and services on a timely basis, it could have a material adverse effect on our business, financial condition and results of operations. Any interruption in the supply of equipment for our networks could also affect the quality of our service or impede network development and expansion. The industry is competitive in attracting and retaining a skilled workforce. Losing certain employees or changes in morale due to a restructuring or other event could affect our revenue and profitability in certain circumstances. As a holding company, our ability to meet our financial obligations depends primarily on receiving interest and principal payments on intercompany advances, rental payments, cash dividends and other payments from our subsidiaries, together with proceeds raised by us through issuing debt and equity and selling assets. Substantially all of our business activities are operated by our subsidiaries. All of our subsidiaries are distinct legal entities that have no obligation, contingent or otherwise, to make funds available to us whether by dividends, interest payments, loans, advances or other payments, subject to payment arrangements on intercompany advances. Any of these payments must meet statutory or contractual restrictions, are contingent on the earnings of those subsidiaries, and are subject to various businesses and other considerations. Acquiring programming is the single most significant purchasing commitment in our cable business. Programming costs have increased significantly over the past few years, particularly with the recent growth in subscriptions to digital specialty channels. Programming is also a material cost for Media television properties. Higher programming costs could adversely affect the operating results of our business if we are unable to pass on these costs to subscribers. Unfavourable channel placement could negatively affect the tier status and results of certain channels, including The Shopping Channel, Sportsnet, SportsnetONE, Sportsnet World, and our specialty channels, including Outdoor Life Network, The Biography Channel (Canada), G4 Canada, and FX (Canada). Our Media business operates in many industries that can be affected by customers migrating from conventional to digital media, which is driving shifts in the quality and accessibility of data and mobile alternatives to conventional media. We have been shifting our focus towards the digital market to limit this risk. Our Media results could be negatively affected if we are unsuccessful in anticipating the shift in advertising dollars from conventional to digital platforms. Advertising dollars typically migrate to media properties that are leaders in their respective markets and categories, particularly when advertising budgets are tight. Although most of our radio, television and magazine properties currently perform well in their respective markets, this may not continue in the future. Advertisers base a substantial part of their purchasing decisions on ratings and readership data generated by industry associations and agencies. If our radio and television ratings or magazine readership levels decrease substantially, our advertising sales volumes and the rates that we charge advertisers could be adversely affected. Our ability to satisfy our financial obligations depends on our future operating performance and economic, financial, competitive and other factors, many of which are beyond our control. Our business may not generate sufficient cash flow and future financings may not be available to provide sufficient net proceeds to meet these obligations or to successfully execute our business strategy. We collect, pay and accrue significant amounts of income and other taxes such as federal and provincial sales tax, employment taxes and property taxes, for and to various taxation authorities. We have recorded significant amounts of deferred income tax liabilities and current income tax expense, and calculated these amounts based on substantively enacted income tax rates in effect at the relevant time. A legislative change in these rates could have a material impact on the amounts recorded and payable in the future. We have also recorded the benefit of income and other tax positions that are more likely than not of being sustained on examination and are measured at the amount expected to be realized when we have an ultimate settlement with taxation authorities. While we believe we have paid and provided for adequate amounts of tax, our business is complex and significant judgement is required in interpreting tax legislation and regulations. Our tax filings are subject to audit by the relevant government revenue authorities and the results of the government audit could materially change the amount of our actual income tax expense, income taxes payable or receivable, other taxes payable or receivable and deferred income tax assets or liabilities and could, in certain circumstances, result in an assessment of interest and penalties. 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 77 Our Market Position in Radio, Television or Magazine Readership Migrating from Conventional Media to New Media Channel Placement Increasing Programming Costs Holding Company S tructure Organizational S tructure and Talent FINANCIAL RISKS GLYPH<129> requiring us to dedicate a substantial portion of cash flow from operations to pay dividends, interest and principal, which reduce funds available for other business purposes including other financial operations GLYPH<129> making us more vulnerable to adverse economic and industry conditions GLYPH<129> limiting our flexibility in planning for, and/or reacting to, changes in our business and/or industry GLYPH<129> putting us at a competitive disadvantage compared to competitors who may have more financial resources and, or less financial leverage, or GLYPH<129> restricting our ability to obtain additional financing to fund working capital and capital expenditures and for other general corporate purposes. Income Tax and Other Taxes Capital Commitments Liquidity, Debt and Interest Payments Our capital commitments and financing obligations could have important consequences including: MANAGEMENT’S DISCUSSION  AN D ANALYSIS