Transactions We have entered into business transactions with companies whose partners or senior officers are directors of Rogers, including the chairman and chief executive officer of a firm that is paid commissions for insurance coverage, the senior partner and chairman of a law firm that provides legal services, and the chairman of a company that provides printing services. We record these transactions at the amount agreed to by the related parties. The transactions are reviewed by the Audit Committee of our Board of Directors. The amounts owing are unsecured, interest-free and due for payment in cash within one month from the date of the transaction. There are no significant outstanding balances with these related parties at December 31, 2013. We had the following guarantees at December 31, 2013 and 2012 as part of our normal course of business: As part of transactions involving business dispositions, sales of assets or other business combinations, we may be required to pay counterparties for costs and losses incurred as a result of breaches of representations and warranties, intellectual property right infringement, loss or damages to property, environmental liabilities, changes in laws and regulations (including tax legislation), litigation against the counterparties, contingent liabilities of a disposed business or reassessments of previous tax filings of the corporation that carries on the business. As part of transactions involving sales of services, we may be required to make payments to counterparties as a result of breaches of representations and warranties, changes in laws and regulations (including tax legislation) or litigation against the counterparties. Subsidiaries, Joint Arrangements and Associates We have the following significant subsidiaries: We have 100% ownership interest in all of these subsidiaries. Our subsidiaries are incorporated in Canada and have the same reporting period for annual financial statements reporting. When necessary, adjustments are made to conform the accounting policies with those of Rogers. There are no significant restrictions on the ability of subsidiaries, joint arrangements and associates to transfer funds to Rogers as cash dividends or to repay loans or advances. As part of transactions involving purchases and development of assets, we may be required to pay counterparties for costs and losses incurred as a result of breaches of representations and warranties, loss or damages to property, changes in laws and regulations (including tax legislation) or litigation against the counterparties. We indemnify our directors, officers and employees against claims reasonably incurred and resulting from the performance of their services to Rogers. We have liability insurance for our directors and officers and those of our subsidiaries. We carried out the following business transactions with our joint arrangements and associates. Transactions between us and our subsidiaries have been eliminated on consolidation and are not disclosed in this note. We are unable to make a reasonable estimate of the maximum potential amount we would be required to pay to counterparties. The amount also depends on the outcome of future events and conditions, which cannot be predicted. No amount has been accrued in the consolidated statements of financial position relating to these types of indemnifications or guarantees at December 31, 2013 or 2012. Historically, we have not made any significant payments under these indemnifications or guarantees. Sales to and purchases from our joint arrangements and associates are made at terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at year-end are unsecured and interest-free, and settled in cash. The outstanding balances with these related parties relating to similar business transactions as at December 31, 2013 was $14 million and included in accounts payable and accrued liabilities (December 31, 2012 – $1 million payable). In 2012, we acquired certain network assets and 2500 MHz spectrum from Inukshuk, a 50% owned joint venture. As a result, we recorded a gain of $233 million in other income, as the portion of the excess of fair value over carrying value related to the other non-related venturer’s 50% interest in the spectrum licences (see note 14). 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 123 Transaction value 2013 2012 Revenues $ 3 Purchases 83 38 Transaction value Balance outstanding, December 31, 2013 2012 2013 2012 Printing, legal services and commission paid on premiums for insurance coverage $43 $43 $2 $1 S ales of S ervices Purchases and Development of Assets Indemnifications GLYPH<129> Rogers Communications Partnership GLYPH<129> Rogers Media Inc. Business S ale and Business Combination Agreements NOTE 26: GUARANTEES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS