Shaw 2012 Annual Report Download - page 25

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2012
iii) Free cash flow
The Company uses free cash flow as a measure of the Company’s ability to repay debt and
return cash to shareholders. Consolidated free cash flow is calculated as follows:
Year ended August 31,
($millions Cdn) 2012 2011(2)
Change
%
Revenue
Cable 3,193 3,096 3.1
Satellite 844 827 2.1
Media 1,053 891 18.2
5,090 4,814 5.7
Intersegment eliminations (92) (73) 26.0
4,998 4,741 5.4
Operating income before amortization(1)
Cable 1,502 1,510 (0.5)
Satellite 293 289 1.4
Media 332 252 31.7
2,127 2,051 3.7
Capital expenditures and equipment costs (net):
Cable 810 709 14.2
Satellite 94 107 (12.1)
Media 31 27 14.8
Total 935 843 10.9
Free cash flow before the following 1,192 1,208 (1.3)
Less:
Interest (329) (312) 5.4
Cash taxes (282) (240) 17.5
Other adjustments:
Non-cash share-based compensation 610 (40.0)
CRTC benefit obligation funding (48) (30) 60.0
Non-controlling interests (34) (20) 70.0
Pension adjustment 12 16 (25.0)
Customer equipment financing (20) (15) 33.3
Preferred share dividends (15) – >100.0
Free cash flow 482 617 (21.9)
Operating margin(1)
Cable 47.0% 48.8% (1.8)
Satellite 34.7% 34.9% (0.2)
Media 31.5% 28.3% 3.2
(1) See key performance drivers on page 20.
(2) Restated to reflect changes in the calculation related to the pension adjustment and
customer equipment financing.
21