Cogeco 2014 Annual Report Download - page 97

96 COGECO CABLE INC. 2014 Consolidated financial statements
B) COMPENSATION OF KEY MANAGEMENT PERSONNEL
Key management personnel are comprised of the members of the Board and of the Management Committee of the Corporation. The
compensation paid or payable to key management personnel for employee services is as follows:
Years ended August 31, 2014 2013
(In thousands of Canadian dollars) $$
Salaries and other short-term employee benefits 3,718 4,926
Post-employment benefits 980 680
Share-based payments 2,042 1,960
6,740 7,566
23. COMMITMENTS, CONTINGENCIES AND GUARANTEES
A) COMMITMENTS
At August 31, 2014, the Corporation and its subsidiaries are committed under operating lease agreements and other long-term contracts to
make annual payments as follows:
2015 2016 2017 2018 2019 Thereafter
(In thousands of Canadian dollars) $$$ $ $ $
Operating lease agreements(1) 33,244 30,578 27,695 26,347 23,837 72,417
Acquisition of property, plant and equipment(3) 4,501 2,435 — 544 — 17,614
Other long-term contracts(2) 16,183 4,706 3,839 3,577 750 —
53,928 37,719 31,534 30,468 24,587 90,031
(1) Include operating lease agreements for rent premises and support structures.
(2) Include minimum spend commitments under acquisitions of home terminal devices and software licenses
(3) Include long-term commitments with suppliers to provide services including minimum spend commitments.
B) CONTINGENCIES
The Corporation and its subsidiaries are involved in matters involving litigation or potential claims from suppliers arising out of the ordinary
course and conduct of its business. Although such matters cannot be predicted with certainty, management does not consider the Corporation's
exposure to litigation to be significant to these consolidated financial statements.
C) GUARANTEES
In the normal course of business, the Corporation enters into agreements containing features that meet the criteria of a guarantee including
the following:
Business combinations and asset disposals
In connection with the acquisition or sale of a business or assets, in addition to possible indemnification relating to failure to perform covenants
and breach of representations and warranties, the Corporation has agreed to indemnify the seller or the purchaser against claims related
to events that occurred prior to the date of acquisition or sale. The term and amount of such indemnification will in certain circumstances be
limited by the agreement. The nature of these indemnification agreements prevents the Corporation from estimating the maximum potential
liability required to be paid to guaranteed parties. In management's opinion, the likelihood that a significant liability will be incurred under
these obligations is low. The Corporation has purchased directors' and officers' liability insurance with a deductible per loss. At August 31,
2014 and 2013, no liability has been recorded with respect to these indemnifications, except for those disclosed in Note 15.
Long-term debt
Under the terms of the Senior Secured Notes and Senior Unsecured Notes, the Corporation has agreed to indemnify the other parties against
changes in regulations relative to withholding taxes and costs incurred by the lenders due to changes in laws. These indemnifications extend
for the term of the related financings and do not provide any limit on the maximum potential liability. The nature of the indemnification
agreement prevents the Corporation from estimating the maximum potential liability it could be required to pay. At August 31, 2014 and 2013,
no liability has been recorded with respect to these indemnifications.