Cogeco 2014 Annual Report Download - page 80

Consolidated financial statements COGECO CABLE INC. 2014 79
13. PROPERTY, PLANT AND EQUIPMENT
During fiscal 2014 and 2013, property, plant and equipment variations were as follows:
Years ended August 31, 2014 and 2013
Land,
buildings and
leasehold
improvements
Network
systems (1) Data centre equipment (2)
Home
terminal
devices
Rolling
stock and
equipment (3) Total
(In thousands of Canadian dollars) $ $ $ $ $ $
Cost
Balance at September 1, 2012 87,416 1,847,139 30,040 358,020 165,588 2,488,203
Acquisitions through business combinations 59,752 261,892 67,470 30,825 32,285 452,224
Other additions 35,977 227,084 45,728 (4) 45,172 35,674 389,635
Disposals and write-offs — (11,766) (2,226) (5,418) (3,269) (22,679)
Foreign currency translation adjustments 1,901 16,405 3,229 2,169 1,997 25,701
Balance at August 31, 2013 185,046 2,340,754 144,241 430,768 232,275 3,333,084
Other additions 6,936 203,881 70,338 62,502 57,189 400,846
Disposals and write-offs (121) (9,022) (4,620) (10,231) (33,725) (57,719)
Foreign currency translation adjustments 3,918 10,370 4,075 1,460 1,877 21,700
Balance at August 31, 2014 195,779 2,545,983 214,034 484,499 257,616 3,697,911
.
Accumulated depreciation and impairment losses
Balance at September 1, 2012 23,486 800,930 7,448 249,381 84,865 1,166,110
Depreciation expense 8,132 197,299 25,481 69,567 30,693 331,172
Disposals and write-offs — (10,605) (2,205) (4,223) (3,088) (20,121)
Foreign currency translation adjustments 65 963 365 224 151 1,768
Balance at August 31, 2013 31,683 988,587 31,089 314,949 112,621 1,478,929
Depreciation expense 13,287 230,381 44,654 69,198 44,945 402,465
Disposals and write-offs (11) (7,782) (4,622) (7,816) (33,502) (53,733)
Impairment — — — 3,042 32,451 35,493
Foreign currency translation adjustments 210 1,777 1,000 441 358 3,786
Balance at August 31, 2014 45,169 1,212,963 72,121 379,814 156,873 1,866,940
Carrying amounts
At August 31, 2013 153,363 1,352,167 113,152 115,819 119,654 1,854,155
At August 31, 2014 150,610 1,333,020 141,913 104,685 100,743 1,830,971
(1) Network systems includes cable towers, headends, transmitters, fibre and coaxial networks, customer drops, and network equipment.
(2) Data centre equipment includes general infrastructure, mechanical and electrical equipment, security and access control. Servers that are included as
part of the hosting product line are amortized on a straight-line basis over their expected useful life, which is three years.
(3) Rolling stock and equipment includes rolling stock, programming equipment, furniture and fixtures, computer and software and other equipments.
(4) Other additions include $937,000 of property, plant and equipment acquired through finance leases.
During the third quarter of fiscal 2014, the Corporation's subsidiary, Cogeco Cable Canada, recognized an impairment of $32.2 million of
property, plant and equipment, capitalized wages and borrowing costs related to an Internet Protocol Television ("IPTV") solution and related
projects on which its Canadian Cable services segment had worked. As a result of the unexpected performance issues encountered with
the platform, it had to be abandoned by Cogeco Cable Canada. These costs were not yet depreciated.
During the fourth quarter of fiscal 2014, the Corporation recognized in its Enterprise data services segment an impairment of $3.3 million of
property, plant and equipment related to the rationalization of its automation platforms with regard to data centre operating activities.