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84 COGECO CABLE INC. 2015 Consolidated financial statements
The following table presents, for each operating segment, the change in the pre-tax discount rate and in the perpetual growth rate used for
the tests performed that would have been required in order for the recoverable amount to equal the carrying value of the CGU at August 31,
2015:
Increase in
pre-tax discount rate Decrease in
perpetual growth rate
Operating segment % %
Canadian cable services 4.1 to 5.5 3.9 to 5.8
American cable services 2.3 to 5.2 5.3 to 7.5
Enterprise data services 0.3 0.1
— —
15. PROVISIONS
During fiscal 2015, provisions variations were as follows:
Year ended August 31, 2015
Withholding
and
stamp taxes
Programming
and content
costs Restructuring
costs Other Total
(In thousands of Canadian dollars) $$$$$
Balance, beginning of the year 7,144 3,983 238 4,622 15,987
Provisions made during the year — 1,850 4,776 6,305 12,931
Provisions used during the year (339) (1,404) (3,654) (333)(5,730)
Provisions reversed during the year — — (79) — (79)
Foreign currency translation adjustments 235 218 96 122 671
Balance, end of the year 7,040 4,647 1,377 10,716 23,780
The provisions for withholding and stamp taxes relate to contingent liabilities for withholding and stamp taxes relating to fiscal years prior
to the acquisition of a Portuguese subsidiary by the Corporation. Pursuant to the completion of the sale of the Portuguese subsidiary in
2012, the Corporation remains responsible for these contingent liabilities up to a maximum amount of €5 million under the terms of the sale
agreement.
The provisions for programming and content costs include provisions for retroactive rate increases as well as additional royalties or content
costs as a result of periodical audits from service providers.
The other provisions include provisions for contractual obligations and other legal obligations.