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102 ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
asset group was determined to be impaired and its carrying
value exceeded its fair value. The Company determined the
fair value of the Citytv brand name using the Capitalized
Royalty Method.
The fair values of the broadcast licences and brand name
declined in 2008 primarily as a result of the weakening of
industry expectations in the conventional television business
and declines in advertising revenues.
The Company has made certain assumptions within the
Greenfield income approach and Capitalized Royalty Method
which may differ or change quickly depending on economic
conditions or other events. Therefore, it is possible that
future changes in assumptions may negatively impact future
valuations of intangible assets which would result in further
impairment losses.
(B) GOODWILL:
A summary of the changes to goodwill is as follows:
2009 2008
Opening balance $ 3,024 $ 3,027
Acquisition of K-Rock and Kix Country (note 4(a)(i)) 6–
Adjustments to Outdoor Life Network purchase price allocation (note 4(b)(i)) (12) 31
Acquisition of Aurora Cable (note 4(b)(ii)) –56
Acquisition of channel m (note 4(b)(iii)) –48
Other acquisitions and adjustments –9
Adjustments to Citytv purchase price allocation(note 4(b)(v)) –7
Impairment charge on conventional television reporting unit (note 11(a)(i)) –(154)
$ 3,018 $ 3,024
(C) INTANGIBLE ASSETS:
Details of intangible assets are as follows:
2009 2008
Cost
prior to
impairment
losses
Accumulated
amortization
Impairment
losses
(note 11 (a)(ii))
Net book
value
Cost
prior to
impairment
losses
Accumulated
amortization
Impairment
losses
(note 11 (a)(ii))
Net book
value
Indefinite life:
Spectrum licences $ 1,969 $ – $ – $ 1,969 $ 1,929 $ – $ – $ 1,929
Broadcast licences 115 – 5 110 164 –75 89
Definite life:
Brand names 420 188 – 232 437 158 14 265
Subscriber bases 1,001 992 – 9 999 900 –99
Roaming agreements 523 225 –298 523 181 –342
Dealer networks 41 41 – – 41 41 – –
Marketing agreement 52 27 –25 52 15 –37
Wholesale agreement ––––13 13 – –
Advertising bookings ––––6 6 – –
$ 4,121 $ 1,473 $ 5 $ 2,643 $ 4,164 $ 1,314 $ 89 $ 2,761