## Interest Expense 

Interest expense increased from $16.8 million in 1998 to $27.0 million in 1999, an increase of 60.7%. Interest expense has been allocated to Corus based on an average debt of $300 million in 1999 and an average debt of $187 million in 1998, at Shaw’s average cost of borrowing of 9%. 

## Asset Writedown 

In 1998 Corus recorded a $22.3 million writedown in the carrying value of the invest- ment in Liberty Digital Inc. due to prolonged periods of the carrying value being in excess of market value. 

## Other Revenue 

Other revenue consists of interest and dividend income received from investments. Other revenue was $2.0 million in 1999, compared to $2.9 million in 1998, a decrease of 31%. The decrease was a result of WIC suspending dividend payments in the second quarter of fiscal 1999. 

## Income Taxes 

Income tax expense in fiscal 1999 of $4.7 million was comprised of current income tax expense of $7.0 million and future income tax recovery of $2.3 million. This repre- sented 44% of income before income taxes. The difference from the statutory tax rate of approximately 45% related to dividend income which is not taxable of $0.9 million, offset by depreciation and amortization on amounts assigned to capital assets on business acquisitions not deductible for tax purposes of $0.8 million. 

## Equity Earnings from Investees 

Equity earnings from investees increased $1.1 million or 275% to $1.5 million in fiscal 1999 from $0.4 million in fiscal 1998. This increase was primarily a result of improved earnings from TELETOON. 

## Net Income (Loss) 

Net income of Corus increased $11.7 million to $7.4 million in fiscal 1999 from a net loss of $4.3 million in fiscal 1998, as a result of the reasons noted above. 

