Shaw 2013 Annual Report Download - page 55

S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
31
,
2013
revenue dur
i
n
g
the
f
ourth
q
uarter o
f
the current
y
ear com
p
ared to the
f
ourth
q
uarter o
f
the
p
r
i
o
r
year and reclassification of advance bill payments to unearned revenue. Other current assets
d
eclined primarily due to a reduction in a tax indemnity upon resolution of the related income
ta
xl
iabi
l
ities
.
P
ro
p
ert
y
,
p
lant and e
q
ui
p
ment increased $128 million
p
rimaril
y
as a result of current
y
ea
r
capital investment and the acquisition of Envision exceeding amortization and the impact of the
sale of Mountain Cable
.
Other long-term assets decreased
$
25 million primarily due to a decline in deferred equipmen
t
costs
.
I
ntan
g
ibles decreased $202 million due to the sale of Mountain Cable of $245 million an
d
reclassification of
$
92 million in respect of Historia and Series+ to assets held for sale partiall
y
o
ffset by higher program rights and advances of
$
33 million, an increase in other intangibles o
f
$
19 million and the reco
g
nition of $87 million in customer relationshi
p
s on the ac
q
uisition o
f
E
nv
i
s
i
on. Add
i
t
i
onal
i
nvestment
i
nso
f
tware
i
ntang
i
bles and acqu
i
red r
i
ghts and advance
s
exceeded the amortization for the current year
.
Goodwill decreased
$
17 million primarily due to the sale of Mountain Cable of
$
81 million
p
artiall
y
offset b
y
$68 million on the ac
q
uisition of Envision.
Current liabilities increased $610 million due to increases in accounts
p
a
y
able and accruals o
f
$
48 million, current portion of long-term debt of
$
499 million, a promissory note of
$
48
m
illion arising on the closing of the transactions with Corus, unearned revenue of
$
15 millio
n
and reclassification of $14 million in res
p
ect of liabilities associated with the Historia an
d
S
er
i
es+ assets held
f
or sale, all o
f
wh
i
ch were part
i
ally o
ff
set by a decrease
i
n current
i
ncom
e
t
axes payable of
$
20 million. Accounts payable and accruals increased due to higher trade an
d
o
ther
p
a
y
ables
p
r
i
mar
i
l
yi
n res
p
ect o
f
t
i
m
i
n
g
o
f
ca
pi
tal ex
p
end
i
tures and
i
nventor
y
. The curren
t
portion of long-term debt increased due to the reclassification of the 7.5%
$
350 million senior
n
otes due in November 2013 and 6.5%
$
600 million senior notes due June 2014 partiall
y
o
ffset b
y
re
p
a
y
ment of the 6.1% $450 million senior notes which were due in November 2012
.
U
nearned revenue
i
ncreased pr
i
mar
i
ly due to reclass
ifi
cat
i
on o
f
advance b
i
ll payments
f
rom
accounts receivable. The liabilities associated with assets held for sale is primarily composed of
d
e
f
erred
i
ncome taxes. Income taxes
p
a
y
able decl
i
ned due to tax
i
nstallment
p
a
y
ments, th
e
resolution of certain income tax liabilities and receipt of tax credits all of which were partially
o
ffset by the current period expense.
L
ong-term debt decreased
$
944 million due to the aforementioned reclassification of the 7.5
%
$
350 million senior notes and 6.5% $600 million senior notes.
Other lon
g
-term liabilities decreased $330 million
p
rimaril
y
due to the $300 million
contribution to a retirement compensation arrangement trust (“the RCA”) in order to partially
f
und a non-registered defined benefit pension plan and a decrease in CRTC benefit obligations
p
art
i
all
y
o
ff
set b
y
current
y
ear
p
ens
i
on ex
p
ense
.
D
eferred credits increased $237 million
p
rimaril
y
due to the $250 million received from Ro
g
ers
in respect of the option to acquire the wireless spectrum licenses.
D
eferred income tax liabilities, net of deferred income tax assets, increased
$
71 millio
n
primarily due to current year expense partially offset by the sale of Mountain Cable and th
e
a
f
orement
i
oned reclass
ifi
cat
i
on o
f
amounts
i
n res
p
ect o
f
H
i
stor
i
a and
S
er
i
es+.
51