Shaw 2014 Annual Report Download - page 57

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
executive retirement plan funding in the prior year, all of which were partially offset by the
restructuring amounts and higher current income tax expense in the current year. The net
change in non-cash working capital balances related to operations fluctuated over the
comparative year due to the timing of payment of current income taxes payable and accounts
payable and accrued liabilities as well as fluctuations in accounts receivable.
Investing activities
($millions Cdn) 2014 2013 Increase
Cash flow used in investing activities (1,029) (642) 387
The cash used in investing activities increased over last year primarily due to the net cash
receipt in respect of the transactions with Rogers partially offset by the acquisition of Envision
in the comparative period and higher cash outlays for capital expenditures in the current year
partially offset by the proceeds on the sale of Historia and Series+ which closed on January 1,
2014.
Financing activities
The changes in financing activities during 2014 and 2013 were as follows:
Year ended August 31,
($millions Cdn) 2014 2013
Issuance of 4.35% senior unsecured notes 500 –
Issuance of floating rate senior unsecured notes 300 –
Redeem 6.5% senior unsecured notes (600) –
Repay 7.5% senior unsecured notes (350) –
Repay 6.1% senior unsecured notes –(450)
Repay promissory note (48) –
Prepay Partnership mortgage (19) –
Partnership mortgage loan proceeds 40 –
Senior notes issuance costs (4) –
Debt retirement costs (7) –
Dividends (352) (332)
Issuance of Class B Non-Voting Shares 70 69
Distributions paid to non-controlling interests (26) (19)
Contributions received from non-controlling interests –1
Repayment Partnership debt –(1)
(496) (732)
VI. LIQUIDITY AND CAPITAL RESOURCES
In the current year, the Company generated $698 million of free cash flow. Shaw used its free
cash flow along with $800 million of proceeds from the two senior unsecured note issuances,
net proceeds from the transactions with Corus of $93 million, proceeds on issuance of Class B
Non-Voting Shares of $70 million and the net working capital and inventory reduction of $180
million to repay the 7.5% $350 million senior notes, redeem the 6.5% $600 million senior
53