Rogers 2006 Annual Report Download - page 96

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92 RO GERS CO MMU NICAT ION S IN C . 20 0 6 ANN UA L RE POR T
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
10 P ROPERTY, PL ANT AND EQU IPME NT
Details of PP&E are as follows:
2006 2005
Accumulated Net book Accumulated Net book
Cost depreciation value Cost depreciation value
Land and buildings $ 561 $ 102 $ 459 $ 405 $ 77 $ 328
Towers, headends and transmitters 898 451 447 743 362 381
Distribution cable and subscriber drops 4,288 2,303 1,985 4,081 2,070 2,011
Network equipment 4,420 2,233 2,187 3,870 1,889 1,981
Wireless network radio base station equipment 1,619 1,210 409 1,502 1,105 397
Computer equipment and software 1,789 1,319 470 1,568 1,129 439
Customer equipment 922 513 409 714 405 309
Leasehold improvements 293 169 124 260 152 108
Other 614 372 242 534 336 198
$ 15,404 $ 8,672 $ 6,732 $ 13,677 $ 7,525 $ 6,152
PP&E not yet in service and therefore not depreciated at December 31,
2006 amounted to $403 million (2005 – $365 million).
Other primarily includes miscellaneous equipment and vehicles.
Depreciation expense for 2006 amounted to $1,172 million (2005 –
$1,075 million).
11 G OODWILL AND INT ANGIBLE ASS ETS
(A) GOODWILL:
A summary of the changes to goodwill is as follows:
2006 2005
Opening balance $ 3,036 $ 3,389
Adjustments to Call-Net purchase allocation (note 4(b)) (47) 191
Adjustments to Wireless purchase allocation – (54)
Adjustments to Fido purchase allocation – (26)
Adjustments to other purchase allocations (6) (9)
Other acquisitions (note 4(a)) 5 –
Reduction in valuation allowance for acquired future income tax assets (note 7) (209) (452)
Closure of divisions – (3)
$ 2,779 $ 3,036
During 2005, the purchase price allocations related to the 2004 acqui-
sitions of Fido and the remaining minority interests in Wireless were
adjusted to reflect final valuations of tangible and intangible assets
acquired and to reflect adjustments to various liabilities assumed
on acquisition. The offset of these adjustments was recorded as a
charge to goodwill.
The Company wrote off goodwill of $3 million during 2005 related to
the closure of two of its divisions.