Shaw 2014 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2014 Shaw annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 129

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129

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]
(ii) The Company has various long-term operating commitments as follows:
$
2015 737
2016 – 2019 801
Thereafter 361
1,899
Comprised of: $
Program related agreements 771
Lease of transmission facilities, circuits and premises 452
Lease and maintenance of transponders 571
Exclusive rights to use intellectual property 71
Other (primarily maintenance and support contracts) 34
1,899
Included in operating, general and administrative expenses are transponder maintenance
expenses of $80 (2013 – $66) and rental expenses of $107 (2013 – $99).
(iii) At August 31, 2014, the Company had capital expenditure commitments in the normal
course of business of $45. The commitments are primarily in respect of 2015 and 2016.
(iv) As part of the CRTC decisions approving the acquisition of the broadcasting businesses in
2012 and 2011, the Company is required to contribute approximately $182 in new
benefits to the Canadian broadcasting system over seven years. The obligations have been
recorded in the income statement at fair value, being the sum of the discounted future
net cash flows using appropriate discount rates. At August 31, 2014, the remaining
expenditure commitments in respect of these obligations is $88 which will be funded over
future years through fiscal 2019.
(v) In late fiscal 2014, the Company partnered with Rogers to form shomi, a new
subscription video-on-demand service which launched in beta in early November 2014.
The Company’s initial capital commitment is $67 of which, $29 was funded subsequent
to year end.
Contingencies
The Company and its subsidiaries are involved in litigation matters arising in the ordinary
course and conduct of its business. Although resolution of such matters cannot be predicted
with certainty, management does not consider the Company’s exposure to litigation to be
material to these consolidated financial statements.
Guarantees
In the normal course of business the Company enters into indemnification agreements and has
issued irrevocable standby letters of credit and commercial surety bonds with and to third parties.
106