Shaw 2010 Annual Report Download - page 117

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(iv) Non-cash transactions
The Consolidated Statements of Cash Flows exclude the following non-cash transactions:
2010
$
2009
$
2008
$
Class B Non-Voting Shares issued on an acquisition [note 2] 120,000 ––
21. CAPITAL STRUCTURE MANAGEMENT
The Company’s objectives when managing capital are:
(i) to maintain a capital structure which optimizes the cost of capital, provides flexibility and
diversity of funding sources and timing of debt maturities, and adequate anticipated liquidity
for organic growth and strategic acquisitions;
(ii) to maintain compliance with debt covenants; and
(iii) to manage a strong and efficient capital base to maintain investor, creditor and market
confidence.
The Company defines capital as comprising all components of shareholders’ equity (other than
amounts in accumulated other comprehensive income/loss), long-term debt (including the current
portion thereof), and bank indebtedness less cash and cash equivalents and short-term securities.
August 31, 2010 August 31, 2009
Cash and cash equivalents (216,735) (253,862)
Short-term securities –(199,375)
Long-term debt repayable at maturity 4,021,033 3,596,882
Share capital 2,250,498 2,113,849
Contributed surplus 53,330 38,022
Retained earnings 457,728 382,227
6,565,854 5,677,743
The Company manages its capital structure and makes adjustments to it in light of changes in
economic conditions and the risk characteristics of underlying assets. The Company may also from
time to time change or adjust its objectives when managing capital in light of the Company’s
business circumstances, strategic opportunities, or the relative importance of competing objectives
as determined by the Company. There is no assurance that the Company will be able to meet or
maintain its currently stated objectives.
On November 16, 2009, Shaw received the approval of the TSX to renew its normal course issuer
bid to purchase its Class B Non-Voting Shares for a further one year period. The Company is
authorized to acquire up to 35,000,000 Class B Non-Voting Shares during the period November 19,
2009 to November 18, 2010.
The Company’s banking facilities are subject to covenants which include maintaining minimum or
maximum financial ratios, including total debt to operating cash flow and operating cash flow to
fixed charges. At August 31, 2010, the Company is in compliance with these covenants and based
113
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]