Shaw 2013 Annual Report Download - page 86

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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
]
contribution will be used to create new programming. The obligation has been recorded in the
income statement at fair value, bein
g
the discounted future cash flows usin
g
a 4% discoun
t
r
ate.
A summar
y
o
f
net assets ac
q
u
i
red and allocat
i
on o
f
cons
i
derat
i
on
i
sas
f
ollows:
$
Net assets ac
q
u
i
red at ass
ig
ned
f
a
i
r value
s
C
ash
6
Accou
n
ts
r
ecei
v
ab
l
e4
O
ther current asset
s
(
1)
4
Intang
i
bles
(2)
[
note
10]
28
Goodwill
,
not deductible for ta
x
(
3
)
[
note 10
]
3
4
5
Cu
rr
e
n
t
l
iabi
l
ities
3
Deferred income taxes 2
4
0
(1) O
ther current assets
i
s com
p
r
i
sed o
fp
ro
g
ram r
ig
hts
.
(2)
Intan
gi
bles
i
nclude broadcast l
i
censes and
p
ro
g
ram r
ig
hts
.
(3) G
oodw
i
ll com
p
r
i
ses the value o
f
ex
p
ected e
ffi
c
i
enc
i
es and s
y
ner
gi
es
f
rom
i
nte
g
rat
i
n
g
the
o
perat
i
ons w
i
th the
C
ompany’s other wholly-owned spec
i
alty channels.
P
u
r
c
h
ase a
n
dsa
l
e of assets
T
ransactions with Ro
g
ers Communications Inc. (“Ro
g
ers”
)
D
ur
i
n
g
the current
y
ear, the
C
om
p
an
y
entered
i
nto a
g
reements w
i
th Ro
g
ers to sell to Ro
g
ers
i
t
s
shares in Mountain Cablevision Limited (“Mountain Cable”) and grant to Rogers an option t
o
ac
q
uire its wireless s
p
ectrum licenses as well as to
p
urchase from Ro
g
ers its 33.3% interest i
n
TVtro
p
ol
i
s
G
eneral Partnersh
ip (“
TVtro
p
ol
i
s”
)
. The sale o
f
Mounta
i
n
C
able closed on A
p
r
i
l
30,
2013 and the acquisition of the additional interest in TVtropolis closed on June 30, 2013. The
exercise of the o
p
tion and the sale of the wireless s
p
ectrum licenses is still sub
j
ect to variou
s
re
g
ulator
y
a
pp
rovals and
i
sex
p
ected to occur
i
n
201
5. The transact
i
ons are strate
gi
c
i
n natur
e
allowing the Company to use a portion of the net proceeds to accelerate various capital
investments to im
p
rove and stren
g
then its network advanta
g
e
.
The Com
p
an
y
incurred costs of
$
5 in res
p
ect of the transactions with Ro
g
ers. These costs have
been ex
p
ensed and are
i
ncluded
i
nac
q
u
i
s
i
t
i
on and d
i
vestment costs
i
n the statement o
f
income.
M
ountain
C
abl
e
M
ounta
i
n
C
able has a
pp
rox
i
matel
y
4
0
,
000
v
i
deo customers
i
n
i
ts o
p
erat
i
ons based
i
n Ham
i
lton
,
Ontario. It represented a disposal group within the cable operating segment and accordingly, i
s
n
ot presented as discontinued operations in the statement of income.
82