Shaw 2009 Annual Report Download - page 108

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(d) Recent accounting pronouncements
Business Combinations
Effective September 1, 2009, the Company will adopt SFAS 141R “Business Combinations”. This
revised statement requires assets and liabilities acquired in a business combination, contingent
consideration, and certain acquired contingencies to be measured at their fair values as of the date
of acquisition. In addition, acquisition-related and restructuring costs are to be recognized
separately from business combinations, generally as expenses.
23. COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS
Certain of the comparative figures have been reclassified to conform to the presentation adopted in
the current year.
24. SUBSEQUENT EVENTS
Subsequent events have been evaluated through to November 30, 2009 which is the date the
consolidated financial statements were issued.
Late in fiscal 2008 the Company participated in the Canadian Advanced Wireless Spectrum
(“AWS”) auction and was successful in acquiring 20 megahertz of spectrum across most of its cable
footprint for a cost of $190,912. In early September 2009, the Company received its ownership
compliance decision from Industry Canada and was granted its AWS licenses.
In September 2009, the Company announced its intention to redeem all of its outstanding US
$440,000 8.25% senior notes due April 11, 2010 and US $225,000 7.25% senior notes due
April 6, 2011. The redemption date was October 13, 2009. On October 2, 2009, the Company
announced its intention to redeem all of its outstanding US $300,000 7.20% senior notes due
December 15, 2011. The redemption date was October 20, 2009. In conjunction with the
redemption of the US senior notes, the Company unwound and settled a portion of the principal
component of two of the associated cross-currency interest rate swaps. The Company
simultaneously entered into offsetting currency swap transactions for the outstanding notional
principal amounts under all the remaining cross-currency interest rate swap agreements.
Pursuant to the short form base shelf prospectus filed on March 11, 2009, on October 1, 2009, the
Company issued $1,250,000 of senior notes at a rate of 5.65% due 2019. Estimated net proceeds
(after issuance at a discount of $3,960 and issue and underwriting expenses) of $1,240,000 were
used for the aforementioned notes redemptions.
On October 7, 2009, the Government of Canada and members of the broadcasting industry that are
required to pay Part II license fees announced they had entered into an agreement on the Part II
license fee issue. The agreement has resulted in the government agreeing that it will not seek Part II
license fees for the past three years that were not collected due to the ongoing legal dispute. In
return, members of the broadcasting industry, including the Company, discontinued their appeal
before the Supreme Court of Canada challenging the validity of the fees. Under the settlement, the
government is also recommending that the CRTC develop a new forward-looking regime that would
be capped at $100,000 per year, indexed to inflation. In October 2009 the Company recorded a
recovery of approximately $52,000 after taxes for the Part II license fees that had been accrued for
the past three years and will not be collected by the government.
104
Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2009, 2008 and 2007
[all amounts in thousands of Canadian dollars except share and per share amounts]