Shaw 2010 Annual Report Download - page 62

$650 million senior notes issuance in November. Short-term securities decreased as cash was used
to partially fund an interest in CW Media in May. Derivative instruments arose primarily upon
payment of $57.5 million to enter into an offsetting currency swap transaction for the outstanding
notional principal amount (i.e. end of swap notional exchange) under certain of the remaining cross-
currency interest rate exchange agreements. Future income taxes increased due to timing of various
temporary differences
Investments and other assets increased by $548.4 million due to the acquisition of an initial
interest in CW Media of $750.4 million, including transaction costs partially offset by reclassifying
$190.9 million of spectrum license deposits to intangibles.
Property, plant and equipment and other intangibles increased by $288.3 million and
$51.3 million, respectively as current year capital investment and amounts acquired on the
Mountain Cable acquisition exceeded amortization.
Deferred charges declined by $23.5 million due to a decrease in deferred equipment costs of
$26.8 million.
Broadcast rights and goodwill increased $245.0 million and $81.0 million, respectively, due to the
acquisition of Mountain Cablevision in Hamilton, Ontario.
Spectrum licenses of $190.9 million arose in the current year as the Company received its
ownership compliance decision from Industry Canada and was granted its AWS licenses.
Current liabilities (excluding current portion of long-term debt and derivative instruments) were up
$216.9 million due to increases in accounts payable of $60.0 million, income taxes payable of
$145.3 million and unearned revenue of $11.7 million. Accounts payable and accrued liabilities
increased due to higher trade and other payables mainly in respect of timing of payment of capital
expenditures partially offset by the impact of the Part II fee recovery. Income taxes payable was up
due to the current year income tax expense and unearned revenue increased due to the acquisition
of Mountain Cable, customer growth and rate increases.
Total long-term debt increased $831.7 million as a result of $1.88 billion in net proceeds on the
$1.25 billion and $650.0 million senior note issuances partially offset by the payment of
$1.02 billion on the early redemption of US $440 million senior notes, US $225 million senior
notes and US $300 million senior notes and a decrease of $40.5 million relating to the translation
of these US denominated senior notes prior to the redemption dates. The current portion of long-
term debt decreased due to the early redemption of US $440 million senior notes due in
April 2010.
Other long-term liabilities increased by $186.5 million due to the reclassification of $158.7 million
from derivative instruments in respect to the liability for the principal components of the
US $300,000 amended cross-currency interest exchange agreements and current year defined
benefit pension plan expense.
Derivative instruments (including current portion) decreased $379.4 million due to the payment of
$146.1 million to unwind and settle a portion of the principal component of two of the cross-
currency interest rate exchange agreements related to the US senior notes in October, the end of
swap notional exchange relating to one of the remaining outstanding cross-currency interest rate
agreements for which the Company had paid $88.4 million for an offsetting currency swap
transaction and the aforementioned reclassification of $158.7 million, all of which were partially
offset by the current year derivative loss, including $40.5 million in respect of the foreign exchange
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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010