Shaw 2009 Annual Report Download - page 52

IV. FINANCIAL POSITION
Total assets at August 31, 2009 were $8.9 billion compared to $8.4 billion at August 31, 2008.
Following is a discussion of significant changes in the consolidated balance sheet since August 31,
2008.
Current assets increased $353.2 million due to increases in cash and short-term securities of
$453.2 million, accounts receivable of $6.3 million and prepaids of $8.4 million partially offset by
a decrease in future income taxes of $115.3 million. Cash and short-term securities were up due to
excess funds from the March 2009 $600 million senior note issuance. Prepaids increased due to
timing of payments for certain expenditures while accounts receivable were up due to subscriber
growth and rate increases. Future income taxes declined due to the use of non-capital loss
carryforwards.
Property, plant and equipment increased $205.0 million as current year capital investment
exceeded amortization.
Deferred charges decreased by $14.9 million due to a decrease in deferred equipment costs of
$18.4 million.
Broadcast rights increased $40.1 million due to the acquisition of the Campbell River cable system
in British Columbia.
Current liabilities (excluding current portion of long-term debt and derivative instruments)
decreased $104.6 million due to decreases in bank indebtedness of $44.2 million and accounts
payable of $92.6 million partially offset by increases in income taxes payable of $22.9 million and
unearned revenue of $9.4 million. Accounts payable and accrued liabilities declined due to funding
the remaining amount owing in respect of wireless spectrum licenses partially offset by increases in
trade payables and other accruals including CRTC Part II fees. Income taxes payable increased due
to the Company becoming cash taxable in the current year and unearned revenue increased due to
customer growth and rate increases.
Total long-term debt increased $443.4 million as a result of $593.6 million in net proceeds on the
March 2009 Senior note issuance and an increase of $31.8 million relating to the translation of
hedged US denominated debt partially offset by the early redemption of the Videon CableSystems
Inc. Cdn $130 million senior debentures and repayment of bank borrowings of $55.0 million. The
current portion of long-term debt increased due to the US $440 million senior notes due in April
2010.
Other long-term liability was higher due to the current year defined benefit pension plan expense.
Derivative instruments (including current portion) decreased $54.6 million of which $31.8 million
was in respect of the foreign exchange gain on the notional amounts of the derivatives relating to
hedges on long-term debt. Current derivative instruments increased by $171.7 million primarily
due to the cross-currency interest rate exchange agreement in respect of the aforementioned US
$440 million Senior notes due in April 2010.
Deferred credits decreased $28.8 million due to a decrease in deferred equipment revenue of
$14.4 million and amortization of deferred IRU revenue of $12.5 million.
Future income taxes increased $55.9 million due to the current year future income tax expense
partially offset by an income tax recovery related to reductions in corporate income tax rates.
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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009