Cogeco 2015 Annual Report Download - page 80

Consolidated financial statements COGECO CABLE INC. 2015 79
The following table shows deferred income taxes resulting from temporary differences between the carrying amounts of assets and liabilities
for accounting purposes and the amounts used for tax purposes, as well as tax losses carryforwards:
At August 31, 2015 2014
(In thousands of Canadian dollars) $$
Property, plant and equipment (169,710) (151,343)
Intangible assets (456,822) (399,897)
Deferred and prepaid revenue 9,683 6,482
Partnerships income (20,710) (37,077)
Non-capital losses and other tax credits carryforwards, net of unrecognized benefits related to tax losses 139,609 113,054
Other (4,158) (2,390)
Net deferred tax liabilities (502,108) (471,171)
Financial statement presentation:
Deferred tax assets 12,086 12,884
Deferred tax liabilities (514,194) (484,595)
Net deferred tax liabilities (502,108) (471,711)
The movements in deferred tax asset and liability balances during fiscal 2015 and 2014 were as follows:
Year ended August 31, 2015
Balance
beginning of
the year Recognized in profit or loss
Recognized in
other
comprehensive
income
Foreign
currency
translation
adjustments Balance end of the year
(In thousands of Canadian dollars) $ $ $ $ $
Property, plant and equipment (151,343) (2,327) — (16,040) (169,710)
Intangible assets (399,897) (5,848) — (51,077) (456,822)
Deferred and prepaid revenue 6,482 2,553 — 648 9,683
Partnerships income (37,077) 16,367 — — (20,710)
Non-capital losses and other tax credits
carryforwards, net of unrecognized benefits
related to tax losses 113,054 4,634 — 21,921 139,609
Other (2,930) (1,582) (321) 675 (4,158)
(471,711) 13,797 (321) (43,873) (502,108)
Year ended August 31, 2014
Balance
beginning of
the year Recognized in profit or loss
Recognized in
other
comprehensive
income
Foreign
currency
translation
adjustments Balance end of the year
(In thousands of Canadian dollars) $ $ $ $ $
Property, plant and equipment (168,088) 19,206 — (2,461) (151,343)
Intangible assets (385,513) (6,808) — (7,576) (399,897)
Deferred and prepaid revenue 4,735 1,643 — 104 6,482
Partnerships income (53,629) 16,552 — — (37,077)
Non-capital losses and other tax credits carryforwards,
net of unrecognized benefits related to tax losses 108,345 999 — 3,710 113,054
Other (683) (2,024) (177) (46) (2,930)
(494,833) 29,568 (177) (6,269) (471,711)
At August 31, 2015, the Corporation and its subsidiaries had accumulated federal income tax losses, the benefits of which have been
recognized in these financial statements. These losses expire as follows:
2024 2025 2026 Thereafter Total
(In thousands of Canadian dollars) $$ $ $ $
Canada — — — 25,966 25,966
United States 28,484 53,507 72,607 170,834 325,432
United Kingdom(1) — — — 33,512 33,512
28,484 53,507 72,607 230,312 384,910
(1) Net tax losses in United Kingdom can be carried forward indefinitely to offset against profit of the same enterprise.
The Corporation and its subsidiaries had also accumulated capital losses amounting to $653.4 million, the benefits of which have not been
recognized in these consolidated financial statements. These losses can be carried forward indefinitely against capital gain.