Rogers 2008 Annual Report Download - page 107

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ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 103
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
12. INVESTMENTS
2008 2007
Carrying Carrying
Number Description value value
Publicly traded companies, at quoted
market value:
Cogeco Cable Inc. 6,595,675 Subordinate Voting Common shares $ 228 $ 315
Cogeco Inc. 3,399,800 Subordinate Voting Common shares 85 134
Other publicly traded companies 6 16
319 465
Private companies, at cost: 17 8
Investments accounted for by the equity method 7 12
$ 343 $ 485
The Company participated in the Advanced Wireless Services
spectrum auction in Canada which concluded on July 21, 2008, and
acquired 20 MHz of spectrum across all 13 provinces and territories.
The payments made to Industry Canada for the spectrum during
the year ended December 31, 2008, totalled approximately $1,002
million. In addition, $6 million of incremental costs associated with
the acquisition of the spectrum licences were capitalized, resulting
in a total cost of $1,008 million. This amount has been recorded as
part of the spectrum licences. The Company has determined that
these licences have indefinite lives for accounting purposes and
are, therefore, not being amortized.
During 2008, broadcast licences increased by $17 million as a result
of acquisitions and decreased by $75 million to reflect impairment of
the carrying amount of the Citytv broadcast licence (note 11(a)(ii)).
During 2008, brand names decreased by $14 million to reflect
impairment of the carrying amount of the Citytv brand name (note
11(a)(ii)).
During 2008, subscriber bases increased by $13 million resulting
from the acquisition of Aurora Cable (note 4(a)(ii)).
During 2008, the valuation of intangible assets acquired as part of
the Citytv acquisition was finalized (note 4(b)(ii)). This resulted in a
$6 million increase in advertising bookings.
Amortization of brand names, subscriber bases, baseball player
contracts, roaming agreements, dealer networks, wholesale
agreements and marketing agreement amounted to $280 million
for the year ended December 31, 2008 (2007 - $282 million).
During 2007, the Company entered into a marketing agreement
with the former controlling shareholder of Futureway (note 4(b)
(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(b)(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 licences of $25 million as a result of contributions by the
other venturer, related to the Company’s proportionate share of the
contribution. Accordingly, the carrying value of spectrum licences
was increased by approximately $20 million.