Cogeco 2015 Annual Report Download - page 79

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78 COGECO CABLE INC. 2015 Consolidated financial statements
8. DEPRECIATION AND AMORTIZATION
Years ended August 31, 2015 2014
(In thousands of Canadian dollars) $$
Depreciation of property, plant and equipment 403,023 402,465
Amortization of intangible assets 63,692 57,817
466,715 460,282
9. FINANCIAL EXPENSE
Years ended August 31, 2015 2014
(In thousands of Canadian dollars) $$
Interest on long-term debt 131,740 126,405
Net foreign exchange losses (gains) 893 (450)
Amortization of deferred transaction costs 2,282 1,782
Capitalized borrowing costs (1) (468) (1,683)
Other 7,615 4,167
142,062 130,221
(1) For the years ended August 31, 2015 and 2014, the weighted average interest rate used in the capitalization of borrowing costs was 4.5%.
10. INCOME TAXES
Years ended August 31, 2015 2014
(In thousands of Canadian dollars) $$
Current 91,230 82,752
Deferred (13,797) (29,568)
77,433 53,184
The following table provides the reconciliation between income tax expense at the Canadian statutory federal and provincial income tax
rates and the consolidated income tax expense:
Years ended August 31, 2015 2014
(in thousands of Canadian dollars) $$
Profit before income taxes 335,183 262,625
Combined Canadian income tax rate 26.58% 26.65%
Income taxes at combined Canadian income tax rate 89,092 69,990
Adjustment for losses or profit subject to lower or higher tax rates 5,677 531
Income taxes arising from non-deductible expenses 2,423 1,345
Tax impacts related to foreign operations (18,287) (17,929)
Other (1,472) (753)
Income taxes at effective income tax rate 77,433 53,184