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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
]
A summary of net assets and allocation of consideration is as follows
:
$
A
ccounts rece
i
vabl
e
3
O
ther current asset
s
1
Pro
p
ert
y
,
p
lant and e
q
u
ip
men
t
73
Intangibles
(
1
)
87
Good
w
i
l
l
(2)
68
232
A
ccounts payable and accrued liabilities
1
U
n
ea
rn
ed
r
e
v
e
n
ue
2
Deferred credits 5
De
f
erred
i
ncome tax l
i
ab
i
l
i
t
y
2
222
(1)
Intan
gi
bles
i
s com
p
r
i
sed o
f
customer relat
i
onsh
ip
s and are be
i
n
g
amort
i
zed over
1
5
y
ears.
(2) Goodwill re
p
resents the combined value of
g
rowth ex
p
ectations, an assembled workforce
and ex
p
ected s
y
ner
gi
es and e
ffi
c
i
enc
i
es
f
rom
i
nte
g
rat
i
n
g
the o
p
erat
i
ons w
i
th the
Company’s existing business. Goodwill of
$
66 is deductible for income tax purposes.
2012
Television broadcastin
g
businesses
$
Cas
h
21
C
onsideration for the equity interests held prior to the acquisition 9
30
C
umulat
i
ve
i
ncome
f
rom e
q
u
i
t
yi
nterests
p
r
i
or to ac
q
u
i
s
i
t
i
on
4
Gain on remeasurement of interests in equity investments 6
40
O
n May
31
,
2012
, the
C
ompany closed the acqu
i
s
i
t
i
on o
f
the partnersh
i
pun
i
ts o
f
Mystery
P
artnership (“Mystery”) and Men TV General Partnership (“The Cave”) not already owned by the
Com
p
an
y
, for total consideration of $21. Prior to the ac
q
uisition, the Com
p
an
y
held a 50
%
i
nterest
i
n Mystery wh
i
ch was proport
i
onately consol
i
dated and a 4
9% i
nterest
i
n The
C
ave
which was accounted for under the equity method. The fair value of the previous ownershi
p
interests in these s
p
ecialt
y
channels on the ac
q
uisition date was $19. The transaction i
s
accounted
f
or us
i
ng the acqu
i
s
i
t
i
on method and as a result o
f
remeasur
i
ng these equ
i
t
y
interests to fair value, the Company recorded a gain of
$
6 in the income statement. If the
ac
q
u
i
s
i
t
i
on had occurred on
S
e
p
tember
1
,
2011
, revenue and net
i
ncome
f
or the
y
ear woul
d
h
ave been approximately
$
12 and
$
2, respectively
.
As
p
art o
f
the
C
RT
C
dec
i
s
i
ons a
pp
rov
i
n
g
the transact
i
on, the
C
om
p
an
yi
sre
q
u
i
red to contr
i
but
e
$
2 in new benefits to the Canadian broadcasting system over the next seven years. The
81