Cogeco 2009 Annual Report Download - page 82

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Consolidated financial statements COGECO CABLE INC. 2009 81
B) CANADIAN RADIO-TELEVISION AND TELECOMMUNICATIONS COMMISSION PART II LICENCE FEES
Part II licence fees payable to the Canadian Radio-television and Telecommunication Commission (“CRTC”) have been the subject
of litigation between the members of the Canadian Association of Broadcasters (“CAB”), Videotron Ltd. (“Videotron “) and CF Cable
TV Inc. as plaintiffs and the Crown as the defendant. Cogeco Cable Inc. sought and obtained intervener status in this proceeding
with a view of supporting the position of the plaintiffs and protecting its rights to recover past payments of Part II licence fees. On
October 7, 2009, the parties reached an out-of-court settlement in the matter whereby the Part II licence fees for the 2007 through
2009 fiscal years have been waived by the federal government and all pending proceedings discontinued. Accordingly, the
Corporation has reversed its $19.8 million provision for the Part II licence fees payable for the 2007 through 2009 fiscal years in the
current fiscal year. The settlement agreement also provides that the federal government will recommend that the CRTC develop a
new, forward-looking fee regime that would be capped at $100 million per year for the aggregate Part II licence fee liability of
broadcasting licencees, to be indexed annually based on the Consumer price index.
24. COMPARATIVE FIGURES
Certain comparative figures have been reclassified to conform to the current year’s presentation to reflect the reclassification of
foreign exchange gains or losses from operating costs to financial expense.