Cogeco 2012 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2012 Cogeco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 99

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99

Consolidated financial statements COGECO CABLE INC. 2012 79
21. DISPOSAL OF SUBSIDIARY AND DISCONTINUED OPERATIONS
On February 29, 2012, the Corporation completed the sale of its Portuguese subsidiary, Cabovisão – Televisão por Cabo, S.A.
(“Cabovisão) for a cash consideration of €45 million ($59.3 million). The selling price has been reduced by selling fees of approximately
€8.5 million ($11.2 million) and contingent claims assumed up to a maximum amount of €5 million ($6.6 million). The carrying value of the
net liabilities disposed of on February 29, 2012 was $6.7 million resulting in a gain of $48.2 million recorded in the consolidated statements
of profit or loss. Letters of credits which were previously issued to guarantee the payment by Cabovisão of stamp taxes and withholding
taxes have been also released.
The carrying value of assets and liabilities disposed were as follows:
(In thousands of Canadian dollars) $
Cash and cash equivalents 13,041
Trade and other receivables 7,693
Income taxes receivable 277
Prepaid expenses and other 2,777
Property, plant and equipment 38,931
Trade and other payables (42,514)
Provisions (6,665)
Deferred and prepaid revenue (411)
Foreign currency translation adjustment (19,817)
(6,688)
As a result of the sale and in accordance with IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations, the Corporation
reclassified the current and prior year results and cash flows of the European operations, up to the date of disposal, as discontinued
operations. The assets and liabilities of the discontinued operations have not been reclassified in the statements of financial position at
August 31, 2011 and September 1, 2010.
The profit or loss of the discontinued operations were as follows:
2012 2011
(In thousands of Canadian dollars) $$
Revenue 80,546 172,277
Operating expenses 70,247 151,262
Depreciation and amortization 2,814 40,415
Operating income (loss) 7,485 (19,400)
Financial income 155 74
Impairment of goodwill 29,344
Impairment of property, plant and equipment 196,529
Gain on disposal 48,215
Profit (loss) before income taxes 55,855 (245,199)
Income taxes 409 (463)
Profit (loss) for the year 55,446 (244,736)
The cash flows of the discontinued operations were as follows:
2012 2011
(In thousands of Canadian dollars) $$
Net cash flows from operating activities 13,637 22,667
Net cash flows from investing activities 36,826 (34,592)
Effect of exchange rate changes on cash and cash equivalents denominated
in a foreign currency (866) 588
Net increase (decrease) in cash and cash equivalents 49,597 (11,337)