Shaw 2013 Annual Report Download - page 112

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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
]
Company has provided indemnifications in various commercial agreements, customary for the
t
elecommunications industr
y
, which ma
y
re
q
uire
p
a
y
ment b
y
the Com
p
an
y
for breach o
f
contractual terms o
f
the a
g
reement.
C
ounter
p
art
i
es to these a
g
reements
p
rov
i
de the
C
om
p
an
y
with comparable indemnifications. The indemnification period generally covers, at maximum
,
t
he
p
eriod of the a
pp
licable a
g
reement
p
lus the a
pp
licable limitations
p
eriod under law.
The maximum
p
otential amount of future
p
a
y
ments that the Com
p
an
y
would be re
q
uired t
o
m
ake under these
i
ndemn
ifi
cat
i
on a
g
reements
i
s not reasonabl
yq
uant
ifi
able as certa
in
indemnifications are not subject to limitation. However, the Company enters int
o
indemnification a
g
reements onl
y
when an assessment of the business circumstances would
i
nd
i
cate that the r
i
sk o
f
loss
i
s remote. At Au
g
ust
31
,
2013
, mana
g
ement bel
i
eves
i
t
i
s remote
t
hat the indemnification provisions would require any material cash payment.
The Company indemnifies its directors and officers against any and all claims or losses
reasonabl
y
incurred in the
p
erformance of their service to the Com
p
an
y
to the extent
p
ermitte
d
by l
aw.
Irrevocable standby letters of credit and commercial surety bonds
The Com
p
an
y
and certain of its subsidiaries have
g
ranted irrevocable standb
y
letters of credi
t
and commerc
i
al suret
y
bonds,
i
ssued b
y
h
ig
h rated
fi
nanc
i
al
i
nst
i
tut
i
ons, to th
i
rd
p
art
i
es t
o
indemnify them in the event the Company does not perform its contractual obligations. As o
f
Au
g
ust 31, 2013, the
g
uarantee instruments amounted to
$
4. The Com
p
an
y
has not recorded
an
y
add
i
t
i
onal l
i
ab
i
l
i
t
y
w
i
th res
p
ect to these
g
uarantees, as the
C
om
p
an
y
does not ex
p
ect t
o
m
ake any payments in excess of what is recorded on the Company’s consolidated financia
l
statements. The
g
uarantee instruments mature at various dates durin
g
fiscal 2014.
26
. EMPL
O
YEE BENEFIT PLAN
S
Defined contribution pension plans
The Company has defined contribution pension plans for its non-union employees and, for the
m
a
j
or
i
t
y
o
f
these em
p
lo
y
ees, contr
i
butes 5
%
o
f
el
igi
ble earn
i
n
g
s to the max
i
mum amount
d
eductible under the Income Tax Act. For union employees, the Company contributes amounts
u
p to 9.8% of earnings to the individuals’ registered retirement savings plans. Total pension
costs in res
p
ect of these
p
lans for the
y
ear were $35 (2012 – $32) of which $23 (2012 – $20)
was expensed and the remainder capitalized.
108