Cogeco 2010 Annual Report Download - page 59

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58 COGECO CABLE INC. 2010 Consolidated Financial Statements
of assessment to reduce tax losses by €7.3 million, €29.6 million and €17.1 million, respectively. However, Cabovisão does not agree with the
assessments and has initiated legal proceedings against the Portuguese tax authorities. In accordance with current legislation, tax returns are
subject to review and correction by the tax authorities during a four-year period. These periods can be extended or suspended when there are
tax losses, tax benefits granted, tax inspections, claims or appeals in progress. Consequently, Cabovisão’s tax returns for the taxation years
2006 to 2010 are still subject to review by the tax authorities and therefore, the amount of available tax losses could be significantly reduced
based on past experience. These losses expire as follows:
2011 2012 2014 2015
(in thousands of dollars) $$ $ $
31,143 48,964 21,154 13,548
9. Earnings (loss) per share
The following table provides the reconciliation between basic and diluted earnings (loss) per share:
2010 2009
(in thousands of dollars, except number of shares and per share data) $ $
(restated)
Net income (loss) 157,303 (258,228)
Weighted average number of multiple voting and subordinate voting shares outstanding 48,520,183 48,545,296
Effect of dilutive stock options(1) 133,994 –
Effect of dilutive subordinate voting shares held in trust under the Incentive Share Unit Plan 45,163 –
Weighted average number of diluted multiple voting and subordinate voting shares outstanding 48,699,340 48,545,296
Earnings (loss) per share
Basic 3.24 (5.32)
Diluted 3.23 (5.32)
(1) In 2010, 87,974 stock options (233,858 in 2009) were excluded from the calculation of diluted earnings (loss) per share as the exercise price of the options was
greater than the average share market price of the subordinate voting shares. Furthermore in 2009, the weighted average dilutive potential number o
f
subordinate voting shares, which were antidilutive, amounted to 125,326.