Rogers 2008 Annual Report Download - page 105

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ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 101
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Amortization expense for Rogers Retail rental inventory is
charged to cost of sales and amounted to $43 million in 2008
(2007 – $46 million). The costs of acquired program rights are
amortized to operating, general and administrative expenses over
9. OTHER CURRENT ASSETS
2008 2007
Inventories $ 256 $ 110
Prepaid expenses 99 86
Acquired program rights 43 45
Rogers Retail rental inventory 29 32
Deferred compensation 12 10
Other 3 21
$ 442 $ 304
the expected performances of the related programs and amounted to
$103 million in 2008 (2007 – $46 million). Cost of sales includes
$1,260 million (2007 – $915 million) of inventory costs.
Depreciation expense for 2008 amounted to $1,456 million (2007 –
$1,303 million).
10. PROPERTY, PLANT AND EQUIPMENT
2008 2007
Accumulated Net book Accumulated Net book
Cost depreciation value Cost depreciation value
Land and buildings $ 762 $ 156 $ 606 $ 662 $ 133 $ 529
Towers, head-ends and transmitters 1,179 705 474 998 566 432
Distribution cable and subscriber drops 4,874 2,802 2,072 4,562 2,542 2,020
Network equipment 5,320 2,805 2,515 4,749 2,393 2,356
Wireless network radio base station equipment 1,459 876 583 1,250 770 480
Computer equipment and software 2,424 1,730 694 2,068 1,518 550
Customer equipment 1,260 787 473 1,068 614 454
Leasehold improvements 349 193 156 316 175 141
Equipment and vehicles 825 500 325 754 427 327
$ 18,452 $ 10,554 $ 7,898 $ 16,427 $ 9,138 $ 7,289
Details of PP&E are as follows:
PP&E not yet in service and, therefore, not depreciated at December 31,
2008 amounted to $853 million (2007 - $614 million).
.
11. GOODWILL AND INTANGIBLE ASSETS
(A) IMPAIRMENT:
(i) Goodwill:
In the fourth quarter of 2008, the Company determined that
the fair value of its conventional television reporting unit
was lower than its carrying value. This primarily resulted
from weakening of industry expectations in the conventional
television business and declines in advertising revenues. As a
result, the Company recorded a goodwill impairment charge
of $154 million related to its conventional television reporting
unit, which is included in the Company’s Media operating
segment.
In assessing whether or not there is an impairment, the
Company uses a combination of approaches to determine the
fair value of a reporting unit, including both the discounted
cash flows and market approaches. If there is an indication of
impairment, the Company uses a discounted cash flow model
in estimating the amount of impairment. Under the discounted
cash flows approach, the Company estimates the discounted
future cash flows for three to seven years, depending on the
reporting unit, and a terminal value. The future cash flows are
based on the Company’s estimates and include consideration
for expected future operating results, economic conditions and