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96 ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Amortization of brand names, subscriber bases, baseball player
contracts, roaming agreements, dealer networks, wholesale
agreements and marketing agreement amounted to $282 million
for the year ended December 31, 2007 (2006 – $387 million).
During 2007, the Company entered into a marketing agreement with
the former controlling shareholder of Futureway (note 4(a(i)). The
marketing agreement had a fair value of $52 million on acquisition.
During 2007, brand names increased by $26 million resulting from
the acquisition of Citytv (note 4(a)(ii)).
During 2007, broadcast licences increased by $117 million and
subscriber bases by $1 million as a result of acquisitions.
During 2007, the Company contributed its 2.3 GHz and 3.5 GHz
spectrum licences with a carrying value of $11 million to its 50%
owned joint venture (note 5). The Company also recorded an increase
in spectrum licenses of $25 million as a result of contributions by
the other venturer, related to the Company’s proportionate share
Refer to note 2(h) for the change in accounting policy related to
investments in publicly traded companies.
of the contribution. Accordingly, the carrying value of spectrum
licences has been increased by approximately $20 million.
During 2006, the Company contributed its 2.5 GHz spectrum licence
with a carrying value of $55 million to its 50% owned joint venture.
Accordingly, the carrying value of spectrum licences was reduced
by approximately $28 million.
During 2006, the valuation of intangible assets acquired as part of
the Call-Net acquisition was finalized (note 4(b)). This resulted in a
$24 million increase in subscriber bases acquired. The offset to this
adjustment was recorded as a reduction to goodwill.
During 2006, the Company reduced the value ascribed to subscriber
bases by $91 million as it reduced the valuation allowance related
to future income taxes arising on acquisition (note 7).
During 2006, broadcast licences increased by $7 million as a result of
acquisition and purchase price adjustments in Media.
Amortization of deferred charges for 20 07 amounted to
$20 million (2006 – $25 million). Accumulated amortization as at
December 31, 2007, amounted to $77 million (2006 – $121 million).
Effective January 1, 2007, the Company records all transaction
costs related to financial assets and liabilities in the consolidated
statements of income as incurred. As a result, the carrying value
12. INVESTMENTS:
2007 2006
Quoted
Carrying market Carrying
Number Description value value value
Investments accounted for by
the equity method $ 12 $ 7
Publicly traded companies, at quoted
market value in 2007:
Cogeco Cable Inc. 6,595,675 Subordinate Voting Common shares 315 $ 214 69
Cogeco Inc. 3,399,800 Subordinate Voting Common shares 134 100 44
Other publicly traded companies 16 15 4
465 $ 329 117
Private companies 8 15
$ 485 $ 139
13. DEFERRED CHARGES:
2007 2006
CRTC commitments $ 72 $ 23
Deferred installation costs (note 2(b)(iv)) 18 17
Financing and transaction costs 4 59
Pre-operating costs 3 8
Deferred commissions and other 14 11
$ 111 $ 118