Shaw 2014 Annual Report Download - page 87

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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]
wireless spectrum licenses as well as to purchase from Rogers its 33.3% interest in TVtropolis
General Partnership (“TVtropolis”). The sale of Mountain Cable closed on April 30, 2013 and
the acquisition of the additional interest in TVtropolis closed on June 30, 2013. The exercise of
the option and the sale of the wireless spectrum licenses is still subject to various regulatory
approvals. The transactions are strategic in nature allowing the Company to use a portion of the
net proceeds to accelerate various capital investments to improve and strengthen its network
advantage.
The Company incurred costs of $5 in respect of the transactions with Rogers. These costs have
been expensed and are included in acquisition and divestment costs in the statement of
income.
Mountain Cable
Mountain Cable had approximately 40,000 video customers in its operations based in
Hamilton, Ontario. It represented a disposal group within the cable operating segment and
accordingly, was not presented as discontinued operations in the statement of income.
The Company received proceeds of $398 in cash on the sale of the Mountain Cable and
recorded a gain of $50. The assets and liabilities disposed of were as follows:
$
Accounts receivable 2
Property, plant and equipment 65
Other long-term assets 3
Intangibles 245
Goodwill 81
396
Accounts payable and accrued liabilities 1
Income tax payable 1
Unearned revenue 2
Deferred credits 2
Deferred income taxes 42
48
Wireless spectrum licenses
The wireless spectrum licenses are not classified as assets held for sale as the exercise of the
option and the sale of the wireless spectrum licenses is subject to various regulatory approvals.
The Company received $50 in respect of the purchase price of the option to acquire the
wireless spectrum licenses. The amount is recorded in deferred credits and will be included as
part of the proceeds received on exercise of the option and sale of the wireless spectrum
licenses, or alternatively as a gain if the option is not exercised and expires. In addition, the
Company received a $200 refundable deposit in respect of the option exercise price. The
deposit has been recorded in deferred credits and will be included as part of the proceeds
received on exercise of the option and sale of the wireless spectrum licenses or refunded to
Rogers if the option is not exercised and expires.
83