Shaw 2011 Annual Report Download - page 97

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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]
(ii) During 2010, the Company purchased all of the outstanding shares of Mountain Cablevision
in Hamilton, Ontario. The cable system serves approximately 41,000 basic subscribers and
results of operations have been included commencing November 1, 2009.
(iii) During 2009, the Company purchased the assets comprising the Campbell River cable
system in British Columbia which serves approximately 12,000 basic subscribers. The
acquisition was effective February 1, 2009 and results of operations have been included
from that date.
Discontinued operations
During late 2011, the Company completed a strategic review of its wireless business
opportunity including the potential value of wireless with its other operating segments, the rapid
evolution of wireless technologies, the capital required to build a competitive network and
recent changes in the wireless competitive environment. As a result, the Company decided to
discontinue any further construction of its wireless network. Accordingly, the assets were
measured at the lower of carrying amount and estimated fair value less costs to sell resulting in
a write-down of $111,492 and classification of $16,000 as assets held for sale. The Company
has determined the carrying value of the wireless spectrum licenses continues to be appropriate
and intends to hold these assets while it reviews all options.
The results of operations and related cash flows have been reported as discontinued operations
with restatement of the comparative period.
The loss from discontinued operations in 2011 and 2010 is comprised of the following:
2011
$
2010
$
Operating expenditures 7,404 1,396
Amortization 905 –
Write-down of assets 111,492 –
Income tax recovery (30,538) (352)
Loss from discontinued operations 89,263 1,044
The cash flows used in discontinued operations in 2011 and 2010 is comprised of the
following:
2011
$
2010
$
Cash used in operating activities 10,486 1,492
Cash used in investing activities 137,464 30,138
Decrease in cash from discontinued operations 147,950 31,630
93