Shaw 2013 Annual Report Download - page 123

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
]
t
he
$
196 (2012 –
$
182) of advertising receivables is due from the ten largest accounts. The
lar
g
est amount due from an advertisin
g
a
g
enc
y
is $19 (2012 – $20) which is a
pp
roximatel
y
10% (2012
–
11%)
o
f
advert
i
s
i
n
g
rece
i
vables. As at Au
g
ust
31
,
2013
, the
C
om
p
an
y
ha
d
accounts receivable of
$
486 (August 31, 2012 –
$
433), net of the allowance for doubtful
accounts of $27 (Au
g
ust 31, 2012 – $28). The Com
p
an
y
maintains an allowance for doubtful
accounts
f
or the est
i
mated losses result
i
n
gf
rom the
i
nab
i
l
i
t
y
o
fi
ts customers to make re
q
u
i
red
payments. In determining the allowance, the Company considers factors such as the number of
d
a
y
s the subscriber account is
p
ast due, whether or not the customer continues to receiv
e
serv
i
ce, the
C
om
p
an
y
’s
p
ast collect
i
on h
i
stor
y
and chan
g
es
i
n bus
i
ness c
i
rcumstances. As a
t
August 31, 2013,
$
135 (August 31, 2012 –
$
111) of accounts receivable is considered to be
p
ast due, defined as amounts outstandin
gp
ast normal credit terms and conditions
.
U
ncollect
i
ble accounts rece
i
vable are char
g
ed a
g
a
i
nst the allowance account based on the a
g
e
o
f the account and payment history. The Company believes that its allowance for doubtful
accounts is sufficient to reflect the related credit risk
.
The
C
om
p
an
y
m
i
t
ig
ates the cred
i
tr
i
sk o
f
advert
i
s
i
n
g
rece
i
vables b
yp
er
f
orm
i
n
gi
n
i
t
i
al and
o
ngo
i
ng cred
i
t evaluat
i
ons o
f
advert
i
s
i
ng customers.
C
red
i
t
i
s extended and cred
i
tl
i
m
i
ts are
d
etermined based on credit assessment criteria and credit quality. In addition, the Company
mi
t
ig
ates cred
i
tr
i
sk o
f
subscr
i
ber rece
i
vables throu
g
h advance b
i
ll
i
n
g
and
p
rocedures t
o
d
owngrade or suspend serv
i
ces on accounts that have exceeded agreed cred
i
t terms
.
Credit risks associated with US currency contracts arise from the inability of counterparties t
o
m
eet the terms o
f
the contracts. In the event o
f
non-
p
er
f
ormance b
y
the counter
p
art
i
es, the
C
ompany’s account
i
ng loss would be l
i
m
i
ted to the net amount that
i
t would be ent
i
tled t
o
receive under the contracts and agreements. In order to minimize the risk of counterpart
y
d
e
f
ault under
i
ts swa
p
a
g
reements, the
C
om
p
an
y
assesses the cred
i
tworth
i
ness o
fi
ts swa
p
counterpart
i
es.
C
urrently
100%
o
f
the total swap port
f
ol
i
o
i
s held by a
fi
nanc
i
al
i
nst
i
tut
i
on w
i
th
Standard & Poor’s ratings ranging from A+ to A-1.
L
i
q
uidity ris
k
L
iquidity risk is the risk that the Company will experience difficulty in meeting obligation
s
associated with financial liabilities. The Company manages its liquidity risk by monitoring cas
h
f
low
g
enerated
f
rom o
p
erat
i
ons, ava
i
lable borrow
i
n
g
ca
p
ac
i
t
y
, and b
y
mana
gi
n
g
the matur
i
t
y
pro
fi
les o
fi
ts long-term debt
.
The Company’s undiscounted contractual maturities as at August 31, 2013 are as follows
:
A
ccounts
p
aya
bl
ean
d
acc
r
ued
l
iabi
l
ities
(1
)
P
rom
i
ssor
y
n
ote
O
the
r
l
on
g
-term
liabi
l
ities
L
ong-term
d
e
bt
r
e
p
a
y
a
bl
ea
t
m
atur
i
t
y
I
n
te
r
est
p
a
y
ment
s
$$$$$
W
i
th
i
n one year
8
5
9
4
8
–
9
5
1 290
1
to 3
y
ears – – 5 318 475
3
to 5 years – – – 400 415
O
ver 5
y
ears – – –
3
,
200 2
,
2
7
9
8
5
9
4
8
54
,869 3,
45
9
(1) Includes accrued interest and dividends of
$
219
.
119