Cogeco 2014 Annual Report Download - page 93

92 COGECO CABLE INC. 2014 Consolidated financial statements
The following table provides further details on trade and other receivables, net of allowance for doubtful accounts:
At August 31, 2014 2013
(In thousands of Canadian dollars) $$
Trade accounts receivable 89,522 82,292
Allowance for doubtful accounts (5,593) (3,322)
83,929 78,970
Other accounts receivable 11,585 8,015
95,514 86,985
Trade accounts receivable past due is defined as amount outstanding beyond normal credit terms and conditions for the respective customers.
A large portion of the Corporation’s customers are billed and pay before their services are rendered. The Corporation considers amount
outstanding at the due date as trade accounts receivable past due. The following table provides further details on trade accounts receivable
past due net of allowance for doubtful accounts at August 31, 2014 and 2013:
At August 31, 2014 2013
(In thousands of Canadian dollars) $$
Less than 60 days overdue 29,327 29,546
60 to 90 days overdue 1,390 1,626
More than 90 days overdue 4,260 1,732
34,977 32,904
The following table shows changes in the allowance for doubtful accounts for the year ended August 31, 2014 and 2013:
2014 2013
(In thousands of Canadian dollars) $$
Balance, beginning of the year 3,322 2,866
Provision for impaired receivables 24,592 26,658
Reversal of provision for amounts collected (4,138) (5,838)
Amounts written off as uncollectible (18,221) (20,434)
Foreign currency translation adjustments 38 70
Balance, end of the year 5,593 3,322
Liquidity risk
Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they become due. The Corporation manages
liquidity risk through the management of its capital structure and access to different capital markets. It also manages liquidity risk by
continuously monitoring actual and projected cash flows to ensure sufficient liquidity to meet its obligations when due. At August 31, 2014,
the available amount under the Corporation’s Term Revolving Facility was $617.2 million. Management believes that the committed Term
Revolving Facility will, until its maturity in January 2019, provide sufficient liquidity to manage its long-term debt maturities and support
working capital requirements. Two subsidiaries of the Corporation also benefit from a Revolving Facility of US$150 million of which US$98.8
million ($107.4 million) was available at August 31, 2014.
The following table summarizes the contractual maturities of the financial liabilities and related capital amounts at August 31, 2014:
Contractual cash flows
(In thousands of Canadian dollars)
Carrying
amount
$2015
$2016 $2017 $2018 $2019 $Thereafter $Total $
Trade and other payables(1) 283,952 283,952 — — — — — 283,952
Long-term debt(2) 2,717,705 31,757 239,994 35,845 255,230 242,150 1,943,673 2,748,649
Derivative financial instruments (6,132) — (4,712) — — — — (4,712)
Finance leases(3) 809 566 — — — — — 566
2,996,334 316,275 235,282 35,845 255,230 242,150 1,943,673 3,028,455
(1) Excluding accrued interest on long-term debt.
(2) Principal excluding finance leases.
(3) Including interest.