language Signature Events, telling the story of talented Canadian athletes as they compete on the national, intercontinental and world stage. Canadians will be able to access all the excitement of these Games wherever and however they choose.
On September 5, 2012, the Canadian Radio-television and Telecommunications Commission (CRTC) re-launched the public process for the renewal of CBC/Radio-Canada’s broadcasting licences. Our licence renewal hearings began on November 19. Strategy 2015 sets out our vision for the future of Canada’s national public broadcaster, but to be able to respond to the evolving broadcasting environment and the preferences of Canadians, we need the CRTC to support a flexible regulatory framework. As part of the licence renewal process, the CRTC also intends to consider our applications to introduce national advertising on CBC Radio 2 and Espace musique.
Strategy, the national marketing and promotions magazine, chose CBC as one of its five “Brands of the Year” alongside companies like Loblaw and Lululemon. We were the only Canadian media company chosen for this honour.
Radio-Canada reached a multiyear agreement with video streaming service Netflix on October 1 that is a step forward in a key element of our digital strategy — delivering content on a range of platforms.
Looking Forward
On September 16, the NHL locked out its players, resulting in the cancellation of the pre-season and some regular season games. This has affected and will continue to affect CBC Television’s programming schedule. We have developed contingency plans to manage the situation.
On July 26, CBC announced that its new broadcast centre for Kitchener-Waterloo will be located in Kitchener. Starting this winter, CBC will offer new local radio and digital news services to residents of the region.
We also announced an initiative to spark a national conversation about Canada’s upcoming 150th anniversary. Our goal is to inform, inspire and incubate local, regional and national projects to mark the occasion. In partnership with other leading Canadian organizations, we will host a series of regional “2017 STARTS NOW” events in soon-to-be-announced cities across the country, commencing in April 2013 and culminating with a national conference in June 2013.
11 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
1. Performance Update
Our key performance indicators (KPIs), discussed below, fall into two categories:
Strategic indicators include survey results regarding fulfillment of our mandate and the degree to which programming adheres to our Guiding Principles. They also include measures of our Canadian content on television.
Operational indicators include measures of audience share, website visits, subscriber counts and revenue generation for English Services and French Services.
Further details, including 2012-2013 targets for all performance indicators, are provided in our 2011−2012 Annual Report.
1.1 Strategic Indicators
Measuring our success against Strategy 2015: Everyone Every way
A central feature of Strategy 2015 is the establishment of metrics that enable on-going tracking and monitoring of our performance. We have developed metrics for each of the four guiding principles upon which our vision rests and have applied these to all English and French services.
Twice a year, in January and June, our Board of Directors is presented with a Report Card that allows it to monitor our progress in achieving our goals. Once we have updated the Board, we post an abridged version of the Report Card on our website.
In addition to monitoring the overall performance of Strategy 2015, we have developed specific key performance indicators for English Services and French Services. These KPIs broadly measure the success of each media line across the breadth of its activities. They are taken from the media lines’ business plans and reflect performance benchmarks and trends.
Indicators for Specialty Channels, New Platforms and Revenues are measured from the beginning of the fiscal year, and second quarter results to date are presented in Section 1.2 of this report.
Annual targets for these performance measures in 2012−2013 are also provided, as are prior year results.
Management Discussion and Analysis 12 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Canadian Content Expectations and Results
Regulatory requirements for Canadian content on television are specified by the CRTC, which sets expectations of service for Télévision de Radio-Canada and CBC Television. For the broadcast day between 6:00 a.m. and 12:00 a.m., a minimum of 75 per cent Canadian content is expected. For the peak period of 7:00 p.m. to 11:00 p.m., a minimum of 80 per cent Canadian content is expected. Both measures are averages over the entire broadcast year from September 1 to August 31. As shown in the table below, in the past two broadcast years, Télévision de Radio-Canada and CBC Television have exceeded the CRTC’s Canadian content expectations, both over the whole day and in prime time. Increasing Canadian programming is key to our five-year strategic plan, Strategy 2015.
Yearly
Regulatory
Expec tations
Results
Sep. 1, 2011 to
Aug 31, 2012
Results
Sep. 1, 2010 to
Aug. 31, 2011
Télévision de Radio-Canada
Broadcast day (Mon-Sun, 6:00 a.m.-12:00 a.m.) 75% 86% 86%
Prime time (Mon-Sun, 7:00 p.m.-11:00 p.m.) 80% 93% 93%
CBC Television
Broadcast day (Mon-Sun, 6:00 a.m.-12:00 a.m.) 75% 85% 84%
Prime time (Mon-Sun, 7:00 p.m.-11:00 p.m.) 80% 81% 82%
Canadian Content
13 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
1.2 Operational Indicators
Many of the principal broadcasting measures are measured from September to March and become available at the end of the fall. Performance results are not always available on a quarterly basis, such as those for CBC Radio, CBC Television and la radio and la télévision de Radio-Canada. These performance results will be added to the quarterly reports starting next quarter.
English Services
At the end of the second quarter, the KPIs shown below are mostly trending favourably, with Specialty Channel subscriptions, CBC-News Network share and revenue performing at or near expectations. However, as noted in the first quarter report, the monthly average Unique Visitor metrics are currently trending behind expectations. For the first six months to date, CBC.ca Unique Visitors are 6 per cent below the previous year and regional Unique Visitors are 3 per cent below. We will continue to monitor this online performance.
Revenue results to date are favourable to plan. However, we anticipate lower revenue than targeted for the full Fiscal Year as a result of the NHL labour disruption.
Annual
Targets
2012-2013
Results
to date
Annual
Results
2011-2012
Television
CBC News Network All– day audience share11.4% 1.3% 1.4%2
Regional
Regional web pages Monthly average unique visitors3975 K 886 K 940 K2
New Platforms
CBC.ca Monthly average unique visitors36.5 million 5.8 million 6.2 million2
Specialty Television Channels
CBC News Network Subscribers 11.4 million 11.3 million 11.3 million
bold Subscribers 2.7 million 2.6 million 2.6 million
documentary Subscribers 2.6 million 2.7 million 2.6 million
Revenue4
Conventional, specialty, online $399 million $178 million $399 million5
4. Revenue for documentary is reported at 100 per cent although CBC/ Radio-Canada owns 82 per cent. Includes
revenue from LPIF, a fund created by the CRTC to support local programming. It is available to conventional television
stations operating in non-metropolitan areas.
2. In 2011−2012, measurement was based on the television season (i.e. September - March). In 2012−2013,
measurement will be on the fiscal year (April - March).
1. Source: BBM Canada, Personal People Meter (PPM), persons aged 2 years and older.
3. Source: comScore, persons aged 2 years and older.
5. In 2011−2012, measurement excluded merchandising/ licensing revenue which are included in 2012−2013.
Management Discussion and Analysis 14 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
French Services
Based on our current performance, we’re confident that we will meet our annual targets. We surpassed our specialty channels audience target for several reasons, including a highly active news scene that attracted RDI audiences, the stabilization of Explora’s subscriber base once the free preview ended on July 2, and a successful summer season for ARTV. We anticipate our year-end results for our specialty channels to stabilize closer to target. On our digital platforms, special events in September led to a sharp increase in reach for Radio-Canada.ca and its regional microsites. Based on monthly averages throughout 2012−13, we expect to meet our annual digital targets. The same is true for our specialty channels subscriber numbers.
Where revenue is concerned, based on the second quarter consolidated results, we estimate that we’ll be close to hitting our target at the end of the year.
Annual
Targets
2012-2013
Results
to date
Annual
Results
2011-2012
Television
Specialty Channels1 Full-day audience share24.7% 5.8% 4.6%3
Regional
Regional web pages Monthly average unique visitors4497 K 566 K 476 K3
Website5
Radio-Canada.ca, TOU.TV,
Bandeapart.fm, RCI.net,
Espace.mu Monthly average unique visitors42.1 million 2.0 million 2.1 million3
Specialty Television Channels
RDI Subscribers 11.8 million 11.8 million 11.7 million
ARTV Subscribers 2.1 million 2.1 million 2.1 million
Revenue6
$253.5 million $114.9 million $228.6 million7
1. Specialty Channels includes RDI, ARTV and Explora.
7. In 2011−2012, measurement excluded ARTV and merchandising/ licensing revenue which are included in targets for
2012−2013.
Conventional, specialty, online
6. Revenue for ARTV is reported at 100 per cent although CBC/ Radio-Canada owns 85 per cent. Includes revenue from
LPIF, a fund reported by the CRTC to support local programming. It is available to conventional television stations
operating in non-metropolitan areas.
3. In 2011−2012, measurement was based on the television season (i.e. September - March). In 2012−2013,
measurement will be on the fiscal year (April - March).
2. Source: BBM Canada, Personal People Meter (PPM), Quebec francophones subscribing to a television distribution
service, aged 2 years and older.
5. Espace.mu was introduced on June 13, 2011. RCI Vision was introduced on June 20, 2011, and results are included
with RCI.net.
4. Source: comScore, persons aged 2 years and older.
15 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
2. Capability to Deliver Results
Our capability to execute our strategy and achieve planned results depends upon our people and other significant resources described below.
2.1 People and Leadership
Our people remain key to our success. We need to continue to engage our employees, encourage their professional development and implement initiatives to promote a healthy workplace. Activity in the quarter included the following:
Inclusion and Diversity gets some HELP
One of our organizational priorities is to implement inclusion and diversity initiatives that will make our workforce more representative of the Canadian population. Every year, we invite managers to apply for the Help Energize Local Projects (HELP) Fund. This $200,000 fund helps managers reach their hiring targets and recruit diversity candidates in the four designated groups — members of visible minorities, persons with disabilities, Aboriginal Peoples, and women in technical positions — by allocating funding for internships, development opportunities, and workplace accommodations. We received more than 30 proposals and have approved 26 for funding. This fund has increased our capacity to recruit and retain diverse candidates.
Action on Dialogue
In the fall of 2010, we launched a corporate-wide employee survey “Dialogue”, to measure employee engagement and identify ways to meet employee needs. Since then, we have launched many local and national initiatives to address the feedback received from employees. One key point was the need for expanded career opportunities at CBC/Radio-Canada.
As a result, between February and June 2012, we piloted a mentoring project in eight sectors across CBC/Radio-Canada. Employees were connected with mentors in an informal and non-traditional way, to have conversations focused on their specific needs and to facilitate their career and professional development. As phase two of the pilot launches this fall, we will first aim to expand our reach within the already participating sectors and then extend selectively across CBC/Radio-Canada.
In September 2012, we leveraged our recruitment system and improved the tools for both managers and employees. This will increase managers' ability to access the internal pool of talent while also making it easier for employees to access career opportunities that will help them grow.
Management Discussion and Analysis 16 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Official languages – Linguistic Duality Day
On September 13, 2012, we celebrated Linguistic Duality Day which highlights the importance of linguistic diversity and cultural openness − both on our internal portal and on the corporate blog. We know that being compliant with the Official Languages Act is important − and we work hard to ensure that we are. Over and above compliance, Linguistic Duality Day was about showing respect for English- and French-speaking communities, and deepening our relationship with all Canadians.
Our 2011−2012 Review on the Implementation of Section 41 of the Official Languages Act is posted on our corporate website. This report outlines our key initiatives for developing Official Language Minority Communities (francophones outside of Quebec and anglophones in Quebec), and promoting English and French. It also highlights our regional achievements.
Recognition
In June and October, Hubert T. Lacroix visited Toronto, Montreal and Regina to present the 2011 President’s Awards. Celebrating our people’s exceptional contributions and sharing our appreciation for their work remains one of our top priorities.
Board and Management
The Honourable James Moore, Minister of Canadian Heritage and Official Languages, announced on October 5, 2012, the reappointment of Hubert T. Lacroix as President and Chief Executive Officer of CBC/Radio-Canada for a five-year term. He was first appointed as President and CEO of CBC/Radio-Canada on January 1, 2008, for a five-year term. Prior to his appointment, Mr. Lacroix practiced law for nearly 25 years with two of Montréal’s most prominent firms and gained broadcasting experience through his involvement with Telemedia Corporation and directorships with companies in this industry.
17 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
2.2 Resource Capacity
We have four sources of direct funding: government operational and capital funding, advertising revenue, specialty services revenue and financing and other income.
50. 4 50. 7
41. 2 39. 6
35. 3 37. 8
269. 4 291. 0
0
50
100
150
200
250
300
350
400
450
2012 2011
Revenue and Sources of Funds for Three Months Ended September 30
(in
million
s o
f d
olla
rs)
419.1396.3
156. 5 161. 4
85. 2 81. 5
68. 0 65. 3
572. 4 568. 9
0
100
200
300
400
500
600
700
800
900
1,000
2012 2011
Revenue and Sources of Funds for Six Months Ended September 30
(in
million
s o
f d
olla
rs) 877.1882.1
For quarter and year-to-date variance analysis, see Section 3. Results and Outlook.
Government Funding
For the second quarter of 2012−2013, government funding represented approximately 68 per cent of total revenue and sources of funds. This included $36.6 million of amortization of deferred capital funding compared to $55.4 million in the first quarter, as a result of both accelerated depreciation on our remaining analogue transmission assets, and impairment related to the cessation of shortwave transmission of RCI programming.
The federal government announced funding reductions in its Federal Budget 2012. Our share of this reduction will be $115 million annually by 2014−2015. This includes the elimination, over that same period, of the $60 million in one-time funding for Canadian programming received since 2001. By the end of the current fiscal year, our operating appropriation is expected to be $999.5 million, a $27.8 million reduction in our operating appropriation for 2012−2013. This reduction grows to $69.6 million in 2013−2014, and to the full reduction of $115.0 million by 2014−2015.
Advertising Revenue
We generate revenue by selling advertising on our conventional television broadcasts and on other platforms. In the second quarter of 2012−2013, advertising accounted for approximately 13 per cent of our total revenue and sources of funds.
The proportion of advertising revenue in the second quarter is normally lower than in the first quarter, reflecting the seasonality of the broadcast schedule.
Government Funding Financing and other income Specialty Services Advertising
Management Discussion and Analysis 18 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Specialty Services Revenue
Specialty services, which include subscription and advertising revenue from CBC News Network, bold, documentary, Explora, ARTV and the Réseau de l’information de Radio-Canada (RDI), generated approximately 10 per cent of total revenue and sources of funds in the second quarter of 2012−2013.
Financing and other income
Financing and other income, which includes contributions from the LPIF and from activities such as program sales, merchandising activities, rental of mobile broadcasting vehicles to external parties, rental of real estate assets and leasing of space at our transmission sites, accounted for approximately 9 per cent of total revenue and sources of funds in the second quarter. Included in these funds was $11.8 million of LPIF contributions in the second quarter of 2011−2012. The fund will be completely eliminated by August 31, 2014.
Borrowing Authority
The Broadcasting Act, subsection 46.1, confers on CBC/Radio-Canada the authority to borrow as may be authorized by Parliament, subject to the approval of the Minister of Finance. Section 54 (3.1) of the Act requires that our borrowing authority be included in our corporate plan for the approval of the Minister of Finance.
The confirmation of the annual borrowing authority is currently pending and any borrowings will need to be individually approved. Guidelines established by the Department of Finance limit our borrowing activities to short-term initiatives with a quick payback period. Borrowing to meet working capital purposes is prohibited.
Under the Broadcasting Act, subsection 47(1), we are an agent of the Crown and therefore have the constitutional immunities, privileges and prerogatives that are enjoyed by the Crown. The Crown is also fully liable and financially exposed for all our actions and decisions while we are operating within our mandate. In other words, our assets and liabilities are the assets and liabilities of the Government.
19 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
3. Results and Outlook
3.1 Results
Summary – Net Results
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
Revenue 126,970 128,076 (0.9) 309,675 308,221 0.5
Expenses (384,829) (389,573) (1.2) (886,263) (861,188) 2.9
Government funding 269,377 291,008 (7.4) 572,425 568,890 0.6
N et result s bef ore non-
operat ing it ems 11,518 2 9 ,511 ( 6 1.0 ) ( 4 ,16 3 ) 15,9 2 3 ( 12 6 .1)
Non-operat ing items
Dilut ion (loss) gain from merger
transaction - (13,476) N/M - 25,775 N/M
Dividend income from merger
transaction - - N/A - 5,094 N/M
Net (loss) gain on disposal of property
and equipment (628) 37 N/M (1,124) (1,444) 22.2
N on- operat ing it ems ( 6 2 8 ) ( 13 ,4 3 9 ) 9 5.3 ( 1,12 4 ) 2 9 ,4 2 5 ( 10 3 .8 )
N et result s f o r t he period 10 ,8 9 0 16 ,0 72 ( 3 2 .2 ) ( 5,2 8 7) 4 5,3 4 8 ( 111.7)
N/A = Not applicable
N/M = Not meaningful
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Net results before non-operating items for the second quarter of 2012−2013 amounted to $11.5 million, a decrease of $18.0 million compared to the same quarter of the previous fiscal year. Revenue decreased by $1.1 million (0.9 per cent), expenditures by $4.7 million (1.2 per cent), and government funding recognized in income by $21.6 million (7.4 per cent).
On a year-to-date basis, a loss of $4.2 million was incurred before non-operating items, compared to income of $15.9 million for the first six months of 2011−2012. These results are in line with year-to-date plans, and include the financial effect of certain one-time restructuring measures we are implementing in response to the financial pressures we will be facing over the next three years. The following pages provide further detail and explanation of the net results for the quarter and the year-to-date.
Management Discussion and Analysis 20 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Revenue
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
A dvert ising
English Services 27,328 28,657 (4.6) 102,146 110,097 (7.2)
French Services 23,056 22,047 4.6 54,347 51,345 5.8
50,384 50,704 (0.6) 156,493 161,442 (3.1)
Specialt y services
CBC News Network 20,982 20,056 4.6 42,940 40,921 4.9
RDI 13,187 12,945 1.9 27,952 27,026 3.4
bo ld 1,022 954 7.1 2,070 1,971 5.0
Explora 404 - N/A 641 - N/A
documentary 1,466 1,380 6.2 2,987 2,784 7.3
ARTV 4,202 4,286 (2.0) 8,597 8,840 (2.7)
41,263 39,621 4.1 85,187 81,542 4.5
F inancing and o t her income
English Services 15,680 14,509 8.1 27,619 25,321 9.1
French Services 11,524 10,936 5.4 22,147 18,440 20.1
Corporate Services 8,119 12,306 (34.0) 18,229 21,476 (15.1)
35,323 37,751 (6.4) 67,995 65,237 4.2
TOTA L 12 6 ,9 70 12 8 ,0 76 ( 0 .9 ) 3 0 9 ,6 75 3 0 8 ,2 2 1 0 .5
N/A = Not applicable
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Compared to the same periods in 2011−2012, revenue decreased by $1.1 million (0.9 per cent) in the second quarter and increased by $1.5 million (0.5 per cent) in the first six months of the fiscal year.
Advertising
Overall, advertising revenue in the second quarter of 2012−2013 was comparable to the same three months of 2011−2012. English Services’ advertising revenue decreased by $1.3 million (4.6 per cent) this year, largely because three pre-season hockey games were aired in 2011−2012 while none were aired in 2012−2013 because of the NHL lockout. French Services’ advertising revenue grew by $1.0 million (4.6 per cent). Increased revenue from successful new platforms, mostly Tou.tv and mobility, as well as growth in conventional advertising revenue, in line with Strategy 2015 expectations, are the main factors in this increase.
On a year-to date basis, advertising revenue decreased by $4.9 million (3.1 per cent) compared to the first six months of 2011−2012. The $8.0 million (7.2 per cent) decrease in English Services’ advertising revenue was mostly attributable to stronger audiences and revenues during the 2011−2012 hockey playoffs because a Canadian team, the Vancouver Canucks, reaching the Stanley Cup finals. French Services’ advertising revenue increased by $3.0 million (5.8 per cent). As mentioned above, this is a result of the success of new platforms and growth in conventional advertising revenue.
21 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Specialty services
Specialty services revenue, which includes advertising and subscriber revenue, increased by $1.6 million (4.1 per cent) in the second quarter of 2012−2013 and by $3.6 million (4.5 per cent) in the first six months of 2012−2013 compared to the same periods last year.
In the second quarter, CBC News Network’s advertising revenue was higher by $0.9 million (4.6 per cent) as a result of increased advertising rates as CBC News Network’s audience grew.
CBC News Network is widely available across Canada, and is now in 11.3 million cable and satellite homes (compared to 11.2 million in September 2011). On a year-to-date basis, this growth in subscribers translated into increased revenue of $0.4 million. Advertising revenue also grew, by $1.6 million, due to increased sales and stronger advertising rates.
On a year-to-date basis, RDI revenues increased by $0.9 million (3.4 per cent). This was mostly due to a growth in subscribers as a result of the move from analogue transmission, as well as higher advertising sales.
Financing and other income
For the quarter ending September 30, 2012, financing and other income decreased by $2.4 million (6.4 per cent) over the same period last year. This decrease was largely due to lower LPIF revenues of $1.1 million recognized for the quarter ended September 30, 2012, compared to the same period last year, as a result of the reduction of LPIF contributions to 1 per cent of Broadcast Distribution Undertakings (BDU) revenues effective September 1, 2012. Other non-recurring items also contributed to this decrease, which was partially offset by higher income received from facility rentals, program sales and commercial production in English and French Services.
On a year-to-date basis, increases in English and French Services financing and other income were greater than decreases in Corporate Services, resulting in an overall increase of $2.8 million (4.2 per cent). In addition to the areas of increased income mentioned above, English Services’ revenue also grew on a year-to-date basis as a result of a new agreement for digital services related to the NHL playoffs.
Management Discussion and Analysis 22 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Operating Expenses
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
Television, rad io and new
med ia services
English Services 178,449 181,188 (1.5) 429,701 431,112 (0.3)
French Services 141,239 144,836 (2.5) 299,965 302,813 (0.9)
319,688 326,024 (1.9) 729,666 733,925 (0.6)
Specialt y services
CBC News Network 15,658 17,061 (8.2) 31,482 32,125 (2.0)
RDI 10,111 9,971 1.4 20,317 21,711 (6.4)
bo ld 779 1,598 (51.3) 1,352 2,484 (45.6)
Explora 663 - N/A 1,950 - N/A
documentary 936 1,037 (9.7) 1,853 1,812 2.3
ARTV 3,604 4,139 (12.9) 6,988 7,081 (1.3)
31,751 33,806 (6.1) 63,942 65,213 (1.9)
Transmission, distribut ion and
collect ion 23,285 19,531 19.2 70,595 39,171 80.2
Corporate management 2,385 2,389 (0.2) 5,221 5,599 (6.8)
Payments to private stat ions 638 528 20.8 1,272 1,299 (2.1)
Finance costs 8,021 8,390 (4.4) 15,953 16,711 (4.5)
Gain on investment in associate (939) (1,095) 14.2 (386) (730) 47.1
TOTA L 3 8 4 ,8 2 9 3 8 9 ,573 ( 1.2 ) 8 8 6 ,2 6 3 8 6 1,18 8 2 .9
N/A = Not applicable
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Operating expenses for the three months ended September 30, 2012 were $384.8 million, a decrease of $4.7 million (1.2 per cent) compared to the second quarter of 2011−2012. On a year-to-date basis, expenditures of $886.3 million increased by $25.1 million (2.9 per cent) compared to the same period in 2011−2012.
23 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Television, radio and new media services
English Services’ expenditures of $178.4 million for the second quarter decreased by $2.7 million (1.5 per cent) compared to the second quarter of 2011−2012. This variance is due in part to the Gemini awards being broadcast in March in 2013; in 2012 they were aired within the second quarter, in August 2011. An overall reduction in spending in response to the Federal Budget 2012 also contributed to the decrease.
French Services’ expenditures of $141.2 million for the second quarter were $3.6 million (2.5 per cent) lower than those of the same period last fiscal year. This variance is mostly due to a decrease in television and radio programming costs. The transformation of RCI from a short-wave and web radio service into a web-only international service also contributed to the decrease in expenses. In addition, expenditures for network circuits were lower for both the English and French Services following the implementation of the Next Generation Converged Network.
On a year-to-date basis, English Services’ expenditures decreased by $1.4 million (0.3 per cent) in comparison to the same period in 2011−2012. This decrease is partly explained by special programming and projects that occurred in the first six months of 2011−2012. In addition, expenditures related to network circuits are lower following the implementation of the Next Generation Converged Network. This was partly offset by an investment in the regions as planned in Strategy 2015 and by restructuring costs incurred as a result of recent budget reductions.
For the first six months, French Services’ expenditures decreased by $2.8 million (0.9 per cent) compared to the first half of 2011−2012. As explained above, the reduction in television and radio programming costs, the transformation of RCI and the implementation of the Next Generation Converged Network were the main factors contributing to the year-to-date decrease; however, this was partly offset by increased costs incurred in renting out facilities.
Specialty services
Specialty services’ expenditures of $31.8 million for the second quarter decreased by $2.1 million (6.1 per cent) compared to the second quarter of 2011−2012. The following were the main changes in specialty services expenses in the second quarter of the current year compared to the same period last year:
Expenses for CBC News Network decreased by $1.4 million (8.2 per cent) due to lower programming spending.
Reduced program acquisitions and decreased amortization of programming for bold as a result of the planned sale of the channel explain the decrease of $0.8 million (51.3 per cent).
A new specialty service, Explora, was launched on March 28, 2012.
In addition to the above, on a year-to-date basis, the decrease of $1.3 million (1.9 per cent) in specialty services expenses was partly related to a decrease in RDI’s expenses of $1.4 million (6.4 per cent) due to lower programming costs.
Other operating expenses
The expenditure increase of $3.8 million (19.2 per cent) for the second quarter and of $31.4 million (80.2 per cent) for the first half of the fiscal year for transmission, distribution and collection activities was primarily due to the cessation of shortwave transmission of RCI programming and the acceleration of the shutdown of remaining analogue TV transmitters. This resulted in additional depreciation, impairment charges and the recognition of decommissioning costs.
For the second quarter of 2012−2013, other operating expenses remained relatively stable in comparison to the same quarter of 2011−2012.
Management Discussion and Analysis 24 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Government Funding
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
Parliamentary appropriat ions for
operat ing expenditures 231,819 257,664 (10.0) 478,432 502,433 (4.8)
Parliamentary appropriat ions for
working capital 1,000 999 0.1 2,000 1,999 0.1 Amort izat ion of deferred capital
funding 36,558 32,345 13.0 91,993 64,458 42.7
TOTA L 2 6 9 ,3 77 2 9 1,0 0 8 ( 7.4 ) 572 ,4 2 5 56 8 ,8 9 0 0 .6
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Parliamentary appropriations for operating expenditures decreased by $25.8 million (10.0 per cent) in the second quarter of 2012−2013 compared to the same period of the previous fiscal year. On a year-to-date basis, the decrease was $24.0 million (4.8 per cent). Parliamentary appropriations are recognized based on expected needs according to forecasted revenues and forecasted expenditures for the period.
By fiscal year-end 2013, the operating appropriation recognized as revenue is expected to be $999.5 million, a $27.8 million reduction in our operating appropriation in accordance with Federal Budget 2012.
Capital funding received is recorded as deferred capital funding. It is amortized and recognized as revenue over the same periods as the related property and equipment, and intangible assets are used in CBC/Radio-Canada’s operations. The increase of $4.2 million (13.0 per cent) in the second quarter and of $27.5 million (42.7 per cent) in the first six months of 2012−2013 was mainly due to the accelerated depreciation due to the shutdown of our remaining analogue TV assets by July 31, 2012.
Non-Operating Items
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
Dilut ion (loss) gain from merger
transaction - (13,476) N/M - 25,775 N/M
Dividend income from merger
transaction - - N/A - 5,094 N/M
Net (loss) gain on disposal of property
and equipment (628) 37 N/M (1,124) (1,444) 22.2
N on- operat ing it ems ( 6 2 8 ) ( 13 ,4 3 9 ) 9 5.3 ( 1,12 4 ) 2 9 ,4 2 5 ( 10 3 .8 )
N/A = Not applicable
N/M = Not meaningful
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Non-operating losses of $1.1 million for the first six months of 2012−2013, including $0.6 million this quarter, were recorded on equipment disposals as we continue to update our transmission and technical equipment. The non-operating items in 2011−2012 were mostly attributed to a non-cash dilution gain and dividend income from the merger transaction of Sirius Canada/CSR, in which we are invested.
25 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Total Comprehensive Income (loss)
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
N et result s f o r t he period 10 ,8 9 0 16 ,0 72 ( 3 2 .2 ) ( 5,2 8 7) 4 5,3 4 8 ( 111.7)
Ot her comprehensive income
( loss)
Actuarial losses on def ined benefit
plans (329,077) (195,112) (68.7) (310,079) (133,816) (131.7)
Net unrealized gain on available-for-
sale f inancial assets - - N/A - 94 N/M
Reclassif icat ion to income of net
unrealized gain on available-for-sale
f inancial assets arising from merger
transaction - - N/A - (5,094) N/M
Total other comprehensive loss (329,077) (195,112) (68.7) (310,079) (138,816) (123.4)
Tot al comprehensive loss f o r
t he period ( 3 18 ,18 7) ( 179 ,0 4 0 ) ( 77.7) ( 3 15,3 6 6 ) ( 9 3 ,4 6 8 ) ( 2 3 7.4 )
N/A = Not applicable
N/M = Not meaningful
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Total other comprehensive losses of $329.1 million were recognized in the second quarter of 2012−2013, compared to other comprehensive losses of $195.1 million in the same quarter last year. These losses are due to non-cash fluctuations in the value of our pension plans’ obligations and assets. Their values fluctuate significantly when actual results or interest rates differ from actuarial assumptions. Actuarial gains and losses are immediately recognized in other comprehensive income in each reporting period.
The $329.1 million of actuarial losses on defined benefit plans this quarter was mainly due to:
A decrease in the discount rate applied to the pension obligation from 4.25 per cent to 3.75 per cent, contributing to actuarial losses of $396.8 million; offset by
A $67.7 million gain arising from a higher actual return on plan assets (2.9 per cent) than expected (1.5 per cent).
On a year-to-date basis, the actuarial losses of $310.1 million was also due to the decrease in discount rate applied to pension obligations, offset partially by higher than expected returns on plan assets of 4.7 per cent actual compared to an expected 3.0 per cent.
In the second quarter of 2011−2012, the other comprehensive loss of $195.1 million was primarily due to a decrease in the discount rate on the pension obligation, partially offset by higher than expected returns on plan assets. On a year-to-date basis, the 2011−2012 actuarial losses of $133.8 million were also due to the lower discount rate applied to the pension obligations, partially offset by higher than expected returns on plan assets.
We expect that macroeconomic factors will continue to impact discount rates and asset returns used in determining the actuarial gains and losses during the remainder of 2012−2013.
Further information on our pension plan is provided in Note 11 of our financial statements.
Management Discussion and Analysis 26 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
3.2 Financial Condition, Cash Flow and Liquidity
Our main sources of liquidity are parliamentary appropriations for operating, capital and working capital requirements, and commercial activities such as advertising. As a result of Federal Budget 2012, we will see our annual appropriations reduced by $115.0 million over three years, with an initial reduction of $27.8 million confirmed for 2012−2013. This will be followed by a $69.6 million reduction scheduled for 2013−2014 prior to the full reduction of $115.0 million in 2014−2015. Additionally, $47.1 million in funding from LPIF will be phased out by August 31, 2014.
In response to these reductions, one-time restructuring costs, and additional financial pressures inherent in funding the business and pursuing Strategy 2015, we are implementing a financial plan that will allow us to continue to match our planned operating expenses with available financial resources. Our financial plan includes sourcing new television and radio advertising to partially offset the reduction in federal appropriations, combined with reducing operating and capital requirements through various cost reduction initiatives. The elimination of LPIF funding is also expected to result in a decrease in certain programming.
Our cash flows from operating, investing, and financing activities for the three and six months ended September 30 are summarized in the following table. Our cash balance at September 30 2012 was $48.5 million, compared to $64.3 million at March 31, 2012.
Cash Position
(in thousands of Canadian dollars)
2 0 12 2 0 11 % change 2 0 12 2 0 11 % change
C ash - beg inning o f t he period 72 ,512 58 ,153 2 4 .7 6 4 ,2 77 6 3 ,2 2 4 1.7
Cash from (used in) operat ing act ivit ies (24,441) 25,236 (196.8) (5,016) 18,266 (127.5)
Cash used in f inancing act ivit ies (3,439) (3,439) - (29,135) (29,135) -
Cash from investing act ivit ies 3,865 3,068 26.0 18,371 30,663 (40.1)
Net change (24,015) 24,865 (196.6) (15,780) 19,794 (179.7)
C ash - end o f t he period 4 8 ,4 9 7 8 3 ,0 18 ( 4 1.6 ) 4 8 ,4 9 7 8 3 ,0 18 ( 4 1.6 )
N/A = Not applicable
N/M = Not meaningful
For t he six mont hs ended Sept ember 3 0For t he t hree mont hs ended Sept ember 3 0
Cash from (used in) operating activities
Cash used in operating activities was $24.4 million this quarter, a decrease of $49.7 million compared to the second quarter of last year. This change in cash from operations was primarily the result of using more cash to fund working capital requirements of $21.3 million combined with lower operating results.
27 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Cash used in financing activities
Cash outflows for financing activities were consistent with 2011−2012, in both the second quarter and on a year-to-date basis. Cash used of $3.4 million in the second quarter each year related to meeting obligations under finance leases. Outflows totalled $29.1 million on a year-to-date basis for semi-annual repayments of the Toronto Broadcasting Centre bonds, payments of notes payable, and meeting obligations under finance leases.
Cash from investing activities
Investing activities generated cash of $3.9 million this quarter, compared with $3.1 million of cash from investing activities in the second quarter of 2011−2012. On a year-to-date basis, cash generated of $18.4 million was lower than 2011−2012 cash from investing activities of $30.7 million. The decrease in cash generated overall from investing activities on a year-to-date basis was primarily due to last year’s activities including a $9.9 million return of capital on our investment in Sirius/CSR, and a $5.1 million dividend received in connection with the Sirius/CSR merger. Our core business investment in capital remained comparable with last year, with year-to-date parliamentary appropriations received of $49.6 million and acquisitions of new property, equipment and intangible assets totalling $35.3 million.
Management Discussion and Analysis 28 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
3.3 Outlook and Risk Update
In the second quarter, we continued to implement our three-year financial plan announced on April 4, 2012. We developed budget measures to deal with the CRTC decision to discontinue the Local Programming Improvement Fund (LPIF) by August 31, 2014, and contingency plans for the disrupted NHL season and we prepared for our licence renewal hearings scheduled for November 2012.
Strategy 2015 has been adjusted to reflect the end of the LPIF, from which we drew over $47.1 million last year to improve service for viewers in 20 smaller markets. This adjustment minimizes the impact on programming and protects the core elements of Strategy 2015. Some of the enhancements implemented to improve services and funded through the LPIF will be maintained. However, given the magnitude of the reduction, other priorities will be affected. While Strategy 2015 sets out our vision for the future of Canada’s national public broadcaster, we need a flexible regulatory framework as part of the CRTC licence renewals to enable us to respond to the evolving broadcasting environment and preferences of Canadians.
We also face other potential pressures. The success of our financial plan will depend heavily on the strength of the advertising market, our overall revenue performance, the net impact of the NHL labour disruption and the CRTC’s approval of our application for a licence change to introduce advertising/sponsorships for CBC Radio 2 and Espace musique. As well, there has been no confirmation that salary inflation funding, which the federal government has not funded since 2010−2011, will resume in 2013−2014 and future years. We continue to closely monitor the financial plan and adjust as required.
Key factors that could impact our results are summarized in the following table, which outlines changes in risks since the March 31, 2012 Annual Report and the June 30, 2012 Quarterly Report. A full discussion of risks and mitigation strategies is included in the Annual Report.
Key Risk Update
1. Budget Concerns
a. Strategy, Budget and Planning
There is a risk that the objectives of Strategy 2015 will not be met due to inadequate financial resources. Strategy 2015 requires the redirection of funds and resources and an increase in revenues to succeed. The Federal Budget 2012 appropriation reduction, other financial pressures and the recent decision to phase out the Local Programming Improvement Fund (LPIF) challenge our ability to achieve the objectives of Strategy 2015.
Budget measures to manage the loss of LPIF contributions have been developed and integrated into the three-year financial plan. While the plan is being closely monitored and adjusted as required, there are significant challenges ahead.
b. Local Programming Improvement Fund (LPIF)
The LPIF is a critical source of funding for CBC/Radio-Canada and provided $47.1 million in funding for the broadcast year ended August 31, 2012. The phased in elimination by August 31, 2014 will have a negative impact on our programming.
The CRTC decision to end LPIF contributions by August 31, 2014 will result in a decrease in programming. Some of the enhancements to local news shows funded through the LPIF will be maintained. However, given the magnitude of the reduction, other priorities will be affected, including reductions in local and national programming, reductions to communication and promotional budgets and plans for four new local radio stations will be scaled back to digital offerings only.
29 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
Key Risk Update
c. Advertising Revenue −Impact of National Hockey League (NHL) Lockout
The NHL has locked out the players and the hockey season is disrupted. There is currently no timetable for the resumption of the season.
The disrupted NHL season has impacted advertising revenues. Contingency plans have been developed for replacement programming and cost containment to address anticipated lower revenues.
2. Regulatory Issues
a. Licence Renewal
Licence renewal hearings began on November 19, 2012. The outcome of these hearings will set the terms and conditions of our CRTC licence and could determine whether we are able to meet the objectives of Strategy 2015.
We are seeking: (1) a regulatory framework that will give us more agility and flexibility to reflect the realities of our current broadcasting environment and (2) the ability to generate new revenue by adding advertising and sponsorships to CBC Radio 2 and Espace musique
Management Discussion and Analysis 30 CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
4. Financial Reporting Disclosure
4.1 Critical Accounting Estimates and Future Accounting Standards
For a description of future changes in accounting standards, see Note 2 of the condensed consolidated financial statements.
4.2 Transactions with Related Parties
The Corporation, through the normal course of business, is involved in transactions with related parties. See Note 17 of the condensed consolidated financial statements.
31 Management Discussion and Analysis CBC/Radio-Canada Second Quarter Financial Report 2012-2013
CBC/Radio-Canada Second Quarter Financial Report 2012-2013
5. Statement of Management Responsibility by Senior Officials
Management is responsible for the preparation and fair presentation of these condensed consolidated quarterly financial statements in accordance with IAS 34: Interim Financial Reporting, and for such internal controls as management determines is necessary to enable the preparation of condensed consolidated quarterly financial statements that are free from material misstatement. Management is also responsible for ensuring all other information in this quarterly financial report is consistent, where appropriate, with the condensed consolidated quarterly financial statements.
Based on our knowledge, these unaudited condensed consolidated quarterly financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of the Corporation, as at the date of and for the periods presented in the condensed consolidated quarterly financial statements.
Hubert T. Lacroix,
President and Chief Executive Officer
Suzanne Morris,
Vice-President and Chief Financial Officer
Ottawa, Canada November 21, 2012
Condensed
A SSET S
C urrent Cash
Trade and
Programm
M erchand
Prepaid e
Promisso
Net invest
Derivat ive
Assets cla
Lo ng - t erm
Property
Intangible
Assets un
Promisso
Net invest
Deferred
Investmen
T OT A L A SS
LIA B ILIT IES
C urrent
Accounts
Provision
Pension p
Bonds pa
Obligat io
Notes pay
Deferred
Opt ion lia
Derivat ive
Lo ng - t erm
Deferred
Pension p
Bonds pa
Obligat io
Notes pay
Deferred
Eq uit y(Def icit) re
Total equit
Non-contro
T OT A L EQU
T OT A L LIA B
Commitments (
The accompany
Con
(in thousands o
Consolidated Fin
d other receivables (N
ming (NOTE 5)
dising inventory
expenses (NOTE 6)
ry notes receivable
tment in f inance lease
e f inancial instruments
assif ied as held for sa
and equipment (NOTE
e assets (NOTE 8)
nder f inance lease
ry notes receivable
tment in f inance lease
charges
nt in associate (NOTE
ET S
s payable and accrued
ns (NOTE 12)
plans and employee-re
ayable
ns under f inance lease
yable
revenue
ability
e f inancial instruments
revenue
plans and employee-re
ayable
ns under f inance lease
yable
capital funding (NOT
etained earnings
ty att ributable to the C
olling interests
IT Y
B ILIT IES A N D EQU
NOTE 19)
ying notes form an inte
densed
of Canadian dollars)
nancial StatemenCBC/Radio
OTE 4)
(NOTE 18)
ale (NOTE 7)
E 7)
9)
liabilit ies (NOTE 10)
elated liabilit ies (NOTE
e
(NOTE 18)
elated liabilit ies (NOTE
e
TE 14)
Corporat ion
U IT Y
egral part of the cond
Consol
nts o-Canada Secon
E 11)
E 11)
ensed consolidated f i
lidated (un
nd Quarter Financ
CBC/Ra
inancial statements.
Statemeaudited
cial Report 2012
adio-Canada S
S
ent of Fd)
-2013
Second Quar
Sep t ember 3 0 , 2 0
48,4
143,7
214,5
9
52,9
2,2
2,5
1
1,8 4 6 7,58
991,9
22,6
44,2
48,7
52,7
21,3
6,5 1,18 8 ,3 2
1,6 55,9 0
89,6
45,7
121,4
20,3
10,2
7,8
4,4
1,8
3 0 1,6 5
2,7
626,0
282,8
48,9
116,0
531,6 1,6 0 8 ,2 6
(254,4 ( 2 54 ,4 7
4 6
( 2 54 ,0 1
1,6 55,9 0
inancia
rter Financial
0 12 M arch 3
497
772
567
919
60
29
575
174
887 8 0 5
958 1,
82
42
779
770
03
594 2 8 1,2 4
0 8 1,76
42
730
447
30
39
870
454
875
70 57 3 3
797
071
877
916
02
02 6 5 1,3
474) 74 ) 6
6 0
14 )
0 8 1,76
l Positio
32
Report 2012-
1, 2 0 12
64,277
177,331
166,104
811
113,370
2,158
2,499
133
234 2 6 ,9 17
047,988
28,435
48,242
49,903
54,077
7,806
6,208 4 2 ,6 59
6 9 ,576
124,638
39,062
129,850
20,093
9,945
7,794
3,511
1,875
11 3 6 ,779
2,587
333,207
288,533
54,206
118,885
574,027 71,4 4 5
60,996 6 0 ,9 9 6
3 56
6 1,3 52
6 9 ,576
on
-2013
CBC/Ra
33
adio-Canada
(in thousands o
R EV EN U E (Advert is
Specialt
Other inc
Financin
EX PEN SESTelevisio
Specialt
Transmis
Corpora
Payment
Finance
Gain on
GOV ER N M EParliame
Parliame
Amort iz
N et result s
N ON - OPER ADilut ion
Dividend
Net (los
N et result s f
N et result s aThe Cor
Non-con
The accompany
Co
Op erat ing lo
Second Quar
of Canadian dollars)
N OT E 13 )sing
y services
come
ng income
on, radio and new med
y services
ssion, distribut ion and
ate management
ts to private stat ions
costs
investment in associat
EN T F U N D IN G ( Nentary appropriat ion f
entary appropriat ion f
zat ion of deferred cap
bef o re no n- o p era
A T IN G IT EM S(loss) gain from merg
d income from merger
ss) gain on disposal of
f o r t he p er io d
at t r ib ut ab le t o :rporat ion
ntrolling interests
ying notes form an inte
ondense
o ss b ef o re Go ver
CBC/Radio
rter Financial
dia services costs
d collect ion (NOTE 7)
te
OT E 14 )or operat ing expendit
or working capital
ital funding
at ing i t ems
ger transact ion
t ransact ion
f property and equipm
egral part of the cond
ed Cons
nment f und ing and
o-Canada Secon
Report 2012
tures
ment
ensed consolidated f i
solidate(un
d no n- o p erat ing i
nd Quarter Financ
-2013
5
4
12 6
3
2
3 8 4
( 2 57
2
2 6 9
1
10
inancial statements.
d Statenaudited
Three mo nt
it ems
Condencial Report 2012
2 0 12
50,384
41,263
33,170
2,153
6 ,9 70 12
19,688 3
31,751
23,285
2,385
638
8,021
(939)
4 ,8 2 9 3 8
7,8 59 ) ( 2 6
231,819 2
1,000
36,558
9 ,3 77 2 9
11,518 2
-
-
(628)
( 6 2 8 ) ( 13
0 ,8 9 0 1
10,859
31
10,890
ment ofd)
t hs end ed Sep t em
nsed Consolidate-2013
2 0 11
50,704
39,621
35,424
2,327
8 ,0 76 3 0
26,024 7
33,806
19,531
2,389
528
8,390
(1,095)
9 ,573 8 8
6 1,4 9 7) ( 57
257,664 4
999
32,345
1,0 0 8 57
2 9 ,511
(13,476)
-
37
3 ,4 3 9 )
6 ,0 72
16,157
(85)
16,072
f Income
mb er 3 0 Six mo nt h
ed Financial State
2 0 12
156,493
85,187
63,495
4,500
0 9 ,6 75 3
729,666
63,942
70,595
5,221
1,272
15,953
(386)
8 6 ,2 6 3 8
76 ,58 8 ) ( 5
478,432
2,000
91,993
72 ,4 2 5 56
( 4 ,16 3 )
-
-
(1,124)
( 1,12 4 ) 2
( 5,2 8 7) 4
(5,391)
104
(5,287)
e (Loss)
hs ended Sep t emb
ements
2 0 11
161,442
81,542
60,582
4,655
0 8 ,2 2 1
733,925
65,213
39,171
5,599
1,299
16,711
(730)
8 6 1,18 8
52 ,9 6 7)
502,433
1,999
64,458
6 8 ,8 9 0
15,9 2 3
25,775
5,094
(1,444)
2 9 ,4 2 5
4 5,3 4 8
45,264
84
45,348
)
b er 3 0
Condensed
(in thousands o
C OM PR EHE
N et resu
Ot her coActuaria
Net unre
T o t al comp r
T o t al comp r
The Cor
Non-con
The accompany
Reclassasset ar
Consolidated Fin
of Canadian dollars)
N SIV E IN C OM E (
lt s f o r t he p er iod
mp rehensive incoal losses on def ined be
ealized gain on availab
rehensive loss f o r
rehensive inco me
rporat ion
ntrolling interests
ying notes form an inte
if icat ion to income of ising from merger tran
Co
nancial StatemenCBC/Radio
( LOSS)
d
me ( lo ss)enefit plans (NOTE 11)
ble-for-sale f inancial as
r t he p er io d
( lo ss) at t r ib ut ab
egral part of the cond
net unrealized gain onnsact ion
ondenseComp
nts o-Canada Secon
)
ssets
le t o :
ensed consolidated f i
n available-for-sale f in
ed Consprehens
(un
nd Quarter Financ
CBC/Ra
(3
( 3 1
(3
(3
inancial statements.
nancial
solidatedive Inco
nauditedThree mo nt
cial Report 2012
adio-Canada S
2 0 12
10,890
29,077)
-
-
8 ,18 7) ( 179
318,218) (
31
318,187) (1
d Statemome (Lod)
t hs end ed Sep t em
-2013
Second Quar
2 0 11
16,072
(195,112) (
-
-
9 ,0 4 0 ) ( 3 1
178,955) (
(85)
179,040) (
ment of oss)
mb er 3 0 Six mo nt h
rter Financial
2 0 12
(5,287)
(310,079)
-
-
15,3 6 6 ) ( 9
(315,470)
104
(315,366)
hs ended Sep t emb
34
Report 2012-
2 0 11
45,348
(133,816)
94
(5,094)
9 3 ,4 6 8 )
(93,552)
84
(93,468)
b er 3 0
-2013
CBC/Ra
35
adio-Canada
Balance as at J
Changes in pe
Net result
Actuarial
Balance at Sep
Balance as at J
Changes in pe
Net result
Actuarial
Balance at Sep
Balance as at M
Changes in pe
Net result
Actuarial
Balance at Sep
Balance as at M
Changes in pe
Net result
Actuarial
Net unreafinancial a
Reclassifgain on avarising fro
Balance at Sep
The accompany
(in thousands o
Co
(in thousands o
(in thousands o
Second Quar
June 30, 2012
riod
ts for the period
losses on defined ben
ptember 30, 2012
June 30, 2011
riod
ts for the period
losses on defined ben
ptember 30, 2011
March 31, 2012
riod
ts for the period
losses on defined ben
ptember 30, 2012
March 31, 2011
riod
ts for the period
losses on defined ben
alized gain on availablassets
ication to income of nevailable-for-sale finanom merger transaction
ptember 30, 2011
nying notes form an inte
of Canadian dollars)
ondense
of Canadian dollars)
of Canadian dollars)
CBC/Radio
rter Financial
nefit plans
Re
nefit plans
nefit plans
Re
nefit plans e-for-sale
et unrealized cial asset
n
tegral part of the conde
ed Conso
o-Canada Secon
Report 2012
(Deficit)Retained
earningTotco
63,744
10,859
(329,077)
(254,474)
etained earnings Totco
412,274
16,157
(195,112)
233,319
(Deficit)Retained
earningTotco
60,996
(5,391)
(310,079)
(254,474)
etained earnings Totco
321,871
45,264
(133,816)
-
-
233,319
densed consolidated fin
olidated (un
nd Quarter Financ
-2013
tal accumulated otheomprehensive income
-
-
-
-
tal accumulated otheomprehensive income
-
-
-
-
tal accumulated otheomprehensive income
-
-
-
-
tal accumulated otheomprehensive income
5,000
-
-
94
(5,094
-
nancial statements.
Statemenaudited
Condencial Report 2012
r e
Total equity attribto the Corpo
6
1
(32
(254
r e
Total equity attribto the Corpo
41
1
(19
233
r e
Total equity attribto the Corpo
6
(
(31
(254
r e
Total equity attribto the Corpo
32
4
(13
) (
233
Six months ende
Six months ende
ent of Ch)
Three months end
Three months end
nsed Consolidate-2013
utable oration
Non-c
3,744
0,859
9,077)
4,474)
utable oration
Non-c
2,274
6,157
5,112)
3,319
utable oration
Non-c
0,996
5,391)
0,079)
4,474)
utable oration
Non-c
6,871
5,264
3,816)
94
5,094)
3,319
ed September 30, 201
ed September 30, 201
hanges i
ded September 30, 20
ded September 30, 20
ed Financial State
controlling interests
429
31
-
460
controlling interests
2,432
(85)
-
2,347
controlling interests
356
104
-
460
controlling interests
2,263
84
-
-
-
2,347
12
11
n Equity
012
011
ements
Total
64,173
10,890
(329,077)
(254,014)
Total
414,706
16,072
(195,112)
235,666
Total
61,352
(5,287)
(310,079)
(254,014)
Total
329,134
45,348
(133,816)
94
(5,094)
235,666
y
Condensed
(in thousands o
C A SH F LOW
OPER A T IN GNet results
Adjustmen
Net lo
Intere
Finan
Depr
Amo
Depr
Impa
Loss
Dilut
Chan
Amo
Chan
Chan
Chan
Chan
Chan
Accre
M ovement
F IN A N C IN GRepaymen
Repaymen
Repaymen
Interest pa
IN V EST IN G Parliament
Acquisit io
Acquisit io
Return of
Proceeds
Collect ion
Collect ion
Dividend r
Interest re
C hang e in ca
C ash, b eg in
The accompany
Co
C ash, end o f
Chanthrou
Reclaf inanc
Consolidated Fin
of Canadian dollars)
W S FR OM ( U SED
G A C T IV IT IESs for the period
nts for:
oss (gain) on disposa
est revenue
nce costs
reciat ion of property a
rt izat ion of intangible
reciat ion of assets und
irment charge on prop
on investment in asso
ion loss (gain) f rom m
nge in deferred charge
rt izat ion of deferred c
nge in deferred operat
nge in deferred revenue
nge in pension plan ass
nge in pension plans an
nge in pension plans an
etion of promissory n
ts in working capital (
A C T IV IT IESnt of obligat ion under
nt of bonds
nt of notes
aid
A C T IV IT IEStary appropriat ions fo
on of property and equ
on of intangible assets
capital-investment in a
from disposal of prop
n of promissory notes
n of f inance lease recei
received
eceived
ash
ning o f t he p er iod
ying notes form an inte
ondense
f t he p erio d
nge in fair value of f inaugh prof it and loss
assif icat ion to incomecial asset arising from
nancial StatemenCBC/Radio
IN )
al of property and equ
and equipment
e assets
der f inance lease
perty and equipment
ociate
merger t ransaction
es
capital funding
ing appropriat ion
e [ long-term]
set
nd employee-related li
nd employee-related li
otes receivable
NOTE 16)
f inance lease
or capital funding (NO
uipment
s
associate
perty and equipment
receivable
ivables
d
egral part of the cond
ed Cons
ancial instruments desig
e of net unrealized gainm merger transact ion
nts o-Canada Secon
uipment
abilit ies [current]
abilit ies [ long-term]
OTE 14)
ensed consolidated f i
solidate(un
gnated as at fair value
n on available-for-sale
nd Quarter Financ
CBC/Ra
(
( 2
( 3
2
(2
3
( 2
7
4 8 inancial statements.
ed Statenaudited
T hree mo n
e
e
cial Report 2012
adio-Canada S
2 0 12
10,890
628
(2,153)
8,021
430 34,143
4,192
2,000
446
- (939)
-
(11,485)
(36,558)
(31,819)
105
-
(11,968)
(8,972)
(4)
18,602
4 ,4 4 1) 2
(2,451)
-
-
(988)
3 ,4 3 9 ) (
23,999
22,402) (
(1,251)
-
170
491
521
-
2,337
3 ,8 6 5
4 ,0 15) 2
72 ,512 5
8 ,4 9 7 8
ement ofd)nt hs end ed Sep t em
-2013
Second Quar
2 0 11
16,072
(37)
(2,327)
8,390
(1,409) 29,565
4,095
2,000
-
- (1,095)
13,476
(5,163)
(32,345)
(18,663)
418
(12,429)
(12,715)
1,025
(50)
36,428
5,2 3 6
(2,303)
-
-
(1,136)
3 ,4 3 9 ) (
25,000
(24,099)
(1,442)
-
235
457
485
-
2,432
3 ,0 6 8
4 ,8 6 5 (
58 ,153 6
8 3 ,0 18 4
f Cash F
Six mo nt hmb er 3 0
rter Financial
2 0 12
(5,287)
1,124
(4,500)
15,953
18 81,353
8,565
4,000
6,986
- (386)
-
(13,497)
(91,993)
-
210
-
1,104
(17,215)
(9)
8,558
( 5,0 16 )
(4,994)
(5,253)
(2,797)
(16,091)
2 9 ,13 5) (
49,568
(35,322)
(2,784)
-
210
973
1,032
-
4,694
18 ,3 71
15,78 0 )
6 4 ,2 77
4 8 ,4 9 7
Flows
hs end ed Sep t emb
36
Report 2012-
2 0 11
45,348
1,444
(4,655)
16,711
(1,524) 59,469
8,257
4,000
-
(5,094) (730)
(25,775)
(6,635)
(64,458)
-
263
(9,871)
(584)
1,964
(50)
186
18 ,2 6 6
(4,717)
(4,879)
(2,670)
(16,869)
( 2 9 ,13 5)
50,568
(39,787)
(2,233)
9,855
364
907
962
5,094
4,933
3 0 ,6 6 3
19 ,79 4
6 3 ,2 2 4
8 3 ,0 18
b er 3 0
-2013
CBC/Ra
37
adio-Canada
NotesStateSepte
(Canadian
(unaudited
1. G
CBC/Radfederal coaddress oCBC/Radboth the fe
As the natboth officiand its reg
These conDirectors
2. Si
A. State
The Corpo131.1 of thReportingthe Accou
B. Basis
Section 13and makeReports fo
These inte34 and thestatementupdate onMarch 31financial speriods prconsolidaannual co
Second Quar
s to the ments f
ember 3
n $)
d)
eneral
io-Canada (thorporate incomof the Corporaio-Canada is ederal and pr
tional public bal languagesgions to natio
ndensed conson Novembe
ignifican
ement of Co
oration prepahe Financial A
g (IAS 34), as unting Standa
s of Prepar
31.1 of the Fie public quartefor Crown Cor
erim consoliderefore do nots. These inten the latest co, 2012. Accorstatements. Tresented. Theted financial s
onsolidated fin
CBC/Radio
rter Financial
Condenfor the T30, 2012
Informa
he Corporatiome tax by virtuation’s registenot subject to
rovincial level
broadcaster, t, delivering d
onal and regio
solidated finar 21, 2012.
nt Acco
ompliance
ared these conAdministrationissued by the
ards Board (Ac
ration
inancial Admierly financial rporations.
ated financiaot include all derim condenseomplete set ofrdingly, they s
The interim coe accounting statements arnancial statem
o-Canada Secon
Report 2012
nsed CoThree a2
ation
on) is a federaue of the Inco
ered office is 1o any provincs.
the Corporatioistinct and pre
onal audience
ncial stateme
unting P
ndensed conson Act and Intee InternationacSB).
inistration Actreports in com
l statements adisclosures thed consolidatf audited annushould be reaondensed conpolicies usedre consistent
ments.
Notend Quarter Financ
-2013
onsolidand Six M
al Crown Corpome Tax Act (181 Queen Stcial corporate
on provides redominantly C
es.
ents have bee
Policies
solidated finaernational Accal Accounting
t requires thatmpliance with
are presentedat would othe
ted financial sual financial sd in conjunctisolidated fina in the preparwith those dis
es to the Condencial Report 2012
ated FinMonth P
poration domi(Canada) andtreet, Ottawa income taxes
radio, televisioCanadian pro
en authorized
s
ncial statemecounting StanStandards Bo
t most parenth the Standard
d on a condenerwise be reqstatements arstatements foion with the aancial statemeration of thesesclosed in the
nsed Consolidate-2013
nancial Periods
iciled in Canad the Regulati
ON K1P 1K9s but is subjec
on and new mogramming to
for issuance
ents in accordndard 34 Interoard (IASB) a
Crown Corpod on Quarterly
nsed basis asuired in a full e intended tor the year endudited annuaents are unaue interim conde Corporation
ed Financial State
Ended
ada and subjeons thereto. T
9. ct to sales tax
media servicesreflect Canad
by the Board
dance with Seerim Financial and as adopte
orations preply Financial
s permitted byset of financi provide an ded
al consolidatedudited for all densed
n’s last audited
ements
ect to The
xes at
s in da
d of
ection led by
are
y IAS ial
d
d
Notes to the
2. S
C. Futu
The Corpoannual imfollowing impact of
IFRS 7 A
IFRS 7 waincluding are effecti
IFRS 9 F
IFRS 9, iscurrent IAbased on contractuaIASB pubadditional
IFRS 10
IFRS 10 rSpecial PpreparatioStandard consolidaJanuary 1
IFRS 11
IFRS 11, Controlledobligationstandard ato accounbeginning
IFRS 12
IFRS 12 aunconsoliof, and risits financiaperiods be
IFRS 13
IFRS 13 ddisclosuremeasuremannual pe
e Condensed Con
ignifican
re Account
oration has remprovements 2
may have an each pronoun
Amendments
as amended ithe possible eive for annua
Financial Inst
ssued in NoveAS 39 Financia
how an entityal cash flow clished amend disclosures t
Consolidate
replaces IAS 2Purpose Entitieon of consolidestablishes ated financial s, 2013.
Joint Arrang
issued in Mayd Entities - Nos of a joint araddresses inc
nt for interestsg on or after J
Disclosure o
applies to entidated structu
sk associated al position, fineginning on o
Fair Value M
defines fair vaes about fair vments or discleriods beginni
nsolidated FinanCBC/Radio
nt Acco
ing Change
eviewed new 2009−2011 thimpact on the
ncement on it
s to IFRS 7 F
in October 20effects of anyl reporting pe
struments
ember 2009 aial Instrumenty manages itscharacteristicsdments that dto annual per
ed Financial
27 Consolidaies. The objecdated financiaa single basis statements. IF
gements
y 2011, superon-monetary Crrangement, rconsistenciess in jointly conanuary 1, 201
of Interests i
ities that havered entity. It awith, the Cor
nancial perforor after Janua
Measuremen
alue, sets out value measurlosures abouting on or afte
cial Statementso-Canada Secon
ounting P
es
and revised ahat have beene Corporationts consolidate
Financial Ins
010 to providey residual riskeriods beginni
and amended ts: Recognitios financial inss of its financiefer the mand
riods beginnin
l Statements
ated and Sepactive of IFRS 1al statements
of control to FRS 10 will b
rsedes IAS 31Contributionsather than its
s in the reportntrolled entitie13.
in Other Ent
e an interest iaims at enablrporation’s intrmance and cry 1, 2013.
nt
in a single frarements. IFRSt fair value mer January 1, 2
nd Quarter Financ
CBC/Ra
Policies
accounting prn issued but an. The Corpored financial st
struments: D
e additional dis that the tranng after July
in October 20on and Measu
truments in thial assets anddatory effectivng on or after
s
arate Financia10 is to estabwhen an entitdetermine whecome effect
1 Interests in s by Venturers legal form asting of joint ares. IFRS 11 w
tities
n a subsidiaring users of fterest in othercash flows. IF
amework for mS 13 applies teasurement. T2013.
cial Report 2012
adio-Canada S
s (Contin
ronouncemenare not yet effration is curretatements, ex
Disclosures
isclosure on tnsferring entit1, 2011.
010, is part ofurement. IFRShe context of d liabilities. Ove date for IFJanuary 1, 20
al Statementsblish principlesty controls onhether an entitive for annua
Joint Venturers. IFRS 11 focs is currently trrangements b
will become ef
y, a joint arrafinancial stater entities and RS 12 will be
measuring faito IFRSs that This Standard
-2013
Second Quar
nued)
nts in additionfective, and dently assessinxcept as noted
the transfer ofty retains. The
f a multi-step S 9 has adoptits business mn December RS 9 and req015.
s and SIC-12 s for the presene or more othity should be
al periods beg
es and SIC-13cuses on the the case undeby requiring thffective for an
ngement, an ements to evathe effects of
ecome effectiv
ir value and rerequire or ped will become
rter Financial
to the ongoinetermined tha
ng the potentiad below.
f financial assese amendme
project to repted an approamodel and the16, 2011, the
quire certain
Consolidationentation and her entities. Tincluded in th
ginning on or a
3 Jointly rights and er IAS 31. Thhe equity metnual periods
associate or aluate the natuf those interesve for annual
equires ermit fair valuee effective for
38
Report 2012-
ng at the al
sets ents
place ach e
e
n-
This he after
e thod
an ure sts on
e
-2013
CBC/Ra
39
adio-Canada
2. S
IAS 1 Am
IAS 1 wasand only relements translationunder IFRimplemencompreheafter July
IAS 12 A
IAS 12 wameasuremfrom the mdoes not eeffective f
IAS 19 A
IAS 19 waamend theComprehecorporate These amCorporatiothe year rcomprehediscount r
IAS 28 In
IAS 28 wathe requirand joint v
Second Quar
ignifican
mendments t
s amended inrevise the waywhich may ben), and those
RS 9).The Corntation of this ensive income1, 2012.
Amendments
as amended iment of deferrmanner in whexpect these for annual rep
Amendments
as amended ie presentatioensive Incom bond yield, a
mendments aron expects thecognized in
ensive incomerate in the cur
nvestments i
as amended iements for thventures. IAS
CBC/Radio
rter Financial
nt Acco
to IAS 1 Pre
June 2011 toy other compe “recycled” telements tha
rporation has Standard to re. These ame
s to IAS 12 In
n December red tax assetsich the entity amendments
porting period
s to IAS 19 E
n June 2011 n of changes e (Loss), to re
as well as to imre effective fohe most signif
net results ine, given that trrent year.
in Associate
n 2011 and phe application S 28 is effectiv
o-Canada Secon
Report 2012
ounting P
esentation of
o retain the “orehensive inchrough profit
at will not (e.gretained the
result in minoendments will
ncome Taxe
2010 to provis and liabilitieexpects to re
s to impact its s beginning o
Employee Be
to eliminate tin the defined
equire the nemprove disclor annual perioicant impact o the amount o
the Corporatio
es and Joint V
prescribes theof the equity
ve for annual
Notend Quarter Financ
-2013
Policies
f financial sta
one or two stacome is preseand loss (e.g
g. fair value th“two statemer presentationbecome effe
es
de an exceptes should refleecover the car
financial staton or after Jan
enefits
he option to dd benefit obligt interest to bosure about thods beginningof adopting thof $92 millionon’s expected
Ventures
e accounting fmethod wheperiods begin
es to the Condencial Report 2012
s (Contin
atements
atement” apprented: requiring. cash-flow hrough other c
ent” approach n changes relctive for annu
tion to the genect the tax corrying amounttements. The nuary 1, 2012
defer the recogation and plae calculated bhe risks arising on or after Jhis Standard t, with a corre
d return on pla
for investmenn accounting nning on or af
nsed Consolidate-2013
nued)
roach at the ong separate sedging, foreig
comprehensivand expects
lating to itemsual periods be
neral principlensequences tt of the asset.amendments
2.
ognition of gaian assets on by using a higng from defineJanuary 1, 20to be a highersponding decan assets is g
ts in associatfor investmen
fter January 1
ed Financial State
option of the esubtotals for thgn currency ve income itemthe
s of other eginning on o
e in IAS 12 ththat would fol. The Corporas to IAS 12 ar
ins and lossethe Statemen
gh quality ed benefit pla13. The r net expensecrease in othegreater than th
tes and sets onts in associa, 2013.
ements
entity hose
ms
r
at the low
ation re
s, to nt of
ans.
e for er he
out ates
Notes to the
3. KeJudge
A. Key
The prepamanagemat the dateduring the
The criticafinancial sassociateintangibleand other
When accbenefit ob
The primaChanges and amouand expecIncome.
In makingconditionsassumptiocommitmeassumptioEstimatesprospectivof the chachange af
e Condensed Con
ey Sourements
Sources of
aration of thesment to make e of such finae period.
al estimates astatements afd with the Fe
es and progracontingencie
counting for dbligations and
ary assumptioto these prim
unts recognizected return on
g estimates ans where possons have beeents, events oons utilized ins are regularlyvely by includange, if the chffects both. A
nsolidated FinanCBC/Radio
rces of
Estimation
se condensedestimates and
ancial stateme
and assumptioffect the assesderal Budget mming, allow
es.
efined benefi the future pe
ons and estimmary assumpti
ed in Other Cn plan assets
nd using assuible, supplem
en applied in aor uncertaintien making thesy reviewed byding them in thhange affects ctual results c
cial Statementso-Canada Secon
Estimat
n Uncertaint
d consolidatedd assumptionents and the r
ons utilized inssment of pen2012 restruc
wance for doub
t pension plaerformance of
mates include ons and estim
Comprehensivwould also im
umptions, manmented by intea manner cones that we be
se estimates iny managemenhe Condensethat period oncould significa
nd Quarter Financ
CBC/Ra
tion Unc
ty
d financial stans that affect treported amo
n preparing thnsion plans aturing, estimabtful accounts
ns, assumptiof plan assets.
the discount mates would ive Income, asmpact the am
nagement relernal analysis nsistent with plieve will maten these condent and changed Consolidatenly; or the peantly differ fro
cial Report 2012
adio-Canada S
certainty
atements in athe reported aunts of reven
he Corporationnd employee
ated useful livs, provisions a
ons are made
rate and the empact amoun
s applicable. Dounts recogn
ies on externas required.
prior periods aerially affect tensed consoles in those esed Statementriod of the ch
om those estim
-2013
Second Quar
y and C
ccordance wamounts of asues and expe
n’s condensee-related liabilves of propertassociated w
e in estimating
expected retunts recognizeDifferences beized in Other
al informationThese estima
and there are the methodololidated financstimates are rt of Income (Lange and futumates.
rter Financial
Critical
ith IFRS requssets and liabenses recorde
ed consolidateities, accrualsy and equipmith legal claim
g the valuatio
urn on plan ased in net resuletween the acComprehens
n and observaates and no known ogy or
cial statementecognized
Loss) in the peure periods, if
40
Report 2012-
uires bilities ed
ed s
ment, ms
on of
ssets. ts ctual sive
able
s.
eriod f the
-2013
CBC/Ra
41
adio-Canada
3. KeJudge
B. Critic
The criticaCorporatioeffect on tas follows
• Tofsh
• T4 m
• Tthte
• Tfr20
• Tmas
• Tcu
• T
Determina
Second Quar
ey Sourements
cal Judgem
al judgementson’s accountithe amounts rs:
he determinaf the CBC Mohould consoli
he determinaand the dete
meet the criter
he determinahe Corporatioemporary diffe
hat the Corpoom the date o0 per cent vot
he determinameets the crite
s an investme
he determinaurtailment ga
he determina
ations of critic
CBC/Radio
rter Financial
rces of (Contin
ments
s that the Corng policies, arecognized in
ation that the Conetization Trdate this entit
ation that an armination tha
ria of a finance
ation that, as on does not exerences are s
oration exerciof the merger ting control;
ation that an aeria of an opeent property;
ation that the Cin or loss; and
ation of the co
cal judgement
o-Canada Secon
Report 2012
Estimatnued)
rporation’s maapart from thon the Corporat
Corporation bust receivablety;
arrangement ft both this leae lease;
of the reportinxpect to genescheduled to r
sed significantransaction t
arrangement trating lease a
Corporation’sd
omponents rel
ts are reasse
Notend Quarter Financ
-2013
tion Unc
anagement hase involving etion’s conden
bears the majoes through the
for satellite traase and the o
ng date, deferrate material reverse due to
nt influence ohrough to Ma
to lease a porand that the le
s current restr
lated to the C
ssed at each
es to the Condencial Report 2012
certainty
as made in thestimations, tnsed consolida
ority of the rise guarantee i
ansponders cne related to
rred taxes shotaxable incomo its specific o
ver Canadianarch 26, 2012
rtion of a buildeased portion
ructuring activ
Corporation’s p
reporting dat
nsed Consolidate-2013
y and C
he process of hat have the ated financial
sk associatedt has provide
constitutes a lea mobile prod
ould not be reme or losses ioperating stru
n Satellite Rad, despite hold
ding owned byn of the buildin
vities do not re
property and
te.
ed Financial State
Critical
applying the most significal statements a
with the colled and as suc
ease under IFduction vehic
ecognized becin the periodsucture;
dio Holdings ding less than
y the Corporang does not q
esult in a
equipment.
ements
ant are
ection h,
FRIC le
cause s
Inc.
ation ualify
Notes to the
4. Tr
(in thousands
Trade receivab
Allowance for
Other
The Corpoevidence Corporatiopast the acorrelate w
Before accustomer.and defineevery thre
Trade recperiod for has not beCorporatio
Consistenthrough aaverage cpast due,
The Corpo
e Condensed Con
rade an
of dollars)
bles
r doubtful accounts
oration recogof impairmenon’s past exp
average creditwith default o
ccepting any n. An external e credit limits ee years to de
ceivables discwhich the Co
een a significon’s credit ter
nt with others gencies. The
credit term of but not impai
oration does
nsolidated FinanCBC/Radio
d Other
nizes an allownt. Objective eerience of cot terms as we
on receivables
new customercredit scoringby customer
etermine whet
closed includeorporation hasant change inrms average 3
in the industrse agencies t30 days. As sired.
not hold any c
cial Statementso-Canada Secon
r Receiv
wance for douevidence of imllecting paym
ell as observas.
r, the Corporag agency may. Limits and sther adjustme
e amounts (ses not recognizn credit quality30 days.
ry, the Corportypically remitsuch, a signifi
collateral or o
nd Quarter Financ
CBC/Ra
vables
ubtful accounmpairment for ments, an incre
ble changes i
ation reviews y be used to ascoring attribuents are requi
ee Note 4A) thzed an alloway and the amo
ration makes t their paymeicant portion o
other credit en
cial Report 2012
adio-Canada S
Sep t em
nts for receivaa group of re
ease in the nuin national or
the credit appassess the pouted to customired.
hat are past dance for doubounts are still
most of its cont over a periof the Corpora
nhancements
-2013
Second Quar
mb er 3 0 , 2 0 12
130,824
(3,292)
16,240
14 3 ,772
ables where theceivables coumber of delalocal econom
plication submotential custommers are revie
due at the endbtful accounts l considered r
onventional adod exceedingation’s trade
s over these b
rter Financial
M arch 3 1
17
here is objectuld include th
ayed paymentmic conditions
mitted by the mer's credit quewed at least
d of the reportbecause the
recoverable. T
dvertising salg the Corporareceivables a
balances.
42
Report 2012-
1, 2 0 12
163,871
(1,979)
15,439
77,3 3 1
ive he ts
s that
uality once
ting re The
es ation’s are
-2013
CBC/Ra
43
adio-Canada
4. Tr
A. Age
(in thousands
31 - 60 days
61 - 90 days
91 - 120 days
T o t al
B. Move
(in thousands
Balance at beg
Amounts writ t
Amounts reco
Impairment los
Increase in allo
B alance at
The conce
Second Quar
rade an
of Trade Re
of dollars)
ement in Al
of dollars)
ginning of the year
ten of f during the pe
vered during the per
sses reversed
owance for doubtful
end o f t he per io
entration of cr
CBC/Radio
rter Financial
nd Other
eceivables
llowance fo
eriod as uncollect ible
riod
accounts
o d
redit risk is lim
o-Canada Secon
Report 2012
r Receiv
that are Pa
or Doubtful A
e
mited due to t
Notend Quarter Financ
-2013
vables (
ast Due but
Accounts
he fact that th
es to the Condencial Report 2012
(Continu
t not Impair
Sep t em
Sep t em
he customer b
nsed Consolidate-2013
ued)
red
mb er 3 0 , 2 0 12
15,310
13,007
30,886
59 ,2 0 3
mb er 3 0 , 2 0 12
(1 979)
357
-
371
(2 041)
( 3 2 9 2 )
base is large
ed Financial State
M arch 3 1
7
M arch 3 1
and unrelated
ements
1, 2 0 12
36,182
25,381
17,736
79 ,2 9 9
1, 2 0 12
(1 103)
190
-
695
(1 761)
( 1 9 79 )
d.
Notes to the
5. Pr
A. Prog
(in thousands
Programs com
Programs in p
Broadcast rig
B. Move
(in thousands
Opening balan
Addit ions
Programs bro
Programm
The progr(2011—$1(2011—$2in the pas
6. Pr
(in thousands
Programming
Service agreem
e Condensed Con
rogramm
gramming b
of dollars)
mpleted
rocess of product io
hts available for bro
ement in Pr
of dollars)
nce
adcast
ming includes
ramming write.6 million) an.3 million). Pr
st two years, p
repaid e
of dollars)
rights
ments
nsolidated FinanCBC/Radio
ming
y Genre
on
oadcast
rogramming
amounts for
e-offs for the td the six monrogramming wprogramming
expense
cial Statementso-Canada Secon
g
television pro
three monthsnths ended Sewrite-offs are not suitable f
es
nd Quarter Financ
CBC/Ra
ograms includ
ended Septeeptember 30, mainly due tofor telecast or
cial Report 2012
adio-Canada S
Sep t em
Sep t em
ding specialty
ember 30, 2012012 amoun
o terminated pr pilots not pro
Sep t em
-2013
Second Quar
mb er 3 0 , 2 0 12
72,964
111,498
30,105
2 14 ,56 7
mb er 3 0 , 2 0 12
166,104
424,007
(375,544)
2 14 ,56 7
services.
12 represent $t to $1.6 millioprojects, progogressing into
mb er 3 0 , 2 0 12
35,117
17,843
52 ,9 6 0
rter Financial
M arch 3 1
16
M arch 3 1
1,
(1
16
$1.1 million on
grams not teleo a series.
M arch 3 1
11
44
Report 2012-
1, 2 0 12
90,973
46,045
29,086
6 6 ,10 4
1, 2 0 12
163,658
,013,491
1,011,045)
6 6 ,10 4
ecast
1, 2 0 12
95,809
17,561
13 ,3 70
-2013
CBC/Ra
45
adio-Canada
7. Pr
A. Cost
The prope
(in thousands
Cost
Accumulated d
(in thousands o
Cost at March 31, 2012
Additions
Transfers (referAssets classifiesale
Disposals and write-offs
Cost at September 30,
Accumulated deMarch 31, 2012
Depreciation fo
Impairment cha
Reverse deprecclassified as he
Reverse deprecdisposals
Accumulated dimpairment chaSeptember 30,
Net carrying amSeptember 30,
Second Quar
roperty
t , Accumula
erty and equip
of dollars)
depreciat ion and imp
of dollars)
2
r to Note 8) ed as held for
, 2012
epreciation at 2
r the period
arges
ciation on assets eld for sale
ciation on
depreciation and arges at , 2012
mount at , 2012
CBC/Radio
rter Financial
and Eq
ated Depre
pment carryin
pairment charges
Land
181,200
38
130
(447)
(1)
180,920
-
-
(423)
-
-
(423) (
180,497
o-Canada Secon
Report 2012
quipmen
eciation and
ng amounts ar
Buildings imp
525,009
1,536
1,908
(1,800)
(1,173)
525,480
(118,928)
(19,268)
-
594
629
(136,973)
388,507
Notend Quarter Financ
-2013
nt
d Impairmen
re as follows:
Leasehold provements Technica
46,888
979
2,733
-
(205)
50,395
(21,249)
(1,496)
-
-
-
(22,745)
27,650
es to the Condencial Report 2012
nt Charges
Sep t em
al equipment
1,287,700
20,630
12,754
-
(18,862)
1,302,222
(926,896) (
(53,817)
(6,117)
-
18,384
(968,446) (
333,776
nsed Consolidate-2013
mb er 3 0 , 2 0 12
2,223,355
(1,231,397)
9 9 1,9 58
Other Uncomple
139,325
1,637
1,869
-
(4,573)
138,258
(100,061)
(6,772)
(446)
-
4,469
102,810)
35,448
ed Financial State
M arch 3 1
2
(1
1,0 4
ted capital projects
35,000 2
10,502
(19,422)
-
-
26,080 2
- (1
-
-
-
-
- (1
26,080
ements
1, 2 0 12
,215,122
1,167,134)
4 7,9 8 8
Total
,215,122
35,322
(28)
(2,247)
(24,814)
,223,355
,167,134)
(81,353)
(6,986)
594
23,482
,231,397)
991,958
Notes to the
7. P
(in thousands
Cost at M arch 31, 201
Addit ions
Transfers
Asset classif iesale
Disposals andwrite-offs
C o st at M arch 3 1, 2
Accumulated dat M arch 31, 2
Depreciat ion f
Reverse depreasset classif iesale
Reverse depredisposals
A ccumulat ed epreciat ioat M arch 3 1, 2N et carryinat M arch 3
The contrSeptembe
B. Impa
On April 4announceshutdowndistributio(2011—nil)(2011—$2Condense
An additiomobile un
e Condensed Con
roperty
of dollars)
11
ed as held for
d
2 0 12
depreciat ion 2011
for the year
eciat ion on ed as held for
eciat ion on
ed o n
2 0 12 ng amo unt 1, 2 0 12
actual commier 30, 2012 (M
airment
4, 2012, as paed the cessati of remaining
on services, th) and an addi.4 million) fored Consolidat
onal charge onit which is no
nsolidated FinanCBC/Radio
and Eq
Land B ui
179,982 50
1,195
63
-
(40)
18 1,2 0 0 52 5
- (
- (
-
-
- ( 118
18 1,2 0 0 4 0
itments for theMarch 31, 201
art of the finanon of shortwa
g analogue telhe Corporatiotional deprec
r the three andted Statemen
f $0.4 million o longer in use
cial Statementso-Canada Secon
quipmen
ld ing sLea
imp ro v
08,003
6,822
11,982
-
(1,798)
5,0 0 9 4
86,790)
32,845)
-
707
8 ,9 2 8 ) ( 2
6 ,0 8 1 2
e acquisition 12—$16.0 mill
ncial plan addave transmisslevision transn recorded an
ciation expensd six month p
nt of Income (L
was recordedeable conditio
nd Quarter Financ
CBC/Ra
nt (Cont
aseho ld vement s
Teq
44,800
1,547
542
-
(1)
4 6 ,8 8 8 1,2
(18,609)
(2,641)
-
1
2 1,2 4 9 ) ( 9
2 5,6 3 9 3
of property aion).
dressing Fedesion of RCI prmitters. As a n impairmentse of $6.4 millperiods endedLoss).
d in the seconon.
cial Report 2012
adio-Canada S
tinued)
echnical q uip ment
1,315,115
47,427
59,346
(3,724)
(130,464) (
2 8 7,70 0 13 9
(984,429) (1
(70,988)
3,490
125,031
2 6 ,8 9 6 ) ( 10 0
6 0 ,8 0 4 3 9
nd equipmen
eral Budget 20rogramming aresult of ceascharge of $6
lion (2011—$0d September 3
nd quarter of
-2013
Second Quar
Ot her
U nco m
p r
141,158
10,435
3,363
(2,308)
13,323)
9 ,3 2 5 3
101,367)
(13,915)
2,308
12,913
0 ,0 6 1)
9 ,2 6 4 3
t are $20.4 m
012, the Corpand the accelesing these tra.5 million in it
0.6 million) an30, 2012, res
2012—2013 to
rter Financial
mplet ed cap it al ro ject s
82,732 2 ,2 7
31,142 9 8
(75,296)
- ( 6
(3,578) ( 14 9
3 5,0 0 0 2 ,2 1
- ( 1,19
- ( 12 0
-
- 13 8
- ( 1,16
3 5,0 0 0 1,0 4 7
million as at
poration eration of the nsmission ants first quarternd $26.0 milliopectively, in it
o fully impair
46
Report 2012-
T ot al
71,79 0
8 ,56 8
-
6 ,0 3 2 )
9 ,2 0 4 )
15,12 2
9 1,19 5)
0 ,3 8 9 )
5,79 8
8 ,6 52
7,13 4 )
7,9 8 8
nd r on ts
a
-2013
CBC/Ra
47
adio-Canada
7. P
C. Asse
The Corpothrough a probable acommittedyear from amount a
With the inits standadispose oSeptembe
As part ofbuildings.purposes:
• ASN
• Ais
• Aex
• Inthprha
• Aof20
8. In
A. Cost
The Corposoftware f
(in thousands
Cost
Accumulated a
Second Quar
roperty
ets Classifie
oration classisale transact
and the assetd to the sale, the date of c
nd fair value l
ncreased reqrd-definition m
of it within the er 30, 2012 (M
f the Corporat As part of thi:
A building and eptember 30
November 1, 2
A building and s expected to
Another propexpected to be
n order to conhe area have roperty in Rimas a net carry
A parcel of lanf analogue te012 is $0.1 m
ntangible
t and Accum
oration’s intanfor internal us
of dollars)
amort izat ion
CBC/Radio
rter Financial
and Eq
ed as Held
fies an asset tion rather that is available fwhich shouldlassification. Aless costs to s
uirements formobile units. Anext twelve m
March 31, 201
tion’s financiais initiative, th
land located , 2012 of $0.3
2012.
land located be sold befor
rty, located ine sold in the n
solidate its opbeen relocate
mouski for salying amount o
d located in Slevision opera
million.
e Asset
mulated Am
ngible assetsse. The intang
o-Canada Secon
Report 2012
quipmen
For Sale
as held for saan through cofor immediate
d be expectedAn asset heldsell.
r high-definitioAs such, the
months. This 12—$0.2 millio
al plan, it has he following p
in Cornerbro3 million. Sale
in Sydney, Nre the end of t
n Iqaluit, Nunanext twelve mo
perations in Red into a singe and intends
of $0.4 million
Stoneham, Quations. The to
ts
mortization
comprise sofgible assets c
Notend Quarter Financ
-2013
nt (Cont
ale if its carryontinuing use.e sale in its prd to qualify ford for sale is m
on broadcastiCorporation hmobile unit haon).
developed a roperties are
ok, Newfounde and transfer
Nova Scotia, hthe Corporatio
avut, has a caonths.
Rimouski, Quele, leased pros to dispose on as at Septem
uebec, that isotal carrying a
ftware acquirearrying amou
es to the Condencial Report 2012
tinued)
ying amount w. This conditioresent conditir recognition a
measured at th
ing, the Corpohas listed thisas a net carry
strategy to reclassified as
dland, with a r of this prope
having a total on’s third qua
arrying amoun
ebec, the regoperty. The Cof it in the nexmber 30, 2012
no longer reqamount of the
ed separatelyunts are as fol
Sep t em
nsed Consolidate-2013
will be recoveron is met onlyon. Managemas a completehe lower of its
oration no lons unit for sale ying amount o
educe ownersheld for sale
total carryingerty was comp
carrying amoarter.
nt of $0.5 mill
ional broadcaorporation ha
xt twelve mon2.
quired followi property at S
y and internalllows:
mb er 3 0 , 2 0 12
153,619
(130,937)
2 2 ,6 8 2
ed Financial State
red principallyy when the sament must be ed sale withins previous car
nger utilizes oand intends t
of $0.2 million
ship in land anfor accountin
amount at pleted on
ount of $0.3 m
ion and is
asting activitieas listed its owths. This prop
ng the shutdoSeptember 30
ly developed
M arch 3 1
(
2
ements
y le is
n one rrying
one of to n at
nd ng
million,
es in wned perty
own 0,
1, 2 0 12
150,807
122,372)
2 8 ,4 3 5
Notes to the
8. In
(in thousands
Cost at M arch
Addit ions
Transfers (refe
C o st at Sep
Accumulated a
Amort izat ion f
A ccumulat e
N et carryin
(in thousands
Cost at M arch
Addit ions
Transfers
Disposals
C o st at M a
Accumulated a
Amort izat ion f
Reverse amort
A ccumulat e
N et carryin
B. Impa
There werimpairmen
e Condensed Con
ntangible
of dollars)
h 31, 2012
er to Note 7)
pt emb er 3 0 , 2 0 1
amort izat ion at M arc
for the period
ed amo rt izat io n a
g amount at Sep
of dollars)
h 31, 2011
arch 3 1, 2 0 12
amort izat ion at M arc
for the year
t izat ion on disposals
ed amo rt izat io n a
g amount at M a
airment
re no indicatont expense w
nsolidated FinanCBC/Radio
e Asset
12
ch 31, 2012
at Sep t ember 3 0
p t emb er 3 0 , 2 0 12
ch 31, 2011
s
at M arch 3 1, 2 0
rch 3 1, 2 0 12
ors of impairmwas recorded (
cial Statementso-Canada Secon
ts (Cont
0 , 2 0 12
2
12
ment during th(2011—nil).
nd Quarter Financ
CBC/Ra
tinued)
Int ernadevelo p
so f t w
138,3
2
6
13 9 ,16
(120,8
(7,4
( 12 8 ,2 6
10 ,9 0
Int ernadevelo p
so f t w
136,5
1,
2
(
13 8 ,3
(105,4
(15,4
( 12 0 ,8 2
17,50
e second qua
cial Report 2012
adio-Canada S
ally p ed are
A cq uso f t w
331 10
209
629
6 9 11,7
822) (1
441) (1
6 3 ) ( 2 ,6
0 6 9 ,0
ally p ed are
A cq uso f t w
579 2,
713 1
220 6
(181)
3 1 10 ,5
437)
476) (1
91
2 2 ) ( 1,5
0 9 9 ,0
arter of 2012—
-2013
Second Quar
ired ware
U ncomplca
pro j
,596
1,113
31
74 0 2
1,550)
1,124)
6 74 )
0 6 6 2
ired ware
U ncomplca
pro j
,209 6
1,853 2
,534 (
-
59 6 1,
(63)
1,487)
-
550 )
0 4 6 1,
—2013 and, as
rter Financial
let ed ap it al ject s
1,880 150
1,462 2
(632)
,710 153
- ( 12 2
- ( 8
- ( 13 0
,710 2 2
let ed ap it al ject s
6,399 14
2,235 5
6,754)
-
8 8 0 150
- ( 10 5
- ( 16
-
- ( 12 2
8 8 0 2 8
s such, no
48
Report 2012-
To t al
0 ,8 0 7
2 ,78 4
2 8
3 ,6 19
2 ,3 72 )
8 ,56 5)
0 ,9 3 7)
2 ,6 8 2
To t al
5,18 7
5,8 0 1
-
( 18 1)
0 ,8 0 7
5,50 0 )
6 ,9 6 3 )
9 1
2 ,3 72 )
8 ,4 3 5
-2013
CBC/Ra
49
adio-Canada
9. Su
The follow
(in thousands
CSR - Class B
Other
The CorpoSatellite Rmerger traequity me20 per cethrough bjudges thashares.
The fair va(March 31shares at
The follow
(in thousands
Revenue
Net income 1Amounts fo2Amounts foto August 31
(in thousands
Assets
Liabilit ies1Amounts at2Amounts at
There areinvestors.
Second Quar
ubsidiar
wing is the sum
of dollars)
B
oration holds Radio Holdingansaction invo
ethod, and CSnt and that it oard represenat it has signif
alue of the Co1, 2012—$53.6September 3
wing tables pr
of dollars)
or the three and sor the three and s1, 2011.
of dollars)
t September 30, t March 31, 2012
e no significan
CBC/Radio
rter Financial
ries, Sp
mmarized fina
a 14.5 per cegs Inc. (CSR) olving Sirius C
SR that closedholds the powntation, and tficant influenc
orporation’s in6 million) and30, 2012.
resent the sum
six month periodssix month periods
2012 include bal2 include balance
nt restrictions
o-Canada Secon
Report 2012
pecial P
ancial informa
Sep t ember 3 0 ,
1
Ownership int er
ent equity intethrough its in
Canada Inc. (d in June 201wer to participhrough its once over CSR
nvestment in was determi
mmarized fina
2
68
Three mo nt hs e
s ended Septems ended Septem
lances for CSR aes for CSR as at
imposed on C
Notend Quarter Financ
-2013
urpose
ation for the C
2 0 12 M arc
14.50%
-
-
rest as at :
erest and a 21nvestment in C(Sirius), an inv1. Given that
pate in the finagoing businesand applies e
CSR at Septened using the
ancial informa
0 12 1
8,252
6,117
nd ed Sept emb er
ber 30, 2012, incber 30, 2011, inc
as at August 31, February 29, 20
CSR relating
es to the Condencial Report 2012
Entities
Corporation’s
ch 3 1, 2 0 12 Sep t
14.51%
-
-
C arr
1.7 per cent vClass B Votinvestee previothe Corporat
ancial and opss relationshi
equity accoun
ember 30, 20e closing mark
ation for CSR
2 0 112
55,546
8,154
r 3 0 Six m
clude results for Cclude results for t
Sep t emb
2012. 12.
to their ability
nsed Consolidate-2013
s and As
investments:
t emb er 3 0 , 2 0 12
6,577
17
6 ,59 4
rying value as at
voting interestg Shares, ob
ously accounttion’s voting inperating policyip with CSR, t
nting to its inve
12, is $75.9 mket price of C
:
2 0 12 1
132,970
1,928
mont hs end ed Se
CSR through to Athe combined CS
b er 3 0 , 2 0 12 1
407,128
361,873
y to transfer fu
ed Financial State
ssociate
:
M arch 3 1,
7
7
6
:
t in Canadian tained as parted for under tnterest exceey decisions ofthe Corporatioestment in Cl
million CSR Class A
9
ep t emb er 3 0
August 31, 2012SR/Sirius entity t
M arch 3 1,
3
unds to their
ements
es
2 0 12
6,191
17
6 ,2 0 8
rt of a the
eds f CSR on ass B
2 0 112
98,631
14,277 . hrough
2 0 12 2
397,158
354,367
Notes to the
10. Ac
(in thousands
Trade payable
Accruals
Other
11. PeAsset
Employee
(in thousands
Accrued pens
Employee futu
Vacat ion pay
Workforce red
Salary-related
The CorpoPlan, coveof pensionlast ten yesalary to tactuarial varrangembasis. Thegoing forwreflect the
e Condensed Con
ccounts
of dollars)
es
ension ts/Liabil
e-related asse
of dollars)
ion benef it liability
ure benef its
duct ion
liabilit ies
oration maintering substannable service ears of emplothe plan, with valuations. Thents. All plane actuarial vaward under nee latest valuat
nsolidated FinanCBC/Radio
s Payab
Plans alities
ets/liabilities a
Sep t emb e
ains a contribntially all emp
and on the aoyment. Emplo
the Corporathe Corporatios are subject luation of the
ew regulatorytions, which w
cial Statementso-Canada Secon
ble and A
and Emp
are as follows
er 3 0 , 2 0 12
-
-
51,827
10,240
59,380
12 1,4 4 7
C urrent
butory definedloyees of the verage of theoyees are reqtion providingon also mainta
to an actuari CBC/Radio-C
y requirementswere performe
nd Quarter Financ
CBC/Ra
Accrued
ployee-
s:
M arch 3 1, 2
57
6
66
12 9 ,8
d benefit pensCorporation.
e best five conquired to cont the balance ains unfundedal valuation, wCanada Penss. The amouned as of Dece
cial Report 2012
adio-Canada S
d Liabili
Sep t em
Related
2 0 12 Sep t em
-
-
7,099
6,310
6,441
8 50
sion plan, the Retirement b
nsecutive yeatribute a perceof the fundingd non-contribuwhich have bsion Plan will nts included inember 31, 201
-2013
Second Quar
ities
mb er 3 0 , 2 0 12
35,827
50,824
2,991
8 9 ,6 4 2
d
b er 3 0 , 2 0 12
464,128
161,782
-
-
161
6 2 6 ,0 71
Lo ng - t e
CBC/Radio-Cbenefits are baars of pensionentage of theg, as requiredutory defined een made at be required on these financ11.
rter Financial
M arch 3 1
12
M arch 3 1
1
15
3 3 3
erm
Canada Pensased on the le
nable salary inir pensionable
d, based on benefit pensleast on a trie
on an annual cial statemen
50
Report 2012-
1, 2 0 12
54,925
65,243
4,470
4 ,6 3 8
1,2 0 12
175,813
57,223
-
-
171
3 ,2 0 7
sion ength n the e
ion ennial basis ts
-2013
CBC/Ra
51
adio-Canada
11. PAsset
The CorpoApril 1, 20employeecash awapensionabthe categodisability adisability aterm bene
During theMarch 31
The princ
A ssump t io n
A ssump t io n
Expected lo
Discount rat
A ssump t io n
Discount rat
Discount rat
Discount rat
Discount rat
Long-term rate
Health care co
Indexation of
The amouCorporatio
(in thousands
Benefit obliga
Fair value of p
D ef icit
Less:
Unamort ized uN et l iab il it yo b ligat io n
Second Quar
Pensionts/Liabil
oration maint005, July 1, 20es retiring withrd upon retireble service anory of employand workers’ and post-retirefit plan and t
e year, the Co, 2012.
ipal assumpti
ns – annual rat es
ns f or t he calcul
ng-term rate of retur
e
ns f or t he calcul
e - pension
e - employee termina
e – LTD benef its
e – post-employmen
e of compensat ion in
st trend rate
pensions in payment
unt included inon's obligatio
of dollars)
ation
plan assets
unvested past servicy ar ising f ro m d
CBC/Radio
rter Financial
n Plans lities (C
ains a non-co005 or Octobeh more than thement or imprnd on the salayees. The Corcompensatio
rement life inshe continuatio
orporation has
ons used for
s
at io n o f p ensio n
rn on plan assets
at io n o f t he b en
ation benef it
nt benefit
ncrease, excluding m
n the Condenn in respect o
ce costsef ined b enef it
o-Canada Secon
Report 2012
and Emontinue
ontributory loner 11, 2005, dhree years ofrove their penary rate at Marporation also
on, continuatiosurance. The on of benefits
s updated its
the purposes
n b enef it cost s:
nef it o b lig at io n:
merit and promotion
nsed Consolidof its defined b
F undep ensio
p la
5,623,14
5,248,00
3 75,14
3 75,14
Notend Quarter Financ
-2013
mployeeed)
ng-term benefdepending onservice with t
nsion benefitsarch 2005, Julo provides emon of benefits last actuarial
s coverage pla
measuremen
s of the actuar
dated Statemebenefit plans
ed o n an
U nf unded p ensio n
p lans
49 88,983
04 -
5 8 8 ,9 8 3
- -
5 8 8 ,9 8 3
Sep t em
es to the Condencial Report 2012
e-Relate
fit plan for cen the categorythe Corporati. The benefitsly 2005 or at r
mployee futurecoverage forvaluations fo
an were made
nt of the pens
rial valuations
Sep t em
ent of Financiis as follows:
Ot her p o st -ret irement
p lans
161,514
-
16 1,514
(268)
16 1,78 2
mb er 3 0 , 2 0 12
nsed Consolidate-2013
ed
rtain employey of employeeon can chooss are based oretirement/dee benefits sucr employees oor the non-cone as at Decem
ion valuation
s were as follo
mb er 3 0 , 2 0 12
6.00%
4.25%
3.75%
3.50%
3.75%
4.25%
2.75%
7.00% per annum unt il 2019,
4.50% thereafter
1.65%
ial Position ar
Fund ed pension
p lan
U
5,184,634
5,090,814
9 3 ,8 2 0
-
9 3 ,8 2 0
ed Financial State
ees hired befoes. Under the se to receive aon the length oeath, dependinch as long-termon long-term ntributory longmber 2009.
completed as
ows:
M arch 3 1
7.00% pun
4.50% t
rising from the
U nf und ed pension
p lans
Ot herret i
81,993
-
8 1,9 9 3 15
-
8 1,9 9 3 15
M arch 3 1
ements
ore plan, a of ng on m
g-
s of
1, 2 0 12
6.50%
5.25%
4.25%
4.00%
3.75%
4.25%
2.75%
per annum nt il 2019, hereafter
1.65%
e
r p ost -rement
p lans
156,917
-
56 ,9 17
(306)
57,2 2 3
1, 2 0 12
Notes to the
11. PAsset
Movemen
(in thousands
Opening def in
Current servic
Interest cost
Contribut ions
Actuarial losse
Benef its paid
Past service co
C losing d ef1Estimated cCanada Pen31, 2012. 2The accrue3The accrue
Movemen
(in thousands
Opening fair v
Expected retu
Actuarial gains
Contribut ions
Contribut ions
Benef its paid
C losing f ai
The Corpoduring the
e Condensed Con
Pensionts/Liabil
nts in the pres
of dollars)
ned benefit obligat io
ce cost
s f rom employees
es
ost1
f ined benef it o b
cost of changes tnsion Plan. This c
ed benefit obligated benefit obligat
nts in the fair v
of dollars)
value of plan assets
urn on plan assets
s
s f rom employees
s f rom the Corporat io
r value o f p lan a
oration expece current fisca
nsolidated FinanCBC/Radio
n Plans lities (C
sent value of t
n
b lig at io n
to certain minimucost is a one-tim
ions for the fundeions for the funde
value of the p
on
asset s
cts to make a al year.
cial Statementso-Canada Secon
and Emontinue
the defined be
um benefit require charge to the C
ed plan and for ted plan and for t
plan assets we
contribution o
nd Quarter Financ
CBC/Ra
mployeeed)
enefit obligati
Pensp la
5,266,6
50,7
110,8
21,2
390,3
(127,
5,712 ,13
S
rements in the PeConsolidated Sta
he unfunded plahe unfunded pla
ere as follows
Pensp la
5,090,8
150,5
84,8
21,2
28,3
(127,
5,2 4 8 ,0 0
S
of $59.7 millio
cial Report 2012
adio-Canada S
e-Relate
on were as fo
ion ans
Ot her p oemploym
p
627 156
779 3
847 3
210
386 4
,717) (6
-
3 2 2 16 1,
Sep t emb er 3 0 , 2
ension Benefits Satement of Incom
ns are $5,623,14ns are $5,184,63
s:
ion ans
Ot her p oemploym
p
814
589
808
210
300 6,
,717) (6,
0 4 -
Sep t emb er 3 0 , 2
on to the defin
-2013
Second Quar
ed
ollows:
ost - ment lans
Penp
6,917 4,482
3,525 7
3,012 23
- 4
4,501 667
6,441) (244
- 15
514 5,2 6 6 ,
2 0 12
Standards Act afme (Loss) in the f
49 and $88,983 r34 and $81,993 r
ost - ment lans
Penp
4,56
29
379
4
,442 5
,442) (244
- 5,0 9 0
2 0 12
ned benefit pe
rter Financial
nsion p lans
Ot her emplo
2,903 14
72,541
1,924
41,186
7,400
4,327) (
5,000
6 2 7 3 156
M arch 3 1,
ffecting the CBC/fiscal year ended
respectively respectively.
nsion p lans
Ot her emplo
3,210
1,938
9,386
41,186
59,421
4,327) (
,8 14
M arch 3 1,
ension plans
52
Report 2012-
p o st - yment p lans
41,234
6,761
7,120
-
15,056
13,254)
-
6 ,9 17
2 0 12
/Radio-
d March
p o st - yment p lans
-
-
-
-
13,254
13,254)
-
2 0 12
-2013
CBC/Ra
53
adio-Canada
11. PAsset
Amounts the table b
(in thousands
Current servic
Interest on ob
Expected retu
Vested past s
Expense recog
Plus:
Actuarial losselossT o t al amouco mp rehens
The cumu$374.3 m
The total eConsolida
(in thousands
Television, rad
Specialty serv
Transmission,
Corporate ma
T o t al
The overaof plan astrends andactual retu$235.4 m
Second Quar
Pensionts/Liabil
recognized inbelow.
of dollars)
ce cost
ligat ion
urn on plan assets
service cost
gnized in net results
es recognized in oth
nt s reco g nized sive lo ss
ulative actuariillion as of Se
expense recoated Statemen
of dollars)
dio and new media se
vices
distribut ion and col
anagement
all expected rassets held. Thd analysts’ fourn on plan aillion or 4.66 p
CBC/Radio
rter Financial
n Plans lities (C
n comprehens
her comprehensive
in
ial losses recoeptember 30,
ognized in netnt of Income (
ervices costs
lect ion
ate of return ihe Corporationrecast of the ssets for the tper cent, resp
o-Canada Secon
Report 2012
and Emontinue
sive income in
2
56
(7
8
32
3 3 7,
Three mo nt hs e
ognized in Ot2012 (March
t results has b(Loss) as follo
8 ,
Three mo nt hs e
s a weighted n’s assessmemarket returnthree and six pectively (201
Notend Quarter Financ
-2013
mployeeed)
n respect to th
2 0 12
27,152
6,930
5,295)
(19)
8,768
9,077
,8 4 5
nd ed Sep t ember
ther Compreh31, 2012 loss
been recordedows:
2 0 12
7,539
915
235
79
,76 8
nd ed Sep t ember
average of thent of the expens for the assemonths perio1—3.50 per c
es to the Condencial Report 2012
e-Relate
hese defined
2 0 11
18,362
59,685
(72,984)
(19)
5,044
195,112
2 0 0 ,156
r 3 0 Six m
hensive Incomses — $64.3 m
d in the Corpo
2 0 11
4,028
848
126
42
5,0 4 4
r 3 0 Six m
he expected rected returnset over the life
ods was $143ent and 6.58
nsed Consolidate-2013
ed
benefit plans
2 0 12
54,304
113,860
(150,589)
(38)
17,537
310,079
3 2 7,6 16
mont hs ended Se
me (Loss) repmillion).
oration’s Con
2 0 12
15,251
1,651
476
159
17,53 7
mont hs ended Se
returns of the is based on e of the relate
3.0 million or 2per cent, resp
ed Financial State
s are indicated
3
1
) (14
)
2
13
158
ep t emb er 3 0
resent
ndensed
2
2 5
ep t emb er 3 0
various categhistorical retued obligations2.80 per cent pectively).
ements
d in
2 0 11
36,724
119,370
45,968)
14,962
25,088
33,816
8 ,9 0 4
2 0 11
22,431
1,722
701
234
5,0 8 8
gories urn s. The and
Notes to the
11. PAsset
The asset
(in thousands
Fixed income
Canadian equi
Global equit ie
Strategic1
1Strategic in
For the thbenefits in(2011—$2
12. Pr
(in thousands
Balance at M a
Addit ional pro
Provisions ut iRemeasuremewithout cost
B alance at
Addit ional pro
Increases due
Provisions ut iRemeasuremewithout costB alance at 2 0 12
e Condensed Con
Pensionts/Liabil
ts of the plan
of dollars)
t ies
es
vestments includ
ree and six mncurred by the24.5 million a
rovision
of dollars)
arch 31, 2012
ovisions recognized
lized nt or sett lement
June 3 0 , 2 0 12
ovisions recognized
to accret ion
lized nt or sett lement
Sep t emb er 3 0 ,
nsolidated FinanCBC/Radio
n Plans lities (C
have been in
de real estate, pr
month periodse Corporationand $491.7 m
ns
C laims and pro ceed
3
(2
4 0
4
(
(2
3 8 ,
cial Statementso-Canada Secon
and Emontinue
nvested as fol
rivate placement
s ended Septen was $217.3 illion, respect
legal d ing s Envir
8,762
5,268
2,649)
(702)
,6 79
4,969
-
(4,917)
2,687)
,0 4 4
nd Quarter Financ
CBC/Ra
mployeeed)
lows:
s, hedge funds a
ember 30, 201million and $tively).
ronment al
300
-
-
-
3 0 0
-
-
(40)
-
2 6 0
Sep t em
cial Report 2012
adio-Canada S
e-Relate
Sep t em
and infrastructure
12, the total e479.5 million,
W o rkf o rce red uct io n D
-
13,936
(11,751)
-
2 ,18 5
22
-
(1,170)
-
1,0 3 7
mb er 3 0 , 2 0 12
R est ruct ur in
-2013
Second Quar
ed
mb er 3 0 , 2 0 12
53%
11%
20%
16%
10 0 %
e funds.
expense relate, respectively
D eco mmissio nin
5,388
5,3 8 8
1,270
39
(308
6 ,3 8 9
ng co st s
rter Financial
Sep t emb er 3 0
ed to employey
g
- 3
8 2
- (1
-
8 4 8
0
9
8) (
- (
9 4 5
54
Report 2012-
0 , 2 0 11
55%
13%
17%
15%
10 0 %
ee
T ot al
9,062
24,592
14,400)
(702)
8 ,552
6,261
39
(6,435)
(2,687)
5,73 0
-2013
CBC/Ra
55
adio-Canada
12. P
(in thousands
Balance, begin
Addit ional pro
Provisions ut il
Remeasuremewithout cost
B alance, en
A. Rest
Restructuresponse recognizeacceleraticeasing sincrementcharges, a
For the trestructurcapital funThe majoexpenses
B. Claim
Various cthese claiexpenditutax issues
Litigation Claims thaconsiderefinancial s(March 31estimable
The Corpo
Second Quar
Provisio
of dollars)
nning of year
ovisions recognized
lized
nt or sett lement
nd o f year
tructuring co
ring costs incto the annou
ed to date ng the shutdo
shortwave tratal deferred cas presented
three and sring costs wasnding recognority of theses on the Corpo
ms and lega
laims and legms demand l
ures. The Cors, copyright ta
is subject to mat are uncerta
ed to be a constatements. A1, 2012—$38.8e, the Corpora
oration has n
CBC/Radio
rter Financial
ons (Co
C laims and p roceed
3
13
(
(
3 8
osts
curred duringuncement of include workown of analog
ansmission foapital fundingin Note 14.
ix months ps $8.0 millionized in incom
e costs have oration’s State
al proceedi
gal proceedingarge monetarporation’s pro
ariffs, grievanc
many uncertaain in terms ontingency andAt September 8 million) in reation expects
ot identified a
o-Canada Secon
Report 2012
ntinued
legal d ing s Envir
5,272
3,045
3,241)
6,314)
,76 2
g the first sixFederal Budgkforce reducgue television
or the Corporg has been re
periods enden and $53.4 mme was $6.4
been recordement of Inco
ngs
gs have beenry damages oovisions consces and other
ainties and theof the outcomed are not reco
30, 2012, theespect of legathem to be re
any onerous c
Notend Quarter Financ
-2013
d)
o nment al
300
-
-
-
3 0 0
M ar
x months of thget 2012, as tions where
n transmittersation’s RCI s
ecognized in r
d Septembemillion, respecmillion and $
ded as part oome (Loss).
n asserted or ior other form oist mainly of rr legal claims
e outcome of e or potential rded in the Co
e Corporation al claims. All mesolved within
contracts.
es to the Condencial Report 2012
W orkf o rce red uct io n D
-
-
-
-
-
ch 3 1, 2 0 12
R est ruct urin
he year havewell as other
demonstrab and associat
service as disrelation to the
r 30, 2012, ctively (2011—$32.1 million, of Transmiss
instituted agaof relief, and creal estate va.
individual maoutflow or thaorporation’s chad provision
matters are cln 12 months.
nsed Consolidate-2013
D ecommissio nin
-
ng co st s
e arisen fromr financial prebly committeted decommisscussed in Nse depreciatio
the total ex—nil and nil), arespectively
sion, distribut
ainst the Corpcould result in
aluation and re
atters is not aat are not mecondensed cons amountinglassified as cu
ed Financial State
g T
- 3
- 1
- (
- (
- 3 9
m the Corporaessures. Exped and estimssioning work
Note 7. In addon and impai
xpense relateand the assoc(2011—nil an
tion and colle
poration. Somn significant elated munici
lways predictasurable are
onsolidated g to $38.0 millurrent as, whe
ements
To t al
35,572
13,045
(3,241)
(6,314)
,0 6 2
ation’s enses
mable, k, and dition, rment
ed to ciated d nil). ection
e of
pal
table.
lion ere
Notes to the
12. P
C. Envir
At Septemmatters (MBiphenylsDévelopprequired afrom the sat these twministry aproperty, w$0.04 mill
D. Cont
Various cthese claiexpenditualways prone or moliabilities.
e Condensed Con
Provisio
ronmental l
mber 30, 2012March 31, 201s (PCB) conceement durabl
at the Corporasite’s former two sites are epprovals andwith spendingion.
tingencies
laims and legms demand l
ures. Litigationedictable. Co
ore future eve
nsolidated FinanCBC/Radio
ons (Co
liabilities
2, the Corpora12—$0.3 millioentrations excle, de l'Enviroation’s Mont Lransmission testimated at $ other environg for the three
gal proceedingarge monetarns are subjecontingent liabients occur or f
cial Statementso-Canada Secon
ntinued
ation had provon). One formceeding permonnement et dLogan properttower and ass$0.2 million, anmental reviee and six mon
gs have beenry damages ot to many unclities are potefail to occur. N
nd Quarter Financ
CBC/Ra
d)
visions totallinmer AM transmmitted levels dedes Parcs (MDty to clean-upsociated buildand $0.1 millioews. The Corpnth periods en
n asserted or ior other form ocertainties anential liabilitiesNo amounts h
cial Report 2012
adio-Canada S
ng $0.3 milliomission site inetermined by DDEP). Additp oil contaminding. Costs ason, respectiveporation has bnding Septem
instituted agaof relief and cd the outcoms, which may have been rec
-2013
Second Quar
on for two envn Rimouski ha
the Ministèretionally, remenants found inssociated withely. Both mattbegun work o
mber 30, 2012
ainst the Corpcould result ine of individuabecome actu
corded in rela
rter Financial
vironmental as Polychlorine du diation work i
n ground samph remediationters are subje
on the Mont Lo totalling
poration. Somn significant al matters is nual liabilities wation to contin
56
Report 2012-
nated
is ples
n work ect to ogan
e of
not when ngent
-2013
CBC/Ra
57
adio-Canada
13. R
The Corpo
(in thousands
Advert ising
Building, towe
Product ion rev
Digital progra
Retransmissio
Program spon
Other services
T o t al R end
T o t al Sp ec
T o t al F inan
Contribut ion fImprovement F
Contra revenu
(Loss) gain on
Net (loss) gaiinstruments
T o t al R eve
14. G
Parliamenare as foll
(in thousands
Operat ing fund
Capital fundin
Working capit
Governmethe conde
ParliamenStatemengenerated
Second Quar
evenue
oration recog
of dollars)
er, facility and servic
venue
amming
on rights
nsorship
s
ering o f service
ialt y Services
ncing inco me
f rom the Local ProgrFund (LPIF)
ues other than advert
n foreign exchange ra
n from fair value of f
nue
overnm
ntary approprlows:
of dollars)
ding
ng
tal funding
ent funding aensed consoli
ntary approprt of Income (L
d revenue.
CBC/Radio
rter Financial
e
nized revenu
ce rentals
s
ramming
ising
ates
f inancial
ment Fun
iations approv
pproved and dated financia
iations for opeLoss) based o
o-Canada Secon
Report 2012
e from the fol
50
10
4
71
4 1,
2
1
12 6 ,
Three mo nt hs e
nding
ved and the a
200
23
2 2 4 ,
Three mo nt hs e
received by tal statements
erating expenon the net diff
Notend Quarter Financ
-2013
llowing source
2 0 12
0,384
0,049
4,700
1,990
827
3,136
295
,3 8 1
2 6 3
,153
11,764
889
(55)
(425)
,9 70
nd ed Sep t ember
amounts rece
2 0 12
0,000
3,999
1,000
9 9 9
nd ed Sep t ember
he Corporatios.
nditures are reference betwe
es to the Condencial Report 2012
es:
2 0 11
50,704
10,356
3,438
1,280
2,873
2,082
530
71,2 6 3
3 9 ,6 2 1
2 ,3 2 7
12,877
440
89
1,459
12 8 ,0 76
r 3 0 Six m
ived by the C
2 0 11
239,001
25,000
999
2 6 5,0 0 0
r 3 0 Six m
on during the
ecognized in een quarterly
nsed Consolidate-2013
2 0 12
156,493
19,764
8,114
4,898
1,577
3,977
921
19 5,74 4
8 5,18 7
4 ,50 0
22,366
1,819
67
(8)
3 0 9 ,6 75
mont hs ended Se
Corporation du
2 0 12
478,432
49,568
2,000
53 0 ,0 0 0
mont hs ended Se
period is reco
the Condensbudgeted ex
ed Financial State
16
19 7
8 1
4
2
)
3 0 8
ep t emb er 3 0
uring the perio
50
5
555
ep t emb er 3 0
orded as follo
ed Consolidaxpenses and s
ements
2 0 11
61,442
19,241
6,636
2,277
3,875
3,311
664
7,4 4 6
1,54 2
4 ,6 55
22,320
904
(220)
1,574
8 ,2 2 1
od
2 0 11
02,433
50,568
1,999
5,0 0 0
ows in
ated self-
Notes to the
14 Go
Quarterly beginningexpenditu
(in thousands
Operat ing fund
Less: ParliameConsolidated
D ef erred o
Capital FuStatementhe same lease.
(in thousands
Balance, begin
Government fu
Amort izat ion o
B alance, en
e Condensed Con
overnm
budgets are g of each yearures and self-g
of dollars)
ding received during
entary appropriat ion Statement of Incom
p erat ing vot e d r
unding receivt of Financial periods as th
of dollars)
nning of year
unding for capital ex
of deferred capital f
nd o f p erio d
nsolidated FinanCBC/Radio
ent Fun
established frr and reflect egenerated rev
g period
for operat ing expene (Loss) during perio
rawd o wn
ed is recordePosition. Cap
he related pro
xpenditures
funding
cial Statementso-Canada Secon
nding (C
rom the annuexpected apprvenue.
nditures recognized od
ed as Deferredpital Funding perty, equipm
nd Quarter Financ
CBC/Ra
Continue
al budget appropriation fun
in the Condensed
d Capital Funis amortized
ment, intangib
cial Report 2012
adio-Canada S
ed)
proved by theding for the y
Sep t em
ding in the Coand recogniz
ble assets and
Sep t em
-2013
Second Quar
e Board of Direyear and seas
mb er 3 0 , 2 0 12
478,432
(478,432)
-
ondensed Cozed on the samd equipment u
mb er 3 0 , 2 0 12
574,027
49,568
(91,993)
53 1,6 0 2
rter Financial
ectors at the sonal impacts
M arch 3 1
1,0
(1,0
onsolidated me basis andunder capital
M arch 3 1
6
(
57
58
Report 2012-
of
1, 2 0 12
028,047
028,047)
-
d over
1, 2 0 12
602,025
102,272
130,270)
74 ,0 2 7
-2013
CBC/Ra
59
adio-Canada
15. Se
Excludingcome frombeing the varies accbased revthe Corpo
Operatingschedule.
16. M
(in thousand
C hang es in
Trade and o
Programmin
M erchandis
Prepaid exp
Promissory
Financial liab
Accounts pa
Provisions
Deferred rev
Pension plan
Second Quar
easona
g government m advertising lowest mainly
cording to mavenue is moreoration’s reven
g expenses te
Movemen
ds of dollars)
W o rking C ap it a
ther receivables
ng
ing inventory
enses
notes receivable
bility related to the s
ayable and accrued l
venue
ns and employee-rela
CBC/Radio
rter Financial
lity
appropriationrevenue that y due to the s
arket and genee stable on a qnue.
end also to fol
nts in W
al are co mp rised
sale of receivables
iabilit ies
ated liabilit ies
o-Canada Secon
Report 2012
ns, approximatend to follow
summer seasoeral economicquarter-by-qu
low a season
Working
d o f :
(
18
T hree mo nt hs
Notend Quarter Financ
-2013
ately 55 per cw seasonal paon attracting fc conditions a
uarter basis a
nal pattern, as
Capital
2 0 12
43,666
34,644)
(116)
4,523
(2)
-
13,676
(677)
(9)
(7,815)
8 ,6 0 2
end ed Sep t emb
es to the Condencial Report 2012
cent of the Coatterns, with tfewer viewersand the progrand represents
s they are influ
l
2 0 11
50,428
(22,869)
(45)
6,228
(1)
70
10,834
7,406
(1,068)
(14,555)
3 6 ,4 2 8
er 3 0 Six
nsed Consolidate-2013
rporation’s sohe second qus. Advertisingamming sches approximate
uenced by the
2 0 1
33,65
(48,46
(10
60,41
(
(35,49
6,62
1,44
(9,50
8 ,558
x mo nt hs ended
ed Financial State
ource of fundsuarter typicallyg revenue alsoedule. Subscrely 20 per cen
e programmin
12
57
63)
08)
10
(6)
-
96)
28
43
07)
8
Sep t emb er 3 0
ements
s y o riber-nt of
ng
2 0 11
24,100
(54,104)
115
80,225
(4)
140
(31,852)
(671)
(694)
(17,069)
18 6
Notes to the
17. R
The Corptrade termrecorded A. Tran
(in thousands
Associate
(in thousands
Other related e
(in thousands
Corporate Pe
The follow
(in thousands
Associate
The amouthe curren
B. Othe
During themerger bewell as to dilution ga
e Condensed Con
elated P
oration entersms applicableat fair value b
sactions wi
of dollars)
of dollars)
entit ies
of dollars)
nsion Plan
wing balances
of dollars)
unts outstandnt or prior per
er Transacti
e second quaetween CSR areflect previo
ain by $13.5 m
nsolidated FinanCBC/Radio
Parties
s into transace to all indiviby the Corpor
ith Related
s were outstan
Sep t emb e
A mo unt s o w
ing are unseciods for bad o
ion with Ass
arter of last yeand Sirius in o
ously unrecogmillion.
cial Statementso-Canada Secon
ctions with relduals and en
ration. The fol
Parties Ex
Three mo nt hs e
Three mo nt hs e
14
14 ,
Three mo nt hs e
nding at the e
er 3 0 , 2 0 12
347
3 4 7
wed b y relat ed p
cured and willor doubtful de
sociate
ear, the Corpoorder to reflec
gnized losses
nd Quarter Financ
CBC/Ra
lated parties nterprises anlowing transa
cluding Go
2 0 12
820
8 2 0
nd ed Sep t ember
2 0 12
-
-
nd ed Sep t ember
2 0 12
4,509
,50 9
nd ed Sep t ember
end of the per
M arch 3 1, 2
4
ar t ies
l be settled inebts in respec
oration adjustect the requirein Sirius. This
cial Report 2012
adio-Canada S
in the normad at market
actions were c
vernment-R
2 0 11
653
6 53
R end ering o f se
r 3 0 Six m
2 0 11
-
-
r 3 0 Six m
R eceip t o f ser
2 0 11
14,432
14 ,4 3 2
r 3 0 Six m
Pensio n cont r ib
riod:
2 0 12 Sep t em
446
4 4 6
A mount s o
cash. No expct of the amou
ed the dilutionments of reves change had
-2013
Second Quar
l course of buprices. Thescarried out wi
Related Ent
2 0 12
1,857
1,8 57
ervices
mont hs ended Se
2 0 12
23
2 3
mont hs ended Se
vices
2 0 12
28,300
2 8 ,3 0 0
mont hs ended Se
ut io ns
b er 3 0 , 2 0 12
-
-
o wed t o relat ed
pense has beunts owed by
n gain recorderse-takeoverd the effect of
rter Financial
usiness, on ne transactionth related par
tities
1
ep t emb er 3 0
ep t emb er 3 0
2
2 6
ep t emb er 3 0
M arch 3 1,
part ies
een recognizerelated partie
ed as part of r accounting, lowering the
60
Report 2012-
ormal ns are rties:
2 0 11
1,408
1,4 0 8
2 0 11
-
-
2 0 11
26,921
6 ,9 2 1
2 0 12
-
-
ed in es.
the as
-2013
CBC/Ra
61
adio-Canada
17. R
C. Tran
CBC/Radby entitiesagencies,The Corpoand purch
These tracomparabprocuremservices w
For the thtransactio(2011—$0six monthwith other(2011—$0no individ
Second Quar
Related
sactions wi
io-Canada is s directly or in affiliations anoration has tr
hases of good
nsactions areble to those went policies, p
which are inde
ree months eons with other.4 million) ans ended Sept
r government-.9 million) anually significa
CBC/Radio
rter Financial
d Parties
ith Governm
a federal Crondirectly contrnd other orgaransactions wds and render
e conducted inwith other entitpricing strategependent of w
ended Septemr government-d $0.2 milliontember 30, 20-related entitid $0.2 million
ant transactio
o-Canada Secon
Report 2012
s (Conti
ment-Relate
own Corporatirolled by the f
anizations (cowith other govering and recei
n the ordinaryties that are ngy and approvwhether the co
mber 30, 2012-related entitie
n of its purcha012, the aggrees amounted
n of its purchans during the
Notend Quarter Financ
-2013
inued)
ed Entities
ion that operafederal governllectively refeernment-relatving of servic
y course of thnot governmeval process foounterparties
2, the aggregaes amounted
ase of goods aegate amoun to $0.6 millio
ase of goods a six months e
es to the Condencial Report 2012
ates in an econment throug
erred to as “goted entities inces.
e Corporationnt-related. Thor purchases s are governm
ate amount ofto $0.5 millio
and services t of the Corpo
on of its rendeand services ended Septem
nsed Consolidate-2013
onomic envirogh its governmovernment-relcluding but no
n’s activities ohe Corporatioand sales of
ment-related e
f the Corporaon of its rende(2011—$0.06 oration’s signering of servic(2011—$0.4 m
mber 30, 2012
ed Financial State
onment dominment authoritielated entities”ot limited to s
on terms n has establisproducts and
entities or not.
tion’s significaering of servic
million). For tificant transac
ces million).There 2 (2011—none
ements
nated es, ”).
sales
shed d .
ant ces the ctions
were e).
Notes to the
18. Fi
The fair vareceivableliabilities, finance lecarrying v
The carryfollowing t
(in thousands
F inancial in
Derivat ive f inaDerivat ive f ina
Derivat ive f ina
F inancial in
Promissory noNet investmen(long-term)
Bonds payablObligat ions un(long-term)
Notes payable1Method refefair values o
• Le
• Le
• Le
(a) The fa
(b) The es
(c) The facash flows
(d) The faexpected character
e Condensed Con
inancial
alues of cashe, the short-tethe short-term
ease, the shorvalue due to th
ing values antable:
of dollars)
nst rument s meas
ancial asset instrumeancial asset instrume
ancial liability instrum
nst rument s meas
otes receivable (longnt in f inance lease
e (long-term)nder f inance lease
e (long-term)
ers to the hierarcof assets and liab
evel 1 – quote
evel 2 – direct
evel 3 – inputs
air value is bas
stimated fair v
ir values relats and discoun
air values relafuture cash flistics.
nsolidated FinanCBC/Radio
l Instrum
h, trade and oterm portion ofm portion of thrt-term portionhe short-term
nd fair values
ured at f air valu
ntsnts - stock opt ions
ments
ured at amort ize
g-term)
chy levels describbilities:
ed prices in ac
tly observable
s that are not
sed on quote
value is deter
ted to the varnted using rat
ted to the Colows and were
cial Statementso-Canada Secon
ments
ther receivabf the net inveshe bonds payn of the notes
m nature of the
of the Corpor
C arryinvalue
ue:
9 7
7
ed co st :
48,77
52,77
282,87
48,91
116,00
Sept e
bed below. Each
ctive markets
e market inpu
based on ob
d forward ma
rmined using a
rious amountstes that reflec
rporation’s vae discounted
nd Quarter Financ
CBC/Ra
les, the shortstment in finayable, the shos payable andese instrumen
ration’s remai
ng es F air values
96 96 78 78
70 70
79 58,504
70 64,789
77 394,084
16 55,754
02 136,075
emb er 3 0 , 2 0 12
level is based o
for identical a
uts other than
servable mar
arket prices at
an option pric
s receivable wct the credit w
arious financiausing Govern
cial Report 2012
adio-Canada S
-term portion nce lease, ac
ort-term portio the option lia
nts.
ining financia
C arryingvalues
80 53
11
49,903
54,077
288,533
54,206
118,885
M
on the transparen
assets or liab
Level 1 input
rket data (uno
t the end of th
cing model.
were determinworthiness of t
al liabilities wnment bond r
-2013
Second Quar
of the promisccounts payabon of the obligability approxi
l instruments
g s F air values
0 80 3 53
1 11
3 58,764
7 64,999
3 396,127
6 58,955
5 132,835
M arch 3 1, 2 0 12
ncy of the inputs
bilities instrum
ts
observable inp
he reporting p
ned using the the various co
were determineates with sim
rter Financial
ssory notes ble and accru
gations under imate their
are listed in t
M et ho d 1
Level 1Level 2
Level 1
used to measure
ments
puts)
eriod.
expected futounterparties.
ed using the ilar terms and
62
Report 2012-
ued
the
N o t e
(a)(b)
(a)
(c)
(c)
(d)
(d)
(d)
e the
ure
d
-2013
CBC/Ra
63
adio-Canada
19. C
A. Prog
The Corpopurchase ended SeSeptembenext 15 ye
B. The
The Corpowhich is eis for a teragreemen
Second Quar
ommitm
gram-related
oration entereagreements.
eptember 30, 2er 30, 2012, thears.
Corporation
oration receivexpected to corm of 49 yearnt amount to $
CBC/Radio
rter Financial
ments
d, Operatin
ed into commManagemen
2012, will reshe Corporatio
n as a Less
ved final apprommence in Ms and three m$344.6 million
o-Canada Secon
Report 2012
g Leases a
mitments by rent estimates thult in future e
on’s total com
sor – Operat
oval to lease March 2013 fomonths less a n.
Notend Quarter Financ
-2013
and Other
enewing purchhat these newexpenditures ommitments am
ting Leases
out a portion ollowing the cday. Total un
es to the Condencial Report 2012
hase agreemew commitmentof approximat
mounted to $92
s
of the Torontcompletion of ndiscounted r
nsed Consolidate-2013
ents and entets, for the six tely $223.4 m25.6 million a
to Broadcast certain buildient payments
ed Financial State
ering into newmonth period
million. As of and will span t
Centre. The ling improvems under the
ements
w d
the
ease, ments,