Cogeco 2008 Annual Report Download - page 23

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22 COGECO CABLE INC. 2008 Management’s Discussion and Analysis
data security and co-location to a wide range of business customers and organizations throughout the Greater Toronto Area
(“GTA”). This acquisition allows the Corporation to further the development of its business telecommunications activities.
These acquisitions were accounted for using the purchase method. The results have been consolidated as of the acquisition dates.
The allocation of the purchase price of the acquisitions is as follows:
CDS(1) OTHER TOTAL
(in thousands of dollars) $ $ $
CONSIDERATION PAID
PURCHASE PRICE OF SHARES OR ASSETS 200,000 28,113 228,113
ACQUISITION COSTS 1,988 852 2,840
201,988 28,965 230,953
NET ASSETS ACQUIRED
CASH AND CASH EQUIVALENTS 1,230 – 1,230
ACCOUNTS RECEIVABLE 4,575 968 5,543
PREPAID EXPENSES 535 612 1,147
FIXED ASSETS 57,098 19,102 76,200
DEFERRED CHARGES – 24 24
CUSTOMER RELATIONSHIPS 33,983 4,220 38,203
GOODWILL 112,228 4,662 116,890
FUTURE INCOME TAX ASSETS 2,335 – 2,335
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES ASSUMED (4,380) (361) (4,741)
DEFERRED AND PREPAID INCOME AND OTHER LIABILITIES ASSUMED (4,958) (262) (5,220)
PENSION PLAN LIABILITIES AND ACCRUED EMPLOYEE BENEFITS (356) – (356)
FUTURE INCOME TAX LIABILITIES (302) – (302)
201,988 28,965 230,953
(1)THE PURCHASE PRICE ALLOCATION OF CDS IS PRELIMINARY AND WILL BE FINALIZED DURING THE 2009 FISCAL YEAR.