Cogeco 2012 Annual Report Download - page 60

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Consolidated financial statements COGECO CABLE INC. 2012 59
6. OPERATING EXPENSES
2012 2011
(In thousands of Canadian dollars) $ $
Salaries, employee benefits and outsourced services 202,192 188,258
Service delivery costs(1) 365,776 333,877
Customers related costs(2) 43,577 45,400
Other external purchases(3) 67,616 62,615
679,161 630,150
(1) Includes cost of equipment sold, content and programming costs, payment to other carriers and network costs.
(2) Includes advertising and marketing expenses, selling costs, billing expense, bad debts and collection expense.
(3) Includes building expense, professional service fees, Canadian Radio-television and Telecommunications Commission (“CRTC”) fees and other
administrative expense.
7. DEPRECIATION AND AMORTIZATION
2012 2011
(In thousands of Canadian dollars) $ $
Property, plant and equipment 254,597 186,463
Intangible assets 20,406 15,495
275,003 201,958
8. FINANCIAL EXPENSE
2012 2011
(In thousands of Canadian dollars) $ $
Interest on long-term debt 61,052 68,863
Net foreign exchange losses (gains) 121 (2,075)
A
mortization of deferred transaction costs 1,596 1,639
Capitalized borrowing costs(1) (1,873) (541)
Other 3,111 3,276
64,007 71,162
(1) For the years ended August 31, 2012 and 2011, the weighted average interest rate used in the capitalization of borrowing costs was 6%.