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Consolidated financial statements COGECO CABLE INC. 2012 71
the stock market. These shares were purchased for cash consideration aggregating $3,049,000 ($2,368,000 in 2011) and are held in trust
for the participants until they are fully vested. The Trust, considered as a special purpose entity, is consolidated in the Corporation’s
financial statements with the value of the acquired shares presented as subordinate voting shares held in trust under the ISU Plan in
reduction of share capital. A compensation expense of $1,391,000 ($1,305,000 in 2011) was recorded for the year ended August 31, 2012
related to this plan.
Under the ISU Plan, the following ISUs were granted by the Corporation and are outstanding at August 31:
2012 2011
Outstanding, beginning of the year 105,064 57,409
Granted 60,479 61,724
Distributed (2,000) (13,184)
Forfeited (13,741) (885)
Outstanding, end of the year 149,802 105,064
DSU plan
The Corporation also offers a DSU Plan for members of the Board of Directors to assist in the attraction and retention of qualified
individuals to serve on the Board of Directors (“Board”) of the Corporation. Each existing or new member of the Board may elect to be paid
a percentage of the annual retainer in the form of deferred share units (“DSUs”) with the balance, if any, being paid in cash. The number of
DSUs that a member is entitled to receive is based on the average closing price of the subordinate shares on the Toronto Stock Exchange
for the twenty consecutive trading days immediately preceding the date preceding by one day the date of grant. Dividend equivalents are
awarded with respect to DSUs in a member’s account on the same basis as if the member was a shareholder of record of subordinate
shares on the relevant record date, and the dividend equivalents are credited to the individual’s account as additional DSUs. DSUs are
redeemable upon an individual ceasing to be a member of the Board or in the event of the death of the member. For the year ended
August 31, 2012, the Corporation issued 4,446 (4,521 in 2011) DSUs to the participants in connection with the DSU Plan. A reduction of
expense of $65,000 (compensation expense of $337,000 in 2011) was recorded for the year ended August 31, 2012 for the liability related
to this plan.
Under the DSU Plan, the following DSUs were issued by the Corporation and are outstanding at August 31:
2012 2011
Outstanding, beginning of the year 15,608 10,855
Issued 4,446 4,521
Dividend equivalents 437 232
Outstanding, end of the year 20,491 15,608
17. ACCUMULATED OTHER COMPREHENSIVE INCOME
Cash flo
w
hedges
Foreign
currenc
y
translation Total
(In thousands of Canadian dollars) $ $ $
Balance at September 1, 2010 2,920 17,217 20,137
Other comprehensive income (loss) (928) 3,345 2,417
Balance at August 31, 2011 1,992 20,562 22,554
Other comprehensive income (loss) 1,113 (20,562) (19,449)
Balance at August 31, 2012 3,105 3,105