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113 ROGERS 2005 ANNUAL REPORT . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Depreciation expense for 2005 amounted to $1,074.8 million (2004 – $984.0 million).
PP&E not yet in service and therefore not depreciated at December 31, 2005 amounted to $364.5 million
(2004 – $305.8 million).
Note 6. Goodwill and intangible assets:
(a ) G OO D W IL L :
2005 2004
Goodwill $ 3,035,787 $ 3,388,687
A summary of the changes to goodwill is as follows:
2005 2004
Opening balance $ 3,388,687 $ 1,891,636
Additions/adjustments to goodwill related to:
Acquisition of Call-Net (note 3(d)) 190,977 –
Acquisition of Wireless (note 3) (53,932) 615,615
Acquisition of Fido (note 3) (26,046) 750,487
Other acquisitions (notes 3(a) and (b)) (9,525) 53,021
Blue Jays (note 7) – 95,509
Reductions to goodwill related to:
Reduction in valuation allowance for acquired future tax assets (note 14) (451,827) –
Write-off of divisions (2,547) (12,225)
Dilution of interest in Wireless – (5,356)
$ 3,035,787 $ 3,388,687
The Company wrote-off goodwill of $2.5 million during 2005 (2004 – $12.2 million) related to the closure of two of its
divisions.
(b ) IN T AN G I BL E A S SET S :
2005 2004
Accumulated Net book Accumulated Net book
Cost amortization value Cost amortization value
(i) Spectrum licences $ 928,553 $ – $ 928,553 $ 1,017,157 $ – $ 1,017,157
(ii) Brand names 410,740 43,292 367,448 406,396 6,927 399,469
(iii)
Subscriber bases 1,112,479 321,799 790,680 942,716 42,648 900,068
(iv) Player contracts 119,926 112,392 7,534 119,926 105,587 14,339
(v) Roaming agreements 523,074 50,623 472,451 531,734 7,078 524,656
(vi) Dealer networks 40,640 11,751 28,889 – – –
(vii) Wholesale agreements 13,000 4,689 8,311 – – –
(viii) Broadcast licence and other 23,600 – 23,600 – – –
$ 3,172,012 $ 544,546 $ 2,627,466 $ 3,017,929 $ 162,240 $ 2,855,689
Amortization of subscriber bases, brand names, player contracts, roaming agreements, dealer networks and wholesale
agreements in 2005 amounted to $382.3 million (2004 – $64.3 million).
(i) As a result of the acquisitions of Fido and Wireless, the Company determined the value of the spectrum licences
acquired to be $520.9 million (note 3(d)). In a spectrum auction conducted by Industry Canada in February 2001,
the Company purchased 23 personal communications services licences of 10 megahertz (“MHz”) or 20 MHz