Shaw 2014 Annual Report Download - page 88

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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]
TVtropolis
The acquisition of Rogers’ 33.3% interest in TVtropolis increased the Company’s ownership to
100%. The difference between the consideration of $59, which was initially paid as a deposit
pending regulatory approval of the transaction, and the carrying value of the interest acquired of
$23 has been charged to retained earnings.
Business acquisition
On April 30, 2013, the Company acquired Enmax Envision Inc. (“Envision”), a wholly-owned
subsidiary of ENMAX Corporation, for $222 in cash. Envision provides telecommunication
services to business customers in Calgary. The purpose of the transaction is to expand on the
Company’s business initiatives and enhance the profile of its telecommunications services in
the competitive Calgary business marketplace.
Envision contributed approximately $12 of revenue and $1 of net income for the four month
period in fiscal 2013. If the acquisition had occurred on September 1, 2012, revenue and net
income would have been approximately $33 and $4, respectively. Acquisition related costs of
$3 to effect the transaction have been incurred and are included in acquisition and divestment
costs in the statement of income.
A summary of net assets and allocation of consideration is as follows:
$
Accounts receivable 3
Other current assets 1
Property, plant and equipment 73
Intangibles(1) 87
Goodwill(2) 68
232
Accounts payable and accrued liabilities 1
Unearned revenue 2
Deferred credits 5
Deferred income tax liability 2
222
(1) Intangibles is comprised of customer relationships and are being amortized over 15 years.
(2) Goodwill represents the combined value of growth expectations, an assembled workforce
and expected synergies and efficiencies from integrating the operations with the
Company’s existing business. Goodwill of $66 is deductible for income tax purposes.
Assets held for sale
A real estate property of $11, being the estimated fair value less costs to sell, has been
classified as held for sale in the statement of financial position at August 31, 2014 and 2013.
The estimated fair value has been determined by a commercial real estate service by means of
84