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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The tables below summarize the changes in the net carrying amounts of intangible assets and goodwill in 2015 and 2014.
(In millions of dollars) December 31, 2014 December 31, 2015
Net carrying
amount
Acquisitions
from business
combinations Net additions Amortization 1Other 2
Net carrying
amount
Spectrum licences 5,576 458 381 – 1 6,416
Broadcast licences 225 – – – – 225
Brand names 151 – – (15) – 136
Customer relationships 281 19 – (101) (4) 195
Roaming agreements 79 – – (44) – 35
6,312 477 381 (160) (3) 7,007
Acquired program rights 276 – 64 (87) (17) 236
Total intangible assets 6,588 477 445 (247) (20) 7,243
Goodwill 3,883 8 – – – 3,891
Total intangible assets and goodwill 10,471 485 445 (247) (20) 11,134
1Of the $247 million of total amortization, $87 million related to acquired program rights is included in Other external purchases in Operating costs (seenote6),and$160million
in depreciation and amortization on the Consolidated Statements of Income.
2Includes disposals, write-downs, reclassifications, and other adjustments including a write-off of certain programming rights following a reorganization of the OMNI television
stations (see note 9).
(In millions of dollars) December 31, 2013 December 31, 2014
Net carrying
amount
Acquisitions
from business
combinations Net additions Amortization 1Other 2
Net carrying
amount
Spectrum licences 2,275 – 3,301 – – 5,576
Broadcast licences 225 – – – – 225
Brand names 167 – – (16) – 151
Customer relationships 309 73 – (104) 3 281
Roaming agreements 123 – – (44) – 79
Marketing agreements 1 – – (1) – –
3,100 73 3,301 (165) 3 6,312
Acquired program rights 111 – 231 (66) – 276
Total intangible assets 3,211 73 3,532 (231) 3 6,588
Goodwill 3,751 132 – – – 3,883
Total intangible assets and goodwill 6,962 205 3,532 (231) 3 10,471
1Of the $231 million of total amortization, $66 million related to acquired program rights is included in Other external purchases in Operating costs (seenote6),and$165million
in depreciation and amortization on the Consolidated Statements of Income.
2Includes disposals, write-downs, reclassifications, and other adjustments.
2015 SPECTRUM LICENCE ACQUISITIONS
2500 MHz spectrum licence auction
We participated in the 2500 MHz spectrum licence auction in
Canada. We were awarded 41 spectrum licences consisting of
20 MHz blocks of contiguous, paired spectrum in major
geographic markets in Canada. Upon acquisition, we recognized
the spectrum licences as intangible assets of $27 million, which
included $3 million of directly attributable costs.
Shaw spectrum licences
We obtained 20 MHz of contiguous, paired AWS-1 spectrum
licences from Shaw Communications Inc. (Shaw) after exercising a
previously acquired option and paying the final $100 million
installment ($250 million was previously paid in 2013). Upon
acquisition, we recognized the spectrum licences as intangible
assets of $352 million, which included $2 million of directly
attributable costs. Subsequent to exercising the option, certain
non-contiguous spectrum licences acquired from Shaw were
transferred to WIND Mobile Corp. (WIND) for nominal cash
proceeds.
Data & Audio-Visual Enterprises Wireless Inc. (Mobilicity) spectrum
licences
We obtained $458 million of AWS-1 spectrum licences through
our Mobilicity acquisition as describedinnote26,andrecognized
the licences of $458 million as intangible assets upon acquisition.
2014 SPECTRUM LICENCE ACQUISITIONS
700 MHz spectrum licence auction
We participated in the 700 MHz spectrum licence auction in
Canada, and were awarded spectrum licences consisting of two
12 MHz blocks of contiguous, paired lower 700 MHz band
108 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT