Shaw 2010 Annual Report Download - page 104

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(5) Consolidated capital expenditures include the Company’s proportionate share of the Burrard Landing Lot
2 Holdings Partnership (the “Partnership”) capital expenditures which the Company is required to
proportionately consolidate. As the Partnership’s operations are self funded, the Partnership’s capital
expenditures are subtracted from the calculation of segmented capital expenditures and equipment
costs (net).
(6) 2010 includes the impact of a one-time CRTC Part II fee recovery of $48,662 for Cable and $26,570 for
combined satellite.
16. COMMITMENTS AND CONTINGENCIES
Commitments
(i) During prior years, the Company, through its subsidiaries, purchased 28 Ku-band
transponders on the Anik F1 satellite and 18 Ku-band transponders on the Anik F2 satellite
from Telesat Canada. During 2006, the Company’s traffic on the Anik F1 was transferred to
the Anik F1R under a capacity services arrangement which has all of the same substantive
benefits and obligations as on Anik F1. In addition, the Company leases a number of C-band
and Ku-band transponders. Under the Ku-band F1 and F2 transponder purchase agreements,
the Company is committed to paying an annual transponder maintenance fee for each
transponder acquired from the time the satellite becomes operational for a period of 15 years.
(ii) The Company has various long-term commitments of which the majority are for the
maintenance and lease of satellite transponders, program related agreements, lease of
transmission facilities, and lease of premises as follows:
$
2011 202,436
2012 199,033
2013 220,969
2014 231,099
2015 231,103
Thereafter 557,155
1,641,795
Included in operating, general and administrative expenses are transponder maintenance expenses
of $58,369 (2009 – $58,343; 2008 – $58,280) and rental expenses of $66,987 (2009 –
$67,663; 2008 – $66,118).
(iii) At August 31, 2010, the Company had capital expenditure commitments of approximately
$85,000 over the next four years.
Contingencies
The Company and its subsidiaries are involved in litigation matters arising in the ordinary course
and conduct of its business. Although resolution of such matters cannot be predicted with certainty,
management does not consider the Company’s exposure to litigation to be material to these
consolidated financial statements.
100
Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2010, 2009 and 2008
[all amounts in thousands of Canadian dollars except share and per share amounts]