Shaw 2014 Annual Report Download - page 109

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2014 and 2013
[all amounts in millions of Canadian dollars except share and per share amounts]
2013
Cable
$
Media
$
Satellite
$
Intersegment
eliminations
$
Total
$
Revenue 3,266 1,106 860 (90) 5,142
Operating income before amortization 1,582 353 285 – 2,220
Amortization(1) (854)
Operating income 1,366
Operating income before amortization as % of revenue 48.4% 31.9% 33.1% – 43.2%
Interest(1) 308
Burrard Landing Lot 2 Holdings Partnership 1
309
Cash taxes(1) 300
Corporate/other (138)
162
Capital expenditures and equipment costs (net) by segment
Capital expenditures 825 31 42 – 898
Equipment costs (net) 42 – 81 – 123
867 31 123 – 1,021
Reconciliation to Consolidated Statements of Cash Flows
Additions to property, plant and equipment 802
Additions to equipment costs (net) 132
Additions to other intangibles 69
Total of capital expenditures and equipment costs (net) per Consolidated
Statements of Cash Flows 1,003
Increase in working capital related to capital expenditures 33
Increase in customer equipment financing receivables (9)
Less: Proceeds on disposal of property, plant and equipment (3)
Less: Satellite services equipment profit(2) (3)
Total capital expenditures of equipment costs (net) reported by segments 1,021
(1) The Company does not report restructuring costs, amortization, interest or cash taxes on a
segmented basis.
(2) The profit from the sale of satellite equipment is subtracted from the calculation of
segmented capital expenditures and equipment costs (net) as the Company views the
profit on sale as a recovery of expenditures on customer premise equipment.
25. COMMITMENTS AND CONTINGENCIES
Commitments
(i) The Company owns and leases Ku-band and C-band transponders on the Anik F1R, Anik
F2 and Anik G1 satellites. As part of the Ku-band transponder agreements with Telesat
Canada, the Company is committed to paying annual transponder maintenance and
license fees for each transponder from the time the satellite becomes operational for a
period of 15 years.
105