Cogeco 2013 Annual Report Download - page 68

Consolidated financial statements COGECO CABLE INC. 2013 67
4. OPERATING SEGMENTS
The Corporation’s profit for the year is reported in three operating segments: Canadian cable services, American cable services and Enterprise
services.
The Canadian and American cable services segments provide a wide range of Television, HSI and Telephony services primarily to residential
customers in Canada and in the United States, respectively. The Canadian and American cable services segment also provides business
services, including data networking, Ethernet, hosting, HSI access and Voice over Internet Protocol (“VoIP”) services, to small and medium
sized businesses.
The Enterprise services segment provides through its data centres, colocation, managed and dedicated hosting, managed IT and cloud
services to small, medium and large enterprises and public sector customers as well as connectivity services provisioned over its wholly-
owned optical networks. It also provides high-performance Ethernet broadband connectivity services to carriers. The activities of the Enterprise
services segment are carried out in Canada, in the United States and in Europe, mostly in the United Kingdom.
The Corporation assesses the performance of each segment based on segment operating income. Financial expense and income taxes are
managed on a total corporation basis and, accordingly, are not reflected in segmented results. The inter-segment eliminations and other
eliminate any intercompany transactions included in each segment’s results and include head office activities. Transactions between segments
are measured at the amounts agreed to between the parties.
Year ended August 31, 2013
Canadian cable
services American cable services Enterprise services
Inter-segment
eliminations
and other Consolidated
(In thousands of Canadian dollars) $$$ $$
Revenue 1,226,275 267,655 200,158 (1,622) 1,692,466
Operating expenses 615,157 147,403 125,712 14,102 902,374
Management fees – COGECO Inc. — — — 9,569 9,569
Integration, restructuring and acquisition costs (1) 4,500 9,309 7,761 — 21,570
Depreciation and amortization 226,535 69,489 86,690 — 382,714
Operating income (loss) 380,083 41,454 (20,005) (25,293) 376,239
Financial expense 128,314
Income taxes 62,842
Profit for the year 185,083
Property, plant and equipment 1,153,287 317,086 383,782 — 1,854,155
Intangible assets 993,352 737,312 180,329 — 1,910,993
Goodwill 4,662 553,373 633,980 — 1,192,015
Acquisition of property, plant and equipment 216,049 48,272 125,314 (2) — 389,635
Acquisition of intangible and other assets 14,382 1,321 2,864 — 18,567
(1) The integration, restructuring and acquisition costs were primarily related to acquisition costs with regards to business combinations (see note 5) and
severance costs associated to the restructuring of our employee base in the Canadian cable services segment.
(2) Acquisition for the Enterprise services segment includes $937,000 of property, plant and equipment acquired through finance leases.
The following table sets out certain geographic market information for the year ended August 31, 2013:
Canada United States Europe Total
(In thousands of Canadian dollars) $$$$
Revenue 1,347,085 327,982 17,399 1,692,466
Property, plant and equipment 1,409,760 394,359 50,036 1,854,155
Intangible assets 1,085,762 812,280 12,951 1,910,993
Goodwill 313,087 816,526 62,402 1,192,015