Shaw 2014 Annual Report Download - page 59

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
optimal leverage for the Corporation in the current environment. Should the ratio fall below this,
on an other than temporary basis, the Board may choose to recapitalize back into this optimal
range. The Board may also determine to increase the Corporation’s debt above these levels to
finance specific strategic opportunities such as a significant acquisition or repurchase of Class
B Non-Voting Participating Shares in the event that pricing levels were to drop precipitously.
Off-balance sheet arrangement and guarantees
Guarantees
Generally it is not the Company’s policy to issue guarantees to non-controlled affiliates or third
parties; however, it has entered into certain agreements as more fully described in Note 25 to
the Consolidated Financial Statements. As disclosed thereto, Shaw believes it is remote that
these agreements would require any cash payment.
Contractual obligations
The amounts of estimated future payments under the Company’s contractual obligations at
August 31, 2014 are detailed in the following table.
CONTRACTUAL OBLIGATIONS
Payments due by period
($millions Cdn) Total
Within
1 year 2 – 3 years 4 – 5 years
More than
5 years
Long-term debt(1) 8,142 267 1,506 439 5,930
Operating obligations(2) 1,899 737 482 319 361
Purchase obligations(3) 75 59 14 2 –
Other obligations(4) 5– 5 – –
10,121 1,063 2,007 760 6,291
(1) Includes principal repayments and interest payments.
(2) Includes maintenance and lease of satellite transponders, program related agreements,
lease of transmission facilities and premises and exclusive rights to use intellectual
property in Canada.
(3) Includes capital expenditure and inventory purchase commitments.
(4) Includes other non-current financial liabilities and is in respect of program rights.
VII. ADDITIONAL INFORMATION
Additional information relating to Shaw, including the Company’s Annual Information Form
dated November 28, 2014, can be found on SEDAR at www.sedar.com.
VIII. COMPLIANCE WITH NYSE CORPORATE GOVERNANCE LISTING STANDARDS
Disclosure of the Company’s corporate governance practices which differ from the New York
Stock Exchange (“NYSE”) corporate governance listing standards are posted on Shaw’s website,
www.shaw.ca (under Investors/Corporate Governance/Compliance with NYSE Corporate
Governance Listing Standards).
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