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110 ROGERS 2005 ANNUAL REPORT . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
the Company was able to finalize the list of those employees who would be retained and those whose employment
would be severed in order to avoid the duplication of functions within the integrated enterprise.
The resulting adjustments to the liabilities assumed on acquisition and payments made against such liabilities
during 2005 are as follows:
As at As at
December 31, Revised December 31,
2004 Adjustments liabilities Payments 2005
Network decommissioning and restoration costs $ 52,806 $ (18,505) $ 34,301 $ (18,496) $ 15,805
Lease and other contract termination costs 48,329 (21,648) 26,681 (22,997) 3,684
Involuntary severance 27,891 (15,557) 12,334 (10,156) 2,178
$ 129,026 $ (55,710) $ 73,316 $ (51,649) $ 21,667
The remaining liability as at December 31, 2005 will be paid over the course of 2006.
(i i i ) O t he r :
On December 23, 2004, the Company purchased the remaining 20% interest of Rogers Sportsnet for $45 million. The purchase
price was allocated to goodwill on a preliminary basis pending completion of the valuations of the net identifiable
assets acquired. In October 2005, an adjustment was made to allocate $23.6 million of the purchase price to broadcast
licence with an offsetting reduction to goodwill. The broadcast licence has an indefinite life.
On January 2, 2004, the Company acquired 50% of CTV Specialty Television Inc.’s mobile production and distri-
bution business (“Dome Productions”) for cash of $21.3 million, net of cash acquired of $3.5 million. Dome Productions
has been proportionately consolidated with the Company since acquisition of the 50% interest on January 2, 2004.
Goodwill related to the acquisitions of Sportsnet and Dome Productions has been assigned to the Media
reporting segment.
During 2004, the Company had other acquisitions with purchase consideration of $0.4 million.
(c ) A D JUS T ME N TS TO P RE L IM I N AR Y P U RC H A SE AL L OC A T IO N S R EL A T ED TO 20 0 4 A C QU I SI T I ON S :
During 2005, the purchase price allocations related to the 2004 acquisitions were adjusted to reflect final valuations of
tangible and intangible assets acquired as well as updated information and estimates related to Fido restructuring and
integration plans. The following table summarizes the adjustments made to the purchase price allocations from those
disclosed at December 31, 2004:
Wireless Fido Other Total
Increase (decrease) in estimated fair value of net assets acquired:
Subscriber bases $ 15,263 $ 31,500 $ – $ 46,763
Brand names 903 2,500 941 4,344
Roaming agreements (10,160) 1,500 – (8,660)
Dealer networks 27,140 13,500 – 40,640
Wholesale agreements – 13,000 – 13,000
Spectrum licences (1,768) (91,600) – (93,368)
Broadcast licence – – 23,600 23,600
PP&E 1,020 5,590 – 6,610
Deferred revenue – (5,654) – (5,654)
32,398 (29,664) 24,541 27,275
Decrease in liabilities assumed on acquisition – 55,710 – 55,710
Decrease (increase) in acquisition costs 1,078 – (63) 1,015
Adjustment to fair value of unvested options 20,456 – – 20,456
Decrease in goodwill $ 53,932 $ 26,046 $ 24,478 $ 104,456