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ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT 97
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(iv) CIKZ-FM Kitchener:
On January 27, 2008, the Company acquired the radio assets of
CIKZ-FM Kitchener in exchange for: the net assets of CICX-FM
Orillia; the redemption of an investment in the shares of the
Kitchener station of $4 million; and $4 million in cash. The
transaction was accounted for using the purchase method
with the results of operations consolidated with those of the
Company effective January 27, 2008.
(v) Citytv:
On October 31, 2007, the Company acquired certain real
properties and 100% of the shares of the legal entities holding
the operations of the Citytv network of five television stations
in Canada, from CTVglobemedia Inc. for cash consideration of
$405 million, including acquisition costs. The acquisition was
accounted for using the purchase method, with the results of
operations consolidated with those of the Company effective
October 31, 2007.
During 2008, the Company finalized the purchase price
allocation of the Citytv acquisition and the Company paid
an additional $3 million as settlement for a working capital
adjustment which increased the purchase price paid to
$408 million. In addition to the working capital adjustment,
valuations of certain tangible and intangible assets acquired
were completed. The adjustments had the following effects
on the purchase price allocation from the amounts recorded
and disclosed in the 2007 consolidated financial statements:
(vi) Other:
During 2007, the Company announced its intention to divest
of the assets of two television stations in British Columbia
and Manitoba for approximately $6 million as part of CRTC
approval to secure the Citytv acquisition. The transaction to
divest these stations received CRTC approval on March 31, 2008
and the transaction closed on May 25, 2008.
During 2008, the Company made various other acquisitions,
accounted for by the purchase method, for cash consideration
of approximately $4 million.
As at
December 31,
2007 Adjustments
Final
purchase
price
allocation
Purchase price $ 405 $ 3 $ 408
Current assets $ 33 $ (2) $ 31
Program inventory 25 (16) 9
PP&E 32 18 50
Brand name 26 –26
Broadcast licence 86 –86
Advertising bookings – 6 6
Future income tax liabilities (15) –(15)
Current liabilities (32) (16) (48)
Other liabilities (14) 6(8)
Fair value of net assets
acquired $ 141 $ (4) $ 137
Goodwill $ 264 $ 7 $ 271
The goodwill has been allocated to the Media reporting segment
and is not tax deductible.