Cogeco 2015 Annual Report Download - page 26

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MD&A COGECO CABLE INC. 2015 25
The acquisition was accounted for using the purchase method. The preliminary allocation of the purchase price of MetroCast Connecticut is as
follows, pending the finalization of the determination of the fair value of the net assets acquired:
(in thousands of dollars) $
Consideration
Paid
Purchase price 261,600
Working capital adjustments 1,640
263,240
Net assets acquired
Trade and other receivables 616
Prepaid expenses and other 1,696
Property, plant and equipment 51,368
Intangible assets 108,564
Goodwill 101,685
Trade and other payables assumed (689)
263,240
ACQUISITIONS OF PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE AND OTHER
ASSETS
Investing activities, including acquisition of property, plant and equipment segmented according to the National Cable Television Association
(“NCTA”) standard reporting categories, are as follows:
Years ended August 31, 2015 2014
(in thousands of dollars) $$
Customer premise equipment(1) 141,033 111,828
Scalable infrastructure(2) 69,901 90,190
Line extensions 53,268 28,507
Upgrade / Rebuild 17,068 26,560
Support capital 31,729 28,954
Acquisition of property, plant and equipment - Canadian and American cable services 312,999 286,039
Acquisition of property, plant and equipment - Enterprise data services 109,951 114,807
Acquisitions of property, plant and equipment 422,950 400,846
Acquisition of intangible and other assets - Canadian and American cable services 13,802 11,348
Acquisition of intangible and other assets - Enterprise data services 2,468 3,278
Acquisitions of intangible and other assets 16,270 14,626
439,220 415,472
(1) Includes mainly home terminal devices as well as new and replacement drops.
(2) Includes mainly head-end equipment, digital video and telephony transport as well as Internet equipment.
For the year ended August 31, 2015, acquisition of property, plant and equipment amounted to $423.0 million compared to $400.8 million for
fiscal 2014.
Fiscal 2015 acquisition of intangible and other assets amounted to $16.3 million compared to $14.6 million for last year.
CANADIAN CABLE SERVICES SEGMENT
• Fiscal 2015 acquisitions of property, plant and equipment amounted to $237.0 million compared to $214.4 million for fiscal 2014. The
increase in acquisition of property, plant and equipment was mainly due to additional customer premise equipment for the launch of
TiVo digital advanced video services on November 3, 2014 in Ontario and on March 30, 2015 in Québec, the increase in line extensions
to extend and improve network capacity in the areas served as well as the appreciation of the US dollar over the Canadian dollar
compared to last year, partly offset by capital expenditures decreases due to the timing of certain initiatives;
• Acquisitions of intangible and other assets amounted to $11.0 million compared to $9.5 million for fiscal 2014 as a result of higher
reconnect activities; and
• Fiscal 2015 capital intensity reached 19.6% compared to 17.8% in fiscal 2014 as a result of higher acquisitions of property, plant and
equipment, intangible and other assets.