Cogeco 2009 Annual Report Download - page 68

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Consolidated financial statements COGECO CABLE INC. 2009 67
B) GOODWILL
During fiscal years 2009 and 2008, goodwill variation was as follows:
2009
2008
(in thousands of dollars) $
$
BALANCE, BEGINNING OF YEAR
487,805
342,584
BUSINESS ACQUISITIONS AND RELATED ADJUSTMENTS
(NOTE 2)
(647)
116,890
RECOGNITION OF PRE-ACQUISITION TAX LOSSES
(6,142)
–
IMPAIRMENT
(NOTE 7)
(339,206)
–
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
11,885
28,331
BALANCE, END OF YEAR
153,695
487,805
At August 31, 2009 and 2008, the Corporation tested the value of goodwill for impairment and concluded that no impairment existed.
13. BANK INDEBTEDNESS
The Corporation has a swingline facility available for an amount of $25 million, of which none was used at August 31, 2009
($10,093,000 at August 31, 2008). This facility requires commitment fees and bears interest at the bank prime rate. At August 31,
2009, the interest rate on bank indebtedness is 2.25% (4.75% in 2008). This facility, which matures on July 28, 2011, is secured on
the same basis and is subject to the same restrictions as the Term Facility (note 14 a)).