Shaw 2009 Annual Report Download - page 80

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10. DEFERRED CREDITS
Amount
$
Accumulated
amortization
$
Net book
value
$
Amount
$
Accumulated
amortization
$
Net book
value
$
2009 2008
IRU prepayments 629,119 106,705 522,414 629,119 94,158 534,961
Equipment revenue 406,609 280,598 126,011 392,458 252,027 140,431
Connection fee and installation revenue 23,619 17,560 6,059 33,247 24,403 8,844
Deposit on future fibre sale 2,000 – 2,000 2,000 – 2,000
Other 2,589 – 2,589 1,600 – 1,600
1,063,936 404,863 659,073 1,058,424 370,588 687,836
Amortization of deferred credits for 2009 amounted to $153,168 (2008 – $150,366; 2007 –
$132,819) and was recorded in the accounts as described below.
IRU agreements are in place for periods ranging from 21 to 60 years and are being amortized to
income over the agreement periods. Amortization in respect of the IRU agreements for 2009
amounted to $12,547 (2008 – $12,547; 2007 – $12,547). Amortization of equipment revenue
for 2009 amounted to $132,974 (2008 – $126,601; 2007 – $104,997). Amortization of
connection fee and installation revenue for 2009 amounted to $7,647 (2008 – $11,218;
2007 – $14,250) and was recorded as service revenue. In 2007, amortization of $1,025, in
respect of a fair value adjustment on debt and bond forward proceeds, was offset against interest
expense.
11. SHARE CAPITAL
Authorized
The Company is authorized to issue a limited number of Class A voting participating shares
(“Class A Shares”) of no par value, as described below, an unlimited number of Class B non-voting
participating shares (“Class B Non-Voting Shares”) of no par value, Class 1 preferred shares,
Class 2 preferred shares, Class A preferred shares and Class B preferred shares.
The authorized number of Class A Shares is limited, subject to certain exceptions, to the lesser of
that number of shares (i) currently issued and outstanding and (ii) that may be outstanding after any
conversion of Class A Shares into Class B Non-Voting Shares.
2009 2008
2009
$
2008
$
Number of securities
22,520,064 22,550,064 Class A Shares 2,468 2,471
407,717,782 405,882,652 Class B Non-Voting Shares 2,111,381 2,060,960
430,237,846 428,432,716 2,113,849 2,063,431
Class A Shares and Class B Non-Voting Shares
Class A Shares are convertible at any time into an equivalent number of Class B Non-Voting Shares.
In the event that a take-over bid is made for Class A Shares, in certain circumstances, the Class B
Non-Voting Shares are convertible into an equivalent number of Class A Shares.
76
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]