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Section III: Supplementary Information

Financial Highlights

The financial information included in this section was prepared in accordance with the accrual method of accounting and extracted from the NFB’s 2010–2011 audited financial statements. The reduction in non-financial assets is due to the end in 2009–2010 of a substantial three-year acquisitions cycle related to the new media digital shift. Several capital-lease contracts thus expired, in part accounting for the decrease in liabilities. Added to this is a significant reduction in the provision for future benefits, since NFB staffers’ average years of service have dropped due to a number of retirements. Liabilities for 2009–2010 included payables for relocating the Vancouver office.

Condensed Statement of Financial Position
As at March 31, 2011 ($ thousands)
  % Change 2011 2010
Financial assets -2.7 5,807 5,966
Non-financial assets -11.9 8,838 10,030
TOTAL ASSETS -8.4 14,645 15,996
     Total Liabilities -17.9 11,485 13,996
     Total Equity   3,160 2,000
TOTAL LIABILITIES AND EQUITY -8.4 14,645 15,996

Operating expenses continue to decrease from year to year. This is due to several factors, including the reduction of the termination of employment provision, and the reduction in the number of co-productions, with the concomitant decrease in co-production payments. Expenses for professional services increased due to the production of several important films in 2009–2010, such as Higglety Pigglety Pop!, Le printemps de Melie and L’Homme qui dort. Repair and upkeep expenses, which do not meet capitalization criteria, increased because of research and activities related to relocating the NFB’s head office and Montreal CineRobotheque.

Film copy sales remained stable, in spite of the market’s ongoing transition to new media. Royalties were affected by the television market, which is converging to the new generation of online viewing. In 2009-2010, sponsored production revenues and presales comprised a substantial presale to Warner Bros. Home Entertainment Inc. for the production of Higglety Pigglety Pop!, as well as two partnerships: one with the Cirque du Soleil Inc. for the film Impressions, and a second with Human Resources and Skills Development Canada for the Web production Work for All. In 2009-2010, NFB Images posted sales through participation in a joint project with Canadian Heritage to make stockshots available online in schools. The increase in other revenue is related to an exchange rate loss incurred in 2009-2010, due to transaction amounts collected in foreign currency.

Condensed Statement of Operations
For the year ended March 31, 2011 ($ thousands)
  % Change 2011 2010
EXPENSES      
Salaries and benefits -3.8 37,549 39,034
Professional and special services 1.1 10,679 10,564
Rentals -1.5 8,405 8,537
Transportation, communication, material & supplies and information 0.4 6,062 6,037
Amortization of capital assets 1.9 3,307 3,246
Cash financing in co-productions -11.5 2,401 2,712
Royalties and contracted film production and laboratory processing -22.6 1,402 1,812
Repairs and upkeep 24.7 1,197 960
Other -12.8 423 485
     Total Expenses -2.7 71,425 73,387
REVENUES      
Film prints 4.1 2,086 2,004
Royalties -14.5 1,357 1,587
Other 28.4 438 341
Stockshots -44.9 429 779
Sponsored production and pre-sale -80.3 392 1,993
     Total Revenues -29.9 4,702 6,704
NET COST OF OPERATIONS 0.1 66,723 66,683

Expenditures

The percentage of NFB expenses related to film production, distribution, marketing, accessibility and digital initiatives has remained stable from year to year. The effort to transition to new media is continuing: the functionalities of the NFB’s online viewing space have been improved, and this explains the spending increase in the “digital development and applications” category.

  2010-11 2009-10 2010-11 2009-10
  ($ thousands) %
Programming - French & English 39,067 41,338 54.7 56.4
Distribution 5,853 5,906 8.2 8.0
Marketing, Accessibility & Outreach 13,501 13,545 18.9 18.5
Digital development and applications 3,956 3,536 5.5 4.8
Sub-total 62,377 64,325 87.3 87.7
Internal Services 9,048 9,062 12.7 12.3
Total expenses 71,425 73,387 100.0 100.0

Revenue

The institutional and educational markets continue to be the NFB’s top revenue-generating sectors. The continuity of several provinces’ subscriptions to the NFB.ca educational space makes it possible to keep revenues fairly stable from year to year. In addition, the NFB entered into a substantial agreement with the Nunavut Ministry of Education for the large-scale Inuit Audiovisual Heritage project.

Revenue

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In 2009-2010, sponsored production revenues and presales comprised a substantial presale to Warner Bros. Home Entertainment Inc. for the production of Higglety Pigglety Pop!, as well as two partnerships: one with the Cirque du Soleil Inc. for the film Impressions/Glimpses, and a second with Human Resources and Skills Development Canada for the Work for All website.

The increase in other revenue is related to an exchange rate loss incurred in 2009-2010, due to transaction amounts collected in foreign currency.

Financial Statements

http://www.onf-nfb.gc.ca/medias/download/documents/pdf/nfb-financial-statements-2010-2011.pdf

List of Supplementary Information Tables

All electronic supplementary information tables found in the 2010–11 Departmental Performance Report can be found on the Treasury Board of Canada Secretariat website.8

Sources of Respendable and Non-Respendable Revenue
Details on Transfer Payment Programs (TPPs)
Internal Audits and Evaluations

Section IV: Other Items of Interest

Organizational Contact Information

Amélie Saint-Germain
Senior Analyst, Strategic planning and government relations
a.saint-germain@onf.ca
514-496-1044


1 - It should be noted that the NFB will put in place a new PAA for the 2011-2012 fiscal year.

2 - "Type" is categorized as follows: Previously committed to—committed to in the first or second fiscal year before the subject year of the report; Ongoing—committed to at least three fiscal years before the subject year of the report; and New—newly committed to in the reporting year of the Departmental Performance Report.

3 - Canadian Media Production Association (CMPA), Profile 2010, An Economic Report on the Screen-based Production Industry in Canada, 103 pp, 2010

4 - The Conference Board of Canada, Valoriser notre culture: Mesurer et comprendre l'économie créative du Canada, 78p, 2008

5 - Commencing in the 2009–10 Estimates cycle, the resources for Program Activity: Internal Service is displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This has affected the comparability of spending and FTE information by program activity between fiscal years.

6 - See Public Accounts of Canada 2010, http://www.tpsgc-pwgsc.gc.ca/recgen/txt/72-eng.html.

7 - Statistics Canada, Canadian Internet Use Survey, 2010, http://www.statcan.gc.ca/daily-quotidien/110525/t110525b1-eng.htm

8 - See 2010–11 Part III—Departmental Performance Reports (DPR): Supplementary Information (Tables), http://www.tbs-sct.gc.ca/dpr-rmr/2010-2011/index-eng.asp.