Shaw 2014 Annual Report Download - page 119

Download and view the complete annual report

Please find page 119 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]
Other related parties
The Company has entered into certain transactions and agreements in the normal course of
business with certain of its related parties. These transactions are measured at the exchange
amount, which is the amount of consideration established and agreed to by the related parties.
Corus
The Company and Corus are subject to common voting control. During the year, network fees of
$120 (2013 – $125), advertising fees of $1 (2013 – $1) and programming fees of $1 (2013 –
$1) were paid to various Corus subsidiaries and entities subject to significant influence. In
addition, the Company provided administrative, advertising and other services for $1 (2013 –
$nil), uplink of television signals for $5 (2013 – $5), Internet services and lease of circuits for
$1 (2013 – $1) and programming content of $1 (2013 – $1). At August 31, 2014, the
Company had a net of $20 owing in respect of these transactions (2013 – $21) and
commitments in respect of network program agreements of $15 which are included in the
amounts disclosed in note 25.
During 2013 the Company sold to Corus its 49% interest in ABC Spark and acquired from
Corus its 20% interest in Food Network Canada. The Company had a non-interest bearing
promissory note of $48 owing to Corus at August 31, 2013 in respect of these transactions. In
addition, the Company agreed to sell to Corus its 50% interest in its two French-language
channels, Historia and Series+. The sale of Historia and Series+ closed in 2014 (see note 3) at
which time the Company settled the aforementioned promissory note.
The Company provided Corus with television advertising spots in return for radio and television
advertising. No monetary consideration was exchanged for these transactions and no amounts
were recorded in the accounts.
Burrard Landing Lot 2 Holdings Partnership
During the year, the Company paid $10 (2013 – $10) to the Partnership for lease of office
space in Shaw Tower. Shaw Tower, located in Vancouver, BC, is the Company’s headquarters for
its lower mainland operations. At August 31, 2014, the Company had a remaining commitment
of $101 in respect of the office space lease which is included in the amounts disclosed in note
25.
Specialty Channels
The Company previously held interests in a number of specialty television channels which were
subject to either joint control or significant influence. The Company paid network fees of $1
(2013 – $2) and provided uplink of television signals of $nil (2013 – $1) to these channels
during the year.
28. FINANCIAL INSTRUMENTS
Fair values
The fair value of financial instruments has been determined as follows:
(i) Current assets and current liabilities
The fair value of financial instruments included in current assets and current liabilities
approximates their carrying value due to their short-term nature.
115