NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2013 Carrying amount Contractual cash flows Less than 1 year 1to3 years 4to5 years More than 5 years Short-term borrowings $ 650 1 $ 650 1 $ 650 1 $ – $ – $ – Accounts payable and accrued liabilities 2,344 2,344 2,344 – – – Long-term debt 13,343 13,436 1,170 1,883 1,989 8,394 Other long-term financial liabilities 38 38 – 14 18 6 Expenditure Derivative instruments: Cash outflow (Canadian dollar) – 923 923 – – – Cash inflow (Canadian dollar equivalent of US dollar) – (957) (957) – – – Equity Derivative instruments – 13 13 – – – Debt Derivative instruments: Cash outflow (Canadian dollar) – 6,665 1,183 905 1,435 3,142 Cash inflow (Canadian dollar equivalent of US dollar) – (6,786) 2 (1,170) 2 (883) 2 (1,489) 2 (3,244) 2 Net carrying amount of Derivatives (asset) (75) $ 16,300 $ 16,326 $ 4,156 $ 1,919 $ 1,953 $ 8,298 1 The terms of our accounts receivable securitization program are committed until it expires on December 31, 2015. 2 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for Debt Derivatives. 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 113 The tables below sets out the undiscounted contractual maturities of our financial liabilities and the receivable components of our derivatives at December 31, 2013 and 2012. Our credit risk is primarily attributable to our accounts receivable. Our broad customer base limits the concentration of this risk. Our accounts receivable in the consolidated statements of financial position are net of allowances for doubtful accounts, which management estimates based on prior experience and an assessment of the current economic environment. Management uses estimates to determine the allowance for doubtful accounts, taking into account factors such as our experience in collections and write-offs, the number of days the counterparty is past due and the status of the account. We believe that our allowance for doubtful accounts sufficiently reflects the related credit risk associated with our accounts receivable. Liquidity risk is the risk that we will not be able to meet our financial obligations as they fall due. We manage liquidity risk by managing our commitments and maturities, capital structure and financial leverage, as outlined in note 19. We also manage liquidity risk by continually monitoring actual and projected cash flows to ensure that we will have sufficient liquidity to meet our liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. Credit risk related to our Debt Derivatives, Expenditure Derivatives and Equity Derivatives (Derivatives) arises from the possibility that the counterparties to the agreements may default on their obligations. We assess the creditworthiness of the counterparties to minimize the risk of counterparty default, and do not require collateral or other security to support the credit risk associated with these Derivatives. The entire portfolio of our Derivatives is held by financial institutions with a Standard & Poor’s rating (or the equivalent) ranging from A- to AA-. Credit risk represents the financial loss we could experience if a counterparty to a financial instrument, in which we have an amount owing from the counterparty, failed to meet its obligations under the terms and conditions of its contracts with us. We are exposed to credit risk, liquidity risk and market risk. Our primary risk management objective is to protect our income and cash flows and, ultimately, shareholder value. We design and implement the risk management strategies discussed below to ensure our risks and the related exposures are consistent with our business objectives and risk tolerance. We use various internal controls, such as credit checks, deposits on account and billing in advance, to mitigate credit risk, and will suspend services when customers have fully used their approved credit limits or violated established payment terms. While our credit controls and processes have been effective in managing credit risk, they cannot eliminate credit risk and there can be no assurance that these controls will continue to be effective or that our current credit loss experience will continue. With the exception of Rogers First Rewards Credit Card program, we are not subject to externally imposed capital requirements. Our overall strategy for capital risk management has not changed since December 31, 2012. The Rogers First Rewards Credit Card program (operated through a 100% owned subsidiary of RCI) is regulated by the Office of the Superintendent of Financial Institutions, which requires that a minimum level of regulatory capital be maintained. Rogers is in compliance with that requirement as at December 31, 2013. This program was launched in the fourth quarter of 2013 and the capital requirements are not material as at December 31, 2013. At December 31, 2013, we had accounts receivable of $1,509 million (December 31, 2012 – $1,536 million), net of an allowance for doubtful accounts of $104 million (December 31, 2012 – $119 million). At December 31, 2013, $452 million (December 31, 2012 – $492 million) of accounts receivable are considered past due, which is defined as amounts outstanding beyond normal credit terms and conditions for the respective customers. Liquidity Risk NOTE 20: FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS Credit Risk