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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
98 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT
Amortization of brand names, customer relationships, roaming
agreements and marketing agreements amounted to $87 million for
the year ended December 31, 2010 (2009 – $181 million).
During 2010, spectrum licences, which are recorded in the Wireless
segment, increased by $47 million from the proportionate share of the
spectrum acquisitions made by Inukshuk (note 5).
During 2010, broadcast licences decreased by $6 million to reflect
impairment of the carrying amount of the broadcast licence of a radio
station (note 11(a)(ii)).
During 2010, customer relationships increased by $72 million as a result
of acquisitions across all divisions.
During 2009, spectrum licences, which are recorded in the Wireless
segment, increased by $40 million from the proportionate share of the
spectrum acquisitions made by Inukshuk (note 5).
During 2009, broadcast licences increased by $26 million as a result of
acquisitions and adjustments to previously recorded purchase price
allocations, and decreased by $5 million to reflect impairment of the
carrying amount of a radio broadcast licence and a conventional
television broadcast licence (note 11(a)(ii)). On July 29, 2009, the
Company acquired the radio licence for CFDR-AM Halifax from Newcap
Inc. for cash consideration of $5 million and its CIGM-AM Sudbury radio
licence, valued at $2 million.
During 2009, brand names decreased by $3 million to reflect the full
amortization and removal of a trademark.
During 2009, customer relationships increased by $2 million as a result
of Media acquisitions.
(B) GOODWILL:
A summary of the changes to goodwill is as follows:
2010 2009
Opening balance $ 3,018 $ 3,024
Acquisition of Blink (note 4(a)(i)) 66 –
Acquisition of Cityfone (note 4(a)(ii)) 6–
Acquisition of Kincardine (note 4(a)(iii)) 10 –
Acquisition of BV! Media (note 4(a)(iv)) 15 –
Acquisition of K-Rock and KIX Country (note 4(c)(i)) –6
Adjustments to Outdoor Life Network purchase price allocation (note 4(c)(ii)) –(12)
$ 3,115 $ 3,018
(C) INTANGIBLE ASSETS:
Details of intangible assets are as follows:
2010 2009
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 $ 2,016 $ – $ – $ 2,016 $ 1,969 $ – $ – $ 1,969
Broadcast licences 110 – 6 104 115 – 5 110
Definite life:
Brand names 420 205 –215 420 188 –232
Customer relationships 1,073 1,007 –66 1,001 992 – 9
Roaming agreements 523 269 –254 523 225 –298
Marketing agreement 52 38 –14 52 27 –25
$ 4,194 $ 1,519 $ 6 $ 2,669 $ 4,080 $ 1,432 $ 5 $ 2,643