Shaw 2013 Annual Report Download - page 111

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S
haw
C
ommunications Inc
.
N
O
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
August 31, 2013 and 201
2
[all amounts in millions of Canadian dollars exce
p
t share and
p
er share amounts
]
(ii) The Company has various long-term operating commitments as follows
:
$
201
4
745
2015-201
8
9
06
T
h
e
r
eafte
r
6
4
5
2,296
C
om
p
r
i
sed o
f
:
$
Program related agreements
862
Lease of transmission facilities, circuits and
p
remises 671
Lease and ma
i
ntenance o
f
transponders
66
7
Exclus
i
ve r
ig
hts to use
i
ntellectual
p
ro
p
ert
y6
4
O
ther (primarily maintenance and support contracts) 3
2
2
,
296
Included in o
p
eratin
g
,
g
eneral and administrative ex
p
enses are trans
p
onder maintenance
e
x
p
enses of $66 (2012 – $58) and rental ex
p
enses of $99 (2012 – $95)
.
(iii)
As part o
f
the
C
RT
C
dec
i
s
i
ons approv
i
ng the acqu
i
s
i
t
i
on o
f
the broadcast
i
ng bus
i
nesses
i
n
2
012 and 2011, the Company is required to contribute approximately
$
182 in ne
w
b
ene
fi
ts to the
C
anad
i
an broadcast
i
n
g
s
y
stem over seven
y
ears. The obl
ig
at
i
ons have been
recorded
i
n the
i
ncome statement at
f
a
i
r value, be
i
ng the sum o
f
the d
i
scounted
f
utur
e
net cash flows using appropriate discount rates. In addition, the Company assumed the
C
RT
C
bene
fi
t obl
ig
at
i
on
f
rom
C
anwest’s ac
q
u
i
s
i
t
i
on o
fSp
ec
i
alt
y
serv
i
ces
i
n
200
7. At
August
31
,
2013
, the rema
i
n
i
ng expend
i
ture comm
i
tments
i
n respect o
f
these obl
i
gat
i
on
s
i
s
$
146 which will be funded over future years through fiscal 2019.
C
ontingencies
The
C
om
p
an
y
and
i
ts subs
i
d
i
ar
i
es are
i
nvolved
i
nl
i
t
ig
at
i
on matters ar
i
s
i
n
gi
n the ord
i
nar
y
course and conduct of its business. Although resolution of such matters cannot be predicted
with certaint
y
, mana
g
ement does not consider the Com
p
an
y
’s ex
p
osure to liti
g
ation to b
e
mate
r
ia
l
to t
h
ese co
n
so
l
idated fi
n
a
n
cia
l
state
m
e
n
ts
.
Guarantees
I
n the normal course of business the Company enters into indemnification agreements and has
i
ssued
i
rrevocable standb
y
letters o
f
cred
i
t and commerc
i
al suret
y
bonds w
i
th and to th
i
rd
p
art
i
es.
Indemnitie
s
M
any agreements related to acquisitions and dispositions of business assets include
i
ndemn
ifi
cat
i
on
p
rov
i
s
i
ons where the
C
om
p
an
y
ma
y
be re
q
u
i
red to make
p
a
y
ment to a vendor o
r
purchaser
f
or breach o
f
contractual terms o
f
the agreement w
i
th respect to matters such a
s
litigation, income taxes payable or refundable or other ongoing disputes. The indemnification
p
er
i
od usuall
y
covers a
p
er
i
od o
f
two to
f
our
y
ears. Also,
i
n the normal course o
f
bus
i
ness, th
e
10
7