Shaw 2014 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 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.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
in making operating decisions and assessing its performance. Certain investors, analysts and
others utilize these measures in assessing the Company’s operational and financial performance
and as an indicator of its ability to service debt and return cash to shareholders. These non-
IFRS measures and additional GAAP measures have not been presented as an alternative to net
income or any other measure of performance or liquidity prescribed by IFRS. The following
contains a description of the Company’s use of non-IFRS financial measures and additional
GAAP measures and provides a reconciliation to the nearest IFRS measure or provides a
reference to such reconciliation.
ii) Operating income before restructuring costs and amortization
Operating income before restructuring costs and amortization is calculated as revenue less
operating, general and administrative expenses. It is intended to indicate the Company’s ability
to service and/or incur debt, and therefore it is calculated before one-time items like
restructuring costs, amortization (a non-cash expense) and interest. Operating income before
restructuring costs and amortization is also one of the measures used by the investing
community to value the business.
Relative increases period-over-period in operating income before restructuring costs and
amortization and in operating margin are indicative of the Company’s success in delivering
valued products and services, and engaging programming content to its customers in a cost-
effective manner.
Year ended August 31,
($ millions Cdn) 2014 2013
Operating income 1,439 1,366
Add back (deduct):
Restructuring costs 58 –
Amortization:
Deferred equipment revenue (69) (121)
Deferred equipment costs 142 257
Property, plant and equipment, intangibles and other 692 718
Operating income before restructuring costs and amortization 2,262 2,220
iii) Operating margin
Operating margin is calculated by dividing operating income before restructuring costs and
amortization by revenue.
22