Rogers 2005 Annual Report Download - page 116

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112 ROGERS 2005 ANNUAL REPORT . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(e ) I NT E G RA T IO N E X P EN S ES :
As part of the acquisition of Call-Net and Fido, the Company incurred certain integration costs that did not qualify to be
included as part of the purchase price allocation as a liability assumed on acquisition. Rather, these costs are recorded
within operating expenses. These expenses include various severance, consulting and other incremental restructuring
costs directly related to the acquisitions.
During 2005, the Company incurred $12.9 million in integration expenses related to the Call-Net acquisition
and $53.6 million in integration expenses related to the Fido acquisition (2004 – $4.4 million).
(f ) PR O F O R MA RE S UL T S O F O P ER A T IO N S:
The pro forma results of operations had the Company acquired Call-Net on January 1, 2004 and Wireless and Fido on
January 1, 2003, would have been as follows:
(Unaudited) 2005 2004
Operating revenue $ 7,909,771 $ 6,958,303
Loss for the year $ (175,684) $ (661,726)
Loss per share:
Basic and diluted $ (0.60) $ (2.66)
Note 4. Other current assets:
2005 2004
Inventories $ 117,182 $ 123,457
Video rental inventory 35,309 31,132
Prepaid expenses 111,908 88,288
Acquired program rights 20,984 13,651
Other 12,463 3,989
$ 297,846 $ 260,517
Depreciation expense for video rental inventory is charged to operating, general and administrative expenses
and amounted to $64.3 million in 2005 (2004 – $62.5 million). The costs of acquired program rights are amortized to
operating, general and administrative expenses over the expected performances of the related programs and amounted
to $25.9 million in 2005 (2004 – $25.8 million).
Note 5. Property, plant and equipment:
Details of PP&E are as follows:
2005 2 0 0 4
Accumulated Net book Accumulated Net book
Cost depreciation value Cost depreciation value
Land and buildings $ 405,489 $ 76,816 $ 328,673 $ 349,029 $ 62,364 $ 286,665
Towers, headends and transmitters 743,349 361,958 381,391 670,229 340,197 330,032
Distribution cable and
subscriber drops 4,081,473 2,070,422 2,011,051 3,707,609 1,816,561 1,891,048
Network equipment 3,870,411 1,889,486 1,980,925 3,091,614 1,455,907 1,635,707
Wireless network radio
base station equipment 1,501,961 1,105,396 396,565 1,459,153 994,341 464,812
Computer equipment and software 1,567,927 1,129,387 438,540 1,310,068 906,645 403,423
Customer equipment 714,028 404,592 309,436 625,130 389,301 235,829
Leasehold improvements 260,055 152,402 107,653 210,810 123,827 86,983
Other equipment 532,315 335,023 197,292 495,036 342,698 152,338
$13,677,008 $ 7,525,482 $ 6,151,526 $ 11,918,678 $ 6,431,841 $ 5,486,837