Shaw 2013 Annual Report Download - page 75

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
]
The Company reviews the estimates of lives and useful lives on a regular basis.
A
ssets
h
e
l
dfo
r
sa
l
e
N
on-current assets and d
i
s
p
osal
g
rou
p
s are class
ifi
ed as held
f
or sale when s
p
ec
ifi
ccr
i
ter
i
aar
e
m
et and are measured at the lower of carrying amount and estimated fair value less costs t
o
sell. Assets held for sale are not amortized and are re
p
orted se
p
aratel
y
on the statement o
f
fi
nanc
i
al
p
os
i
t
i
on
.
Other long-term asset
s
Other lon
g
-term assets
p
rimaril
y
include (i) e
q
ui
p
ment costs, as described in the revenue an
d
ex
p
enses account
i
n
gp
ol
i
c
y
,de
f
erred and amort
i
zed on a stra
ig
ht-l
i
ne bas
i
s over two to
fi
v
e
years; (ii) credit facility arrangement fees amortized on a straight-line basis over the term of the
f
acilit
y
; (iii) lon
g
-term receivables; and (iv) the non-current
p
ortion of
p
re
p
aid maintenance an
d
su
pp
ort contracts.
I
ntang
ibl
e
s
The excess of the cost of ac
q
uirin
g
cable, satellite and media businesses over the fair value o
f
related net
i
dent
ifi
able tan
gi
ble and
i
ntan
gi
ble assets ac
q
u
i
red
i
s allocated to
g
oodw
i
ll. Net
identifiable intangible assets acquired consist of amounts allocated to broadcast rights an
d
licenses, trademarks, brands,
p
ro
g
ram ri
g
hts, customer relationshi
p
s and software assets.
B
roadcast r
ig
hts and l
i
censes, trademarks and brands re
p
resent
i
dent
ifi
able assets w
i
th
indefinite useful lives. Spectrum licenses were acquired in Industry Canada’s auction o
f
licenses for advanced wireless services and have an indefinite life
.
P
ro
g
ram ri
g
hts re
p
resent licensed ri
g
hts ac
q
uired to broadcast television
p
ro
g
rams on the
C
om
p
an
y
’s convent
i
onal and s
p
ec
i
alt
y
telev
i
s
i
on channels and
p
ro
g
ram advances are
i
n res
p
ect
o
f payments for programming prior to the window license start date. For licensed rights, the
Com
p
an
y
records a liabilit
y
for
p
ro
g
ram ri
g
hts and corres
p
ondin
g
asset when the license
p
eriod
h
as commenced and all o
f
the
f
ollow
i
n
g
cond
i
t
i
ons have been met:
(i)
the cost o
f
the
p
ro
g
ram
i
s
known or reasonably determinable, (ii) the program material has been accepted by the Company
in accordance with the license a
g
reement and (iii) the material is available to the Com
p
an
y
for
t
elecast. Pro
g
ram r
ig
hts are ex
p
ensed on a s
y
stemat
i
c bas
i
s
g
enerall
y
over the est
i
mate
d
exhibition period as the programs are aired and are included in operating, general an
d
administrative ex
p
enses. Pro
g
ram ri
g
hts are se
g
re
g
ated on the statement of financial
p
ositio
n
between current and noncurrent based on ex
p
ected l
if
eatt
i
me o
f
ac
q
u
i
s
i
t
i
on
.
C
ustomer relat
i
onsh
ip
sre
p
resent the value o
f
customer contracts and relat
i
onsh
ip
sac
q
u
i
red
i
n
a business combination and are amortized on a straight-line basis over the estimated useful lif
e
o
f15
y
ears.
Software that is not an inte
g
ral
p
art of the related hardware is classified as an intan
g
ible asset
.
I
nternall
y
develo
p
ed so
f
tware assets are recorded at h
i
stor
i
cal cost and
i
nclude d
i
rect mater
i
al
and labour costs as well as borrowing costs on qualifying assets for which the commencement
d
ate is on or after Se
p
tember 1, 2010. Software assets are amortized on a strai
g
ht-line basis
o
ver est
i
mated use
f
ul l
i
ves ran
gi
n
gf
rom
f
our to ten
y
ears. The
C
om
p
an
y
rev
i
ews the est
i
mates
o
f lives and useful lives on a regular basis
.
7
1