Shaw 2014 Annual Report Download - page 86

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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]
3. PURCHASE AND SALE OF ASSETS, BUSINESS ACQUISITION, AND
ASSETS HELD FOR SALE
Purchase and sale of assets
Transactions with Corus Entertainment Inc. (“Corus”)
During 2013 the Company entered into a series of agreements with Corus (see note 27) to
optimize its portfolio of specialty channels. Effective April 30, 2013, the Company sold to
Corus its 49% interest in ABC Spark and acquired from Corus its 20% interest in Food Network
Canada. 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 on
January 1, 2014.
Historia and Series+
Historia and Series+ represented a disposal group within the media segment and accordingly,
were not presented as discontinued operations in the statement of income. Sale proceeds of
$141 included $2 in respect of working capital adjustments. The Historia and Series+ assets
and liabilities disposed of in fiscal 2014 and classified as held for sale in the statement of
financial position at August 31, 2013 are as follows:
2014
$
2013
$
Accounts receivable 54
Other current assets 45
Intangibles 93 92
Goodwill 44
106 105
Accounts payable and accrued liabilities 22
Deferred income tax liability 12 12
14 14
Food Network Canada and ABC Spark
In 2013 the acquisition of an additional 20% interest in Food Network Canada increased the
Company’s ownership to 71%. The difference between the consideration of $67 and carrying
value of the interest acquired of $47 has been charged to retained earnings.
The Company recorded proceeds, including working capital adjustments, of $19 and gain on
sale of associate of $7 on the disposition of its 49% interest in ABC Spark.
The Company issued a non-interest bearing promissory note of $48 to satisfy the net
consideration in respect of these transactions. The promissory note was settled in fiscal 2014
in connection with the closing of the sale of Historia and Series+ to Corus.
Transactions with Rogers Communications Inc. (“Rogers”)
During 2013, the Company entered into agreements with Rogers to sell to Rogers its shares in
Mountain Cablevision Limited (“Mountain Cable”) and grant to Rogers an option to acquire its
82