50 ANNUAL REPORT 2012 Amortization of intangible assets is included in the depreciation and amortization expense line item on the consolidated statements of income Concession rights Existing and New Quito Airports The Company holds a 423 effective economic interest in Corporacion Quiport SA Quiport JV an Ecuadorian company whose main operations consist of a managing and operating the existing Mariscal Sucre International Airport the Existing Quito Airport until its operations are transferred to a new airport and b the development fnancing construction operation and maintenance of the new Quito International Airport New Quito Airport under a concession arrangement with Corporacion Aeropuerto y Zona Franca del Distrito Metropolitano de Quito CORPAQ Under the concession contract with CORPAQ Quiport JV was awarded a 35year concession from January 27 2006 Once the concession period expires all the facilities will be returned to CORPAQ Income earned from operating the Existing Quito Airport must be reinvested in the New Quito Airport The right to operate the Existing Quito Airport was initially recognized at fair value and the Companys proportionate share of this concession right was assigned a value of 64000 at the date of fnancial close in 2006 At December 31 2012 this concession right is fully amortized carrying amount December 31 2011 2921 At December 31 2012 the concession right for the New Quito Airport representing the Companys proportionate share of the costs to construct the New Quito Airport had a carrying amount of 364052 December 31 2011 304331 Amortization of this concession right will commence following the opening of the New Quito Airport which occurred on February 20 2013 Goodwill The following cashgenerating units CGUs or groups of CGUs have signifcant amounts of goodwill allocated to them for the purposes of impairment testing December 31 December 31 2012 2011 CashGenerating Unit Social Infrastructure Contracting 17192 17192 Transportation 14063 14063 Industrial West 9879 9879 Other 12649 12649 53783 53783 The recoverable amounts of the above listed CGUs were determined based on fair value less costs to sell calculations Fair value less costs to sell calculations use posttax cash fow projections expected to be generated by the CGU based on fnancial budgets approved by management covering a twoyear period For the CGUs noted above cash fows beyond the twoyear period were extrapolated at December 31 2012 using a growth rate of 2 which does not exceed the longterm average growth rate for the business in which the CGUs operate The discount rate applied to cash fow projections at December 31 2012 was approximately 9 based on the Companys posttax weighted average cost of capital Budgeted cash fows were determined by management based on the Companys past performance backlog currently on hand and future growth prospects 15 BANK INDEBTEDNESS Bank indebtedness as at December 31 2012 of 10368 December 31 2011 nil represents borrowings on the Companys operating line of credit On August 3 2012 Aecon amended its 262500 credit facility which was due to expire in May 2014 The committed facility was increased to 300000 and now expires on the earlier of August 3 2016 or four months prior to the maturity date of any convertible debentures if certain conditions are not satisfed Under the amended agreement the Company has the right subject to receiving additional lending commitments to increase the amount available under the credit agreement by 150000 Letters of credit amounting to 54952 were issued against the credit facility as at December 31 2012 Cash drawings under the facility bear interest at rates ranging from prime plus 010 to prime plus 035 per annum Drawings on the facility are secured by a general security agreement which provides the lenders with a frst priority ranking security interest subject to existing encumbrances over certain existing and future assets of the Company Security is also provided by way of a 90000 collateral mortgage subject to existing encumbrances over certain aggregate properties owned by the Company and by guarantees from all entities that are required to provide security under the general security agreement The Company also maintains two additional letters of credit facilities a 150000 domestic facility and a US15000 international facility provided by Export Development Canada of which 124573 was utilized as at December 31 2012 16 TRADE AND OTHER PAYABLES December 31 December 31 2012 2011 Trade payables and accrued liabilities 547076 437965 Holdbacks payable 84778 98532 631854 536497 Amounts payable beyond one year 4909 5894 NOTES TO THE CONSOLIDA TED FINANCIAL ST A TEMENTS DECEMBER 31 2012 AND 2011 IN THOUSANDS OF CANADIAN DOLLARS EXCEPT PER SHARE AMOUNTS