Rogers 2014 Annual Report Download - page 130

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Source Cable Limited (Source)
In November 2014, we acquired 100% of the common shares of Source for cash consideration of $156 million. Source is a television, Internet, and
phone service provider situated in Hamilton, Ontario, and its subscriber footprint is situated adjacent to existing Rogers cable systems.
Final fair values of assets acquired and liabilities assumed
The table below summarizes the final fair values of the assets acquired and liabilities assumed for all the acquisitions described above.
(In millions of dollars) Source Cable Dealer stores Total
Fair value of consideration transferred 156 46 202
Net identifiable asset or liability:
Cash 1–1
Current assets 224
Property, plant and equipment 9–9
Customer relationships 138 35 73
Current liabilities (6) – (6)
Other liabilities (2) – (2)
Deferred tax liabilities (9) – (9)
Fair value of net identifiable assets acquired and liabilities assumed 33 37 70
Goodwill 123 9 132
Acquisition transaction costs 1–1
Goodwill allocated to the following segments Cable Wireless
1Customer relationships are amortized over a period of 5 years.
The table below shows the incremental revenue, net income (loss) before taxes, depreciation and amortization and restructuring, acquisition and
other expenses for each acquisition since the respective dates of acquisition to December 31, 2014.
(In millions of dollars) Source Cable Dealer stores Total
Incremental revenue 4–4
Net income before taxes 1145
1Excludes acquisition transaction costs.
PRO FORMA DISCLOSURES
If the Source Cable acquisition had occurred on January 1, 2014, we
estimate our incremental revenue from the acquisition would have
been $26 million and incremental net income before taxes would have
been $8 million for 2014.
The pro forma disclosures are based on estimates and assumptions we
believe are reasonable. The information provided is not necessarily an
indication of what our consolidated financial results will be in the
future.
2013 ACQUISITIONS
Mountain Cable
On May 1, 2013, we closed the agreement with Shaw to purchase
100% of the common shares of Mountain Cable for cash consideration
of $398 million. Mountain Cable delivers a full bundle of advanced
cable television, Internet and phone services over its recently
upgraded hybrid fibre and coaxial cable network. The acquisition
expands our cable business in the Southern Ontario area and will allow
us to drive synergies through a larger service area and cost efficiencies.
Blackiron Data (Blackiron)
On April 17, 2013, we closed an agreement to acquire 100% of the
common shares of Blackiron for cash consideration of $198 million.
Blackiron provides Business Solutions the ability to enhance its suite of
enterprise-level data centre and cloud computing services along with
fibre-based network connectivity services.
Score Media Inc. (theScore)
On April 30, 2013, we received final regulatory approval to acquire
theScore. We had already paid $167 million on October 19, 2012 to
obtain 100% of the common shares of theScore. These shares were
held in trust until we received regulatory approval and obtained
control of the business. The acquisition builds on our sports
broadcasting capabilities and reinforces our delivery of premium
sports content to its audiences on their platform of choice.
Pivot Data Centres (Pivot)
On October 1, 2013, we purchased 100% of the common shares of
Pivot for cash consideration of $158 million. Pivot further positions
Business Solutions as a leader in Canadian data centre and hosting
services and will enhance Business Solutions’ ability to serve key
markets with enhanced managed and cloud service offering.
Other
In 2013, we completed other individually immaterial acquisitions for
total cash consideration of $40 million.
126 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT