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2003 Annual Report Rogers Communications Inc.
80
Notes to Consolidated Financial Statements
(b) Rogers Wireless Communications Inc.:
On March 20, 2002, the Company exchanged, with five institutional investors, 4,305,830 Class B Non-Voting shares of the
Company for 4,925,000 Wireless Class B Restricted Voting shares. This transaction increased the Company’s ownership in
Wireless from 52.4% to 55.8%. This transaction had the impact of increasing goodwill by $92.2 million, reducing the carry-
ing value of non-controlling interest by $12.6 million and increasing the carrying value of share capital and contributed
surplus by $104.8 million.
4. PROPERTY, PLANT AND EQUIPMENT:
Details of PP&E are as follows:
2003 2002
Net book Net book
Cost value Cost value
Land and buildings $ 313,695 $ 263,262 $ 298,273 $ 257,673
Towers, head-ends and transmitters 593,757 282,612 536,060 278,632
Distribution cable and subscriber drops 3,438,248 1,855,201 3,136,545 1,785,510
Wireless network equipment 2,629,608 1,369,704 2,419,035 1,363,028
Wireless network radio base station equipment 1,375,739 465,172 1,347,891 489,992
Computer equipment and software 1,193,064 397,867 1,108,670 460,549
Customer equipment 613,741 212,026 613,997 256,144
Leasehold improvements 168,296 67,224 161,159 66,571
Other equipment 416,722 126,236 317,245 93,899
$10,742,870 $ 5,039,304 $ 9,938,875 $ 5,051,998
Depreciation expense for 2003 amounted to $973.6 million (2002 – $928.8 million).
PP&E not yet in service and, therefore, not depreciated at December 31, 2003 amounted to $223.1 million (2002 –
$361.8 million).
5. GOODWILL AND INTANGIBLE ASSETS:
(a) Goodwill:
2003 2002
Goodwill $ 2,264,840 $ 2,265,264
Less accumulated amortization 373,204 373,204
$ 1,891,636 $ 1,892,060
2003:
During 2003, Wireless issued 158,495 Class B Restricted Voting shares upon the exercise of stock options and under the
Wireless employee share purchase plan. These transactions decreased the Company’s ownership in Wireless, thereby
resulting in a dilution gain of $2.0 million and decreasing goodwill by $0.4 million.
2002:
On March 20, 2002, the Company issued 4,305,830 Class B Non-Voting shares of the Company in exchange for 4,925,000
Wireless Class B Restricted Voting shares. This transaction increased the Company’s ownership in Wireless at that time
from 52.4% to 55.8%, thereby increasing goodwill by $92.2 million (note 3(b)).
On April 29, 2002, the Company acquired 13 radio stations from Standard Radio Inc. This transaction had the impact
of increasing goodwill by $94.9 million (note 3(a)).
During 2002, the Toronto Phantoms Football Team ceased operations and, accordingly, the Company wrote off the
unamortized carrying value of the goodwill, being $6.5 million.