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The recoverable amount was determined by discounting the future cash flows to be generated from the continuing operations of each cash generating unit, to which goodwill has been allocated. . For both the Canadian and International operations the recoverable amount was in excess of the carrying amount attributable to each cash generating unit. No impairment was recorded relating to the year ended December 31, 2012 (2011 - no impairment).
NOTE 10 - TRADE AND OTHER PAYABLES
December 31, December 31, December 31,(Stated in thousands) 2012 2011----------------------------------------------------------------------------Trade payables 112,141 167,692Accrued liabilities 55,603 78,693Dividend payable 21,968 7,346Finance lease obligations 13,275 8,828Other payables 25,801 25,130----------------------------------------------------------------------------Total trade and other payables $228,788 $287,689----------------------------------------------------------------------------
The Company's exposure to currency and liquidity risk related to trade and other payables is disclosed in note 16.
NOTE 11 - LOANS AND BORROWINGS
Bank loans
The Company's Russian subsidiary has a U.S. $20 million (Canadian equivalent of $19.9 million) demand revolving facility with a large international bank. This facility is unsecured, bears interest at LIBOR plus a premium, as determined by the bank, plus 2.75% and has been guaranteed by the Company. As at December 31, 2012, the amount drawn from this facility was $9.1 million (December 31, 2011 - nil).
Long term debt
December 31, December 31,(Stated in thousands) 2012 2011----------------------------------------------------------------------------Notes payable $430,408 $412,646Finance lease obligations 36,324 26,766Revolving credit facilities 255,693 -Hedge receivable (5,059) (4,903)---------------------------------------------------------------------------- Total $717,366 $434,509Current portion of finance lease obligations (1) 13,275 8,828Russian demand revolving credit facility 9,119 -Current portion of long-term debt - 25,425----------------------------------------------------------------------------Non-current $694,972 $400,256--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Current portion of finance lease obligations is included in trade and other payables.
NOTE 17 - CAPITAL MANAGEMENT
The Company's strategy is to carry a capital base to maintain investor, creditor and market confidence and to sustain future development of the business. The Company seeks to maintain a balance between the level of long-term debt and shareholders' equity to ensure access to capital markets to fund growth and working capital given the cyclical nature of the oilfield services sector. On a historical basis, the Company maintained and continues to maintain a conservative ratio of long-term debt to total capitalization. The Company may occasionally need to increase these levels to facilitate acquisition or expansionary activities.
