Shaw 2010 Annual Report Download - page 93

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10. DEFERRED CREDITS
Amount
$
Accumulated
amortization
$
Net book
value
$
Amount
$
Accumulated
amortization
$
Net book
value
$
2010 2009
IRU prepayments 629,119 119,251 509,868 629,119 106,705 522,414
Equipment revenue 384,580 272,875 111,705 406,609 280,598 126,011
Connection fee and installation
revenue 19,591 12,317 7,274 23,619 17,560 6,059
Deposit on future fibre sale 2,000 – 2,000 2,000 – 2,000
Other 1,635 – 1,635 2,589 – 2,589
1,036,925 404,443 632,482 1,063,936 404,863 659,073
Amortization of deferred credits for 2010 amounted to $138,187 (2009 – $153,168; 2008 –
$150,366) 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 2010
amounted to $12,546 (2009 – $12,547; 2008 – $12,547). Amortization of equipment revenue
for 2010 amounted to $120,639 (2009 – $132,974; 2008 – $126,601). Amortization of
connection fee and installation revenue for 2010 amounted to $5,002 (2009 – $7,647;
2008 – $11,218) and was recorded as service revenue.
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, and 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.
2010 2009
2010
$
2009
$
Number of securities
22,520,064 22,520,064 Class A Shares 2,468 2,468
410,622,001 407,717,782 Class B Non-Voting Shares 2,248,030 2,111,381
433,142,065 430,237,846 2,250,498 2,113,849
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.
89
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]