Cogeco 2011 Annual Report Download - page 64

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Consolidated financial statements COGECO CABLE INC. 2011 63
7. Income taxes
2011 2010
(in thousands of dollars) $ $
Current 62,798 (40,859)
Future 6,171 69,877
68,969 29,018
The following table provides the reconciliation between income tax expense at the Canadian statutory federal and provincial income tax rates
and the consolidated income tax expense:
2011 2010
(in thousands of dollars) $ $
Income before income taxes 21,303 186,321
Combined income tax rate 28.91% 31.51%
Income tax expense at combined income tax rate 6,159 58,710
A
djustments for losses or income subject to lower or higher tax rates (6,271) (9,828)
Decrease in future income taxes as a result of a decrease in substantively enacted tax rates – (29,782)
Decrease in income tax recovery arising from the non-deductible impairment of goodwill and fixed assets 59,856 –
Utilization of pre-acquisition tax losses – 4,432
Income taxes arising from non-deductible expenses 543 781
Effect of foreign income tax rate differences 10,568 6,117
Other (1,886) (1,412)
Income tax expense at effective income tax rate 68,969 29,018
The following table presents future income taxes resulting from temporary differences between the carrying amounts of assets and liabilities for
accounting purposes and the amounts used for tax purposes, as well as tax loss carryforwards:
2011 2010
(in thousands of dollars) $ $
Fixed assets (87,646) (87,399)
Deferred charges (4,304) (6,409)
Intangible assets (141,414) (130,558)
Deferred and prepaid revenue 5,646 5,659
Share issuance costs – 858
Partnerships income (86,801) (78,258)
Non-capital loss and other tax credit carryforwards, net of valuation allowance 3,987 2,833
Other 2,369 1,988
Net future income tax liabilities (308,163) (291,286)
Financial statements presentation
Current future income tax assets 4,168 6,133
Long-term future income tax assets 11,063 15,822
Current future income tax liabilities (85,201) (78,267)
Long-term future income tax liabilities (238,193) (234,974)
Net future income tax liabilities (308,163) (291,286)