Shaw 2011 Annual Report Download - page 119

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2011, 2010 and 2009
[all amounts in thousands of Canadian dollars except share and per share amounts]
(4) The profit from the sale of satellite equipment is subtracted from the calculation of
segmented capital expenditures and equipment costs (net) as the Company views the
profit on sale as a recovery of expenditures on customer premise equipment.
(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.
17. 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:
$
2012 616,542
2013 286,249
2014 264,107
2015 257,086
2016 136,598
Thereafter 492,386
2,052,968
Program agreements generally commit the Company to acquire specific programs or films
or certain levels of future productions. The acquisition of these program rights is
contingent on actual production or airing of the programs or films. At August 31, 2011,
there is approximately $430,000 included above in respect of such program rights
commitments.
Included in operating, general and administrative expenses are transponder maintenance
expenses of $58,381 (2010 – $58,369; 2009 – $58,343) and rental expenses of
$90,181 (2010 – $66,987; 2009 – $67,663).
115