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70 COGECO CABLE INC. 2013 Consolidated financial statements
6. OPERATING EXPENSES
Years ended August 31, 2013 2012
(In thousands of Canadian dollars) $$
Salaries, employee benefits and outsourced services 279,044 202,192
Service delivery costs(1) 483,709 365,776
Customer related costs(2) 59,779 43,577
Other external purchases(3) 79,842 67,616
902,374 679,161
(1) Includes cost of equipment sold, content and programming costs, payments to other carriers, data centre expenses, franchise fees and network costs.
(2) Includes advertising and marketing expenses, selling costs, billing expenses, bad debts and collection expenses.
(3) Includes office building expenses, professional service fees, Canadian Radio-television and Telecommunications Commission (“CRTC”) fees and other
administrative expenses.
7. DEPRECIATION AND AMORTIZATION
Years ended August 31, 2013 2012
(In thousands of Canadian dollars) $$
Property, plant and equipment 331,172 254,597
Intangible assets 51,542 20,406
382,714 275,003
8. FINANCIAL EXPENSE
Years ended August 31, 2013 2012
(In thousands of Canadian dollars) $$
Interest on long-term debt 124,037 61,052
Net foreign exchange losses 1,903 121
Amortization of deferred transaction costs 2,852 1,596
Capitalized borrowing costs (1) (3,866) (1,873)
Other 3,388 3,111
128,314 64,007
(1) For the years ended August 31, 2013 and 2012, the weighted average interest rate used in the capitalization of borrowing costs was 6%.
9. INCOME TAXES
Years ended August 31, 2013 2012
(In thousands of Canadian dollars) $$
Current 84,676 85,216
Deferred (21,834) (6,560)
62,842 78,656