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5. Financial expenses
-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods ended March 31---------------------------------------------------------------------------- 2012 (restated, 2013 note 2)----------------------------------------------------------------------------Interest on long-term debt $ 1,122 $ 1,416Amortization of financing costs 51 101Interest on net defined benefit liability 420 463Other 11 6---------------------------------------------------------------------------- $ 1,604 $ 1,986--------------------------------------------------------------------------------------------------------------------------------------------------------
6. Operational restructuring costs, impairment of assets and other costs
In the three-month period ended March 31, 2013, the Corporation recorded operational restructuring costs in the amount of $565,000 for legal expenses in connection with a trial related to a legal dispute involving a former subsidiary. The Corporation also recorded a $387,000 impairment charge related to its non-current distribution rights inventory following its decision to discontinue theatrical distribution of new Quebec films.
In the three-month period ended March 31, 2012, the Corporation recorded $117,000 in operational restructuring costs following the elimination of positions in the Publishing segment.
7. Impairment of goodwill
During the three-month period ended March 31, 2012, following the adoption of new rates for business contributions toward the costs of waste recovery services provided by Quebec municipalities, the Corporation had to review its business plan for the related activities and perform an impairment test on the Publishing cash-generating unit ("CGU"). The Corporation concluded that the recoverable amount based on value in use was less than the carrying amount of the Publishing CGU and a goodwill impairment charge of $32,200,000 was recorded. The Corporation used a pre-tax discount rate of 16.26% (15.89% as of April 1, 2011) and a perpetual growth rate of 1.00% (1.00% as of April 1, 2011) to calculate the recoverable amount.
8. Capital stock
(a) Authorized capital stock
An unlimited number of Class A common shares, participating, voting, withoutpar value.An unlimited number of Class B shares, participating, non-voting, withoutpar value.An unlimited number of preferred shares, non-participating, non-voting, witha par value of $10 each, issuable in series.
(b) Issued and outstanding capital stock
-------------------------------------------------------------------------------------------------------------------------------------------------------- December 31, March 31, 2013 2012----------------------------------------------------------------------------4,320,000 Class A Common Shares $ 72 $ 7219,450,906 Class B shares 98,575 98,575---------------------------------------------------------------------------- $ 98,647 $ 98,647--------------------------------------------------------------------------------------------------------------------------------------------------------
