Cogeco 2008 Annual Report Download - page 68

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Notes to the Consolidated Financial Statements COGECO CABLE INC. 2008 67
Plans assets consist of:
2008 2007
% %
EQUITY SECURITIES 53 58
DEBT SECURITIES 45 40
OTHER 22
TOTAL 100 100
The significant weighted average assumptions used in measuring the Corporation’s pension and other obligations are as follows:
2008 2007
% %
ACCRUED BENEFIT OBLIGATION
DISCOUNT RATE 5.50 5.50
RATE OF COMPENSATION INCREASE 4.75 4.75
DEFINED BENEFIT PENSION COSTS
DISCOUNT RATE 5.50 5.50
EXPECTED LONG-TERM RATE OF RETURN ON PLANS’ ASSETS 7.25 7.25
RATE OF COMPENSATION INCREASE 5.00 5.00
18. COMMITMENTS AND CONTINGENCIES
COMMITMENTS
As at August 31, 2008, the Corporation and its subsidiaries are committed under lease agreements and other long-term contracts to
make annual payments as follows:
(in thousands of dollars)
2009
$
2010
$
2011
$
2012
$
2013
$
2014 AND
THEREAFTER
$
LEASE AGREEMENTS 14,175 13,443 13,160 11,516 11,503 19,361
OTHER LONG-TERM CONTRACTS 9,592 4,251 1,062 1,210 815 4,500
23,767 17,694 14,222 12,726 12,318 23,861
CONTINGENCIES
The Corporation and its subsidiaries are involved in matters involving litigation arising out of the ordinary course and conduct of its
business. Although such matters cannot be predicted with certainty, management does not consider the Corporation’s exposure to
litigation to be significant to these financial statements.
DISCLOSURE OF GUARANTEES
In the normal course of business, the Corporation enters into agreements containing features that meet the criteria of a guarantee
including the following:
Stamp taxes and withholding taxes
During fiscal 2008, the Corporation guaranteed the payment by Cabovisão of stamp taxes for the 2000 through 2002 years
amounting to €1.7 million and withholding taxes for the 2004 year amounting to €2 million assessed by the Portuguese tax
authorities, which are currently being contested by Cabovisão. Even though the principal amounts in dispute are fully recorded in the