Shaw 2014 Annual Report Download - page 50

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
The Company incurred $4 million of acquisition related costs in fiscal 2014 for professional
fees paid to lawyers, consultants and advisors in respect of the acquisition of ViaWest which
closed subsequent to year end.
In 2013, the Company incurred $8 million of costs in respect of the acquisition of Envision and
the transactions with Rogers related to the sale of Mountain Cable, grant of an option to acquire
the wireless spectrum licenses and purchase from Rogers its interest in TVtropolis.
During 2013, the Company recorded a gain of $7 million on the sale of its interest in ABC
Spark to Corus.
The Company records accretion expense in respect of the discounting of certain long-term
liabilities and provisions which are accreted to their estimated value over their respective terms.
The expense is primarily in respect of CRTC benefit obligations.
On February 18, 2014, the Company redeemed the $600 million 6.50% senior notes due
June 2, 2014. In connection with the early redemption, the Company incurred costs of
$7 million and wrote-off the remaining finance costs of $1 million.
Other losses generally includes realized and unrealized foreign exchange gains and losses on
US dollar denominated current assets and liabilities, gains and losses on disposal of property,
plant and equipment and minor investments, and the Company’s share of the operations of
Burrard Landing Lot 2 Holdings Partnership. During the prior year, the category included
amounts related to the electrical fire and resulting water damage to Shaw Court that occurred
during the fourth quarter of 2012. In fiscal 2013, the Company received insurance advances of
$5 million related to its insurance claim and incurred costs of $13 million in respect of ongoing
recovery activities. In addition, during the fourth quarter of the prior year, the Company decided
to discontinue further construction of a real estate project which resulted in a write-down of
$14 million. During the current year, the category includes additional proceeds of $6 million
related to the aforementioned insurance claim and also includes a refund of $5 million in
respect of excess money from the Canwest CCAA plan implementation fund and a write-down of
$6 million in respect of discontinued capital projects.
Income tax expense
The income tax expense was calculated using current statutory income tax rates of 26.0% for
2014 and 25.9% for 2013 and was adjusted for the reconciling items identified in Note 23 to
the Consolidated Financial Statements.
Earnings per share
($millions Cdn except per share amounts) 2014 2013
Change
%
Net income 887 784 13.1
Weighted average number of participating
shares outstanding during period (millions) 457 448 2.0
Earnings per share
Basic 1.84 1.64 12.2
Diluted 1.84 1.63 12.9
46