NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Private Companies
In October 2012, Media completed the purchase of 100% of the
outstanding shares of theScore for $167 million. The shares were
transferred to an interim CRTC-approved trust which was responsible
for the independent management of the business in the normal course
of operations until final approval by the CRTC was obtained. The shares
were accounted for as an investment in a private company as at
December 31, 2012.
In 2013, we received final regulatory approval to transfer the Score
Media Inc. business under the control of Rogers and we accounted for
the acquisition of control under IFRS 3 (note 7).
Investments in Joint Arrangements and Associates
We have interests in a number of associates and joint arrangements.
Certain transactions that occurred in 2012 are described below.
MLSE
MLSE, a sports and entertainment company, owns and operates the Air
Canada Centre, the NHL’s Toronto Maple Leafs, the NBA’s Toronto
Raptors, the MLS’ Toronto FC, the AHL’s Toronto Marlies and other
assets. In August 2012, we, along with BCE Inc., closed the joint
acquisition of a net 75% equity interest in MLSE. Following a leveraged
recapitalization of MLSE, our net cash investment was $540 million,
representing a 37.5% equity interest in MLSE. Our investment in MLSE
is a joint venture and is accounted for using the equity method.
Inukshuk
Inukshuk is a joint operation owned 50% by Rogers that was created to
operate a national fixed wireless telecommunications network to be
used by the partners and their subsidiaries. In December 2012, Inukshuk
sold certain spectrum licences and network equipment to its owners at
fair market value. We and the other non-related venturer each
purchased 50% of the assets at a fair market value of $1,181 million
and a carrying value of $250 million. As a result, we recorded:
 a gain on investment of $233 million in other income in the
consolidated statement of income, representing our 50% share of
the Inukshuk gain relating to the assets sold to the other venturer,
 spectrum licences of $360 million, which includes a $15 million fee
paid in 2011 to the other venturer to acquire certain blocks of
spectrum, and network equipment of $13 million representing the fair
value of the assets purchased less our share of the Inukshuk gain, and
 a decrease of $125 million in our investment in Inukshuk,
representing the carrying value of the assets sold.
The following tables provide summary financial information for the joint
ventures and associates and our portion. We record our investments in
joint ventures and associates using the equity method.
2013 2012
Current assets $ 153 $ 307
Long-term assets 2,434 2,509
Current liabilities 334 1,033
Long-term liabilities 1,146 557
Total net assets $ 1,108 $ 1,226
Our share of net assets $ 554 $ 613
Revenues 648 193
Expenses (income) 644 (710)
Total net income $4 $ 903
Our share of net income $2 $ 219
Certain of our joint ventures have non-controlling shareholders that
have a right to require our joint venture to purchase the non-controlling
interest at a future date.
NOTE 15: OTHER LONG-TERM ASSETS
Note 2013 2012
Spectrum licence deposits 7 $ 250 $–
Other deposits 7 45 –
Long-term receivables 29 19
Deferred installation costs 23 13
Cash surrender value of life insurance 17 16
Deferred pension asset 22 8 9
Deferred compensation 8 9
Other 17 32
$ 397 $9 8
NOTE 16: ACCOUNTS RECEIVABLE SECURITIZATION
We entered into an accounts receivable securitization program with a
Canadian financial institution effective December 31, 2012, which
allows us to sell certain trade receivables into the program. The
proceeds of the sales are committed up to a maximum of $900 million.
We received funding of $650 million under the program in 2013. We
continue to service and retain substantially all of the risks and rewards
relating to the accounts receivables we sold, and therefore, the
receivables remain recognized on our consolidated statements of