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66 COGECO CABLE INC. 2012 Consolidated financial statements
The following key assumptions were used to determine the recoverable amounts in the most recent impairment tests performed at August
31, 2012 and 2011 and September 1, 2010:
August 31, 2012 August 31, 2011 September 1, 2010
Pre-ta
x
discount rate
Perpetual
growth
rates
Pre-ta
x
discount rate
Perpetual
growth
rates
Pre-ta
x
discount rate
Perpetual
growth
rates
Group of CGUs %%%% % %
Cable services Ontario 10.6 2.0 11.8 2.6 11.3 1.7
Cable services Quebec 10.4 2.0 11.4 4.3 10.8 3.0
Enterprise services 11.0 6.0 10.6 2.5 10.4 3.4
The following table presents, for each group of CGUs, the change in the discount rate and in the perpetual growth rate used for the tests
performed that would have been required in order for the recoverable amount to equal the carrying value of the CGU at August 31, 2012:
Increase in
pre-tax discount rate
Decrease in
perpetual growth rates
Group of CGUs % %
Cable services Ontario 8.8 10.2
Cable services Quebec 4.7 4.7
Enterprise services 0.4 0.3
14. PROVISIONS
Withholding and
stamp taxes
Programming
costs Othe
r
Total
(In thousands of Canadian dollars) $$$ $
Balance at September 1, 2011 7,380 7,428 500 15,308
Provisions made during the year 13,860 758 14,618
Provisions used during the year (15,754) (194) (15,948)
Provisions reversed during the year (393) (2,366) (114) (2,873)
Discontinued operations (788) (788)
Balance at August 31, 2012 6,199 3,168 950 10,317
The provisions for withholding and stamp taxes relate to contingent liabilities for withholding and stamp taxes relating to fiscal years prior
to the acquisition of the Portuguese subsidiary by the Corporation. Pursuant to the completion of the sale of the Portuguese subsidiary
(note 21), the Corporation remains responsible for these contingent liabilities up to a maximum amount of €5 million under the terms of the
sale agreement.
The provisions for programming costs include provisions for rate increases as well as additional royalties or content costs as a result of
periodical audits from service providers.
The other provisions include provisions for contractual obligations and other legal obligations.