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90 ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(B) PRODUCT REVENUE:
Revenue is comprised of the following:
The estimated fair values of the assets acquired and liabilities
assumed in the Futureway acquisition are as follows:
Current assets $ 4
Property, plant and equipment 4
Marketing agreement 52
Other intangible assets 7
Future income tax assets 22
Current liabilities (3)
Other liabilities (48)
$ 38
2007 2006
Wireless:
Postpaid $ 4,868 $ 4,084
Prepaid 273 214
One-way messaging 13 15
Network revenue 5,154 4,313
Equipment sales 349 267
5,503 4,580
Cable:
Cable Operations 2,603 2,299
RBS 571 596
Rogers Retail 393 310
Intercompany eliminations (9) (4)
3,558 3,201
Media:
Advertising 623 555
Circulation and subscription 164 149
Retail 282 279
Blue Jays 172 163
Other 76 64
1,317 1,210
Corporate items and intercompany eliminations (255) (153)
$ 10,123 $ 8,838
(A) 2007 ACQUISITIONS:
(i) Futureway Communications Inc.:
On June 22, 2007, the Company acquired the remaining 80%
of the common shares that it did not already own and the
outstanding stock options of Futureway Communications
Inc. (“Futureway”) for cash consideration of $38 million. In
addition, the Company contributed $48 million to Futureway
to simultaneously repay obligations under capital leases,
advances from affiliated companies and to terminate a services
agreement. The total cash outlay for the acquisition was
$86 million. At the same time, Cable entered into a marketing
agreement with the former controlling shareholder of
Futureway that entitles the Company to preferred marketing
arrangements in certain new residential housing developments
in the Greater Toronto Area. The acquisition was accounted
for using the purchase method with the results of operations
consolidated with those of the Company effective June 22,
2007.
4. BUSINESS COMBINATIONS: