Shaw 2013 Annual Report Download - page 121

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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) Investments and other assets and Other long-term asset
s
Investments
i
n
p
r
i
vate ent
i
t
i
es wh
i
ch do not have
q
uoted market
p
r
i
ces
i
n an act
i
v
e
market and whose
f
a
i
r value cannot be read
i
ly measured are carr
i
ed at cost. The
f
a
ir
v
alue of long-term receivables approximates their carrying value as they are recorded at
the net
p
resent values o
f
the
i
r
f
uture cash
f
lows, us
i
n
g
an a
pp
ro
p
r
i
ate d
i
scount rate.
(iii)
Long-term deb
t
The carr
y
in
g
value of lon
g
-term debt is at amortized cost based on the initial fair value as
determ
i
ned at the t
i
me o
fi
ssuance. The
f
a
i
r value o
fp
ubl
i
cl
y
traded notes
i
s based u
p
on
current trading values. Other notes and debentures are valued based upon curren
t
tradin
g
values for similar instruments.
(i
v
)O
ther long-term l
i
ab
i
l
i
t
i
e
s
The fair value of program rights payable, estimated by discounting future cash flows,
app
rox
i
mates the
i
r carr
yi
n
g
value
.
(v) Derivative financial instrument
s
The
f
a
i
r value o
f
U
S
currenc
yf
orward
p
urchase contracts
i
s determ
i
ned us
i
n
g
an
est
i
mated cred
i
t-ad
j
usted mark-to-market valuat
i
on
.
The carr
y
in
g
values and estimated fair values of lon
g
-term debt and derivative financia
l
i
n
st
r
u
m
e
n
ts a
r
easfo
ll
o
w
s:
August 31, 2013 August 31, 201
2
C
arryin
g
v
a
l
ue
Estimate
d
fair value
C
arrying
v
a
l
ue
E
stimate
d
f
air valu
e
$$$$
Assets
Der
i
vat
i
ve
fi
nanc
i
al
i
nstrument
s
(1
)
33
–
–
L
iabilities
Long-term debt 4,
818
5,
2
75
5
,
263
5,75
3
Derivative financial instrument
s
(1
)
––
11
4
,
818 5
,
275
5
,264 5,75
4
(1)
Level
2f
a
i
r value – determ
i
ned b
y
valuat
i
on techn
iq
ues us
i
n
gi
n
p
uts based on observabl
e
m
arket data, e
i
ther d
i
rectly or
i
nd
i
rectly, other than quoted pr
i
ces.
D
erivative financial instruments held at Au
g
ust 31, 2013 have maturit
y
dates throu
g
hout fisca
l
201
4.
As at August 31, 2013 and 2012, US currency forward purchase contracts qualified as hedgin
g
instruments and were desi
g
nated as cash flow hed
g
es
.
Ri
s
k
managemen
t
The Company is exposed to various market risks including currency risk and interest rate risk
,
as well as credit risk and li
q
uidit
y
risk associated with financial assets and liabilities. Th
e
C
om
p
an
y
has des
ig
ned and
i
m
p
lemented var
i
ous r
i
sk mana
g
ement strate
gi
es, d
i
scussed
f
urther
below, to ensure the exposure to these risks is consistent with its risk tolerance and busines
s
o
b
j
ectives
.
11
7