Cogeco 2006 Annual Report Download - page 53

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Notes to Consolidated Financial Statements COGECO CABLE INC. 2006 51
8. CUSTOMER BASE AND PRELIMINARY GOODWILL
(amounts are in thousands of dollars) 2006 2005
$ $
CUSTOMER BASE 989,552 989,552
PRELIMINARY GOODWILL 422,108 —)
1,411,660 989,552
During the year 2006, customer base and preliminary goodwill variation were as follows:
(amounts are in thousands of dollars) CUSTOMER PRELIMINARY
BASE GOODWILL TOTAL
$ $ $
BALANCE, BEGINNING OF YEAR 989,552 — 989,552
BUSINESS ACQUISITION (NOTE 2) — 431,024 431,024
FOREIGN CURRENCY TRANSLATION ADJUSTMENT — (8,916) (8,916)
BALANCE, END OF YEAR 989,552 422,108 1,411,660
At August 31, 2006 and 2005, the Corporation tested the value of customer base for impairment and concluded that no
impairment existed.
9. BANK INDEBTEDNESS
The Corporation has a swingline facility available for an amount of $25,000,000, none of which was used at August 31, 2006
and 2005. This facility requires commitment fees and bear interest at bank prime rate plus 0.375%. At August 31, 2006,
the interest rate on bank indebtedness is 6.375% (4.50% in 2005). This facility matures on July 28, 2011 and is secured
on the same basis as the Term Facility (note 10 a)).