Shaw 2015 Annual Report Download

Download and view the complete annual report

Please find the complete 2015 Shaw annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

2015 Annual Report

Table of contents

  • Page 1
    2015 Annual Report

  • Page 2
    ... Reporting Independant Auditors' Reports Consolidated Financial Statements Shareholders' Information Corporate Information 53 55 106 107 The Annual General Meeting of Shareholders will be held on January 14, 2016 at 11:00 am (Mountain Time) at Shaw Court, 630 - 3rd Avenue SW, Calgary, Alberta...

  • Page 3
    ... businesses, and promoting our value proposition to "Grow your business with Shaw Business." Notably, in 2015 we worked with a number of global vendor partners to launch our "Smart" suite of flexible and easy to use managed business communications solutions. 2015 Annual Report Shaw Communications...

  • Page 4
    ...went to our multiple partnerships that benefit kids and youth-focused charities under the Shaw Kids Investment Program (SKIP). Every day, our more than 14,000 employees come to work and serve our customers, viewers and our communities the very best way they can. They deliver time and time again, and...

  • Page 5
    ...and from the development of new markets for emerging technologies; industry trends and other changing conditions in the entertainment, information and communications industries; Shaw's ability to execute its strategic plans; opportunities that may be presented to and pursued by Shaw; changes in laws...

  • Page 6
    ... television channels along with online and over-the-top video platforms In the following sections we provide select financial highlights and review our strategy, our four divisions, our network and our presence in the communities in which we operate. Shaw is traded on the Toronto Stock Exchange...

  • Page 7
    Shaw Communications Inc. Management's Discussion and Analysis August 31, 2015 Subscriber highlights August 31, 2015 August 31, 2014 Change Consumer Video - Cable Video - Satellite Internet Phone Business Network Services Video - Cable Video - Satellite Internet Phone 1,764,523 811,988 1,774,374 1,...

  • Page 8
    ... our corporate strategy, with investments in procurement, supply chain, marketing, pricing, network architecture and next generation products and, as a result, we eliminated approximately 400 management and non-customer facing roles Å and in 2015 we: Å Å announced a realignment of customer care...

  • Page 9
    ... needs at home and on the go. As our customer needs evolve, we continue to be more flexible with our service offerings. Our customer-centric strategy is designed to deliver high-quality customer service, simplicity, value and choice for our customers. 2015 Annual Report Shaw Communications Inc. 7

  • Page 10
    Shaw Communications Inc. Management's Discussion and Analysis August 31, 2015 Network-Connected Service Areas Edmonton Vancouver Okanagan region Victoria Calgary Swift Current Moose Jaw Winnipeg Kenora Sault Ste. Marie Thunder Bay Prince Albert Saskatoon Regina Internet Every day, the Internet ...

  • Page 11
    ...Canada with video and audio programming by satellite. Shaw Direct customers have access to over 550 digital video channels (including over 220 HD channels) and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles. Similar to our network-connected video service...

  • Page 12
    ...Calgary marketplace. The range of services offered by Shaw Business includes: Å Å Fibre Internet - scalable, symmetrical fibre Internet solutions from 10 Mbps to more than 10Gbps Data Connectivity - secure private connectivity for multiple locations 10 Shaw Communications Inc. 2015 Annual Report

  • Page 13
    ... to internet service providers ("ISPs"), other communications companies, broadcasters, governments and other businesses and organizations that require end-to-end Internet and data connectivity in Canada and the United States. We also engage in public and private peering arrangements with high speed...

  • Page 14
    .... Business Infrastructure Services continues to execute on its plans for continued growth. In the fall of 2015 we expanded operations into Canada with the opening of the new Calgary data centre under our Canadian brand "Shaw Data Centre & Cloud Solutions, Powered by ViaWest", where customers will...

  • Page 15
    ... television networks, Global Television, 19 specialty networks and digital properties. Shaw acquired its Media operations from Canwest Global Communications Corp. through a series of transactions that concluded in October 2010. Media derives revenues from two principal sources: advertising revenue...

  • Page 16
    .... Advertising Our Media team is exploring a number of next generation advertising solutions that combine the intelligence of data with the power of television to maintain and grow our advertising business. We are part of an industry working group that is looking at the development of a common video...

  • Page 17
    ... NEW YORK CHICAGO ASHBURN WASHINGTON AMSTERDAM PALO ALTO SAN JOSE ASIA Regional Distribution Network We connect our backbone network to residential and business customers through our extensive regional fibre optic and co-axial cable distribution networks. 2015 Annual Report Shaw Communications...

  • Page 18
    ... customer homes that allowed them to receive digital television services in place of former analog services. We referred to this reclamation initiative as the Digital Network Upgrade ("DNU"). In 2014 and 2015, we removed the remaining analog basic services in the Vancouver area, our largest market...

  • Page 19
    ... the United States. Shaw Business U.S. Inc. commenced revenue-generating operations in the United States in 2002. Its revenues for the year ended August 31, 2015 were not material. Government Regulations and Regulatory Developments Substantially all of the Company's Canadian business activities are...

  • Page 20
    ...a significant increase in the per subscriber rates payable for the retransmission of programming in distant signals. The Company has objected to the tariff on behalf of its cable and DTH satellite divisions and is participating in the current hearing. 18 Shaw Communications Inc. 2015 Annual Report

  • Page 21
    ... other public places. Under the Telecommunications Act, Shaw may do so with the consent of the municipality. New media and Internet The CRTC has issued a digital media exemption order requiring that Internet-based and mobile point-to-point broadcasting services not offer television programming on...

  • Page 22
    ... line to complete the full slate of analog to digital conversions. On August 14, 2015, Industry Canada confirmed its intent to proceed with repurposing some of the 600 MHz spectrum band for commercial mobile use and to jointly establish a new allotment plan in collaboration with the United States...

  • Page 23
    ... calculated before onetime items like restructuring costs, amortization (a non-cash expense) and interest. Operating income before restructuring costs and amortization is also one of the measures used by the investing community to value the business. 2015 Annual Report Shaw Communications Inc. 21

  • Page 24
    ... due to the common infrastructure while Business Infrastructure Services and Media are separately reported. Other items, including interest and cash taxes, are not generally directly attributable to a segment, and are reported on a consolidated basis. 22 Shaw Communications Inc. 2015 Annual Report

  • Page 25
    ... Financial Statements. Restated to reflect the change in segment reporting whereby residential and enterprise services that were included in the Cable and Satellite segments are now realigned into new Consumer and Business Network Services segments. 2015 Annual Report Shaw Communications Inc. 23

  • Page 26
    ... premise equipment revenue) and related subscription revenue. The Company determined that the upfront fees charged to customers do not constitute separate units of accounting; therefore, these revenue streams are assessed as an integrated package. 24 Shaw Communications Inc. 2015 Annual Report

  • Page 27
    ...excess cost will be recovered from future subscription revenues and that the investment by the customer in the equipment creates value through increased retention. Shaw Tracking equipment revenue and costs Shaw Tracking equipment revenue is recognized over the period of the related service contract...

  • Page 28
    ...activities directly relate to the planning and design of the construction of the distribution system. In addition, TNO devote considerable efforts towards the development of systems to support Digital Phone, WiFi, and projects related to new customer management, billing and operating support systems...

  • Page 29
    ... higher amortization expense in future periods or an impairment charge to write down the value of property, plant and equipment or other intangibles. Intangibles The excess of the cost of acquiring cable and satellite and media businesses over the fair value of related net identifiable tangible and...

  • Page 30
    ... to settle employee benefit obligations and is also used to calculate the interest income on plan assets. It is based on the yield of long-term, high-quality corporate fixed income investments closely matching the term of the estimated future cash flows and is reviewed and adjusted as changes are...

  • Page 31
    ... Board of Directors for services rendered, the Company transacts with companies related to certain Board members primarily for the purchase of remote control units, network programming and installation of equipment. NEW ACCOUNTING STANDARDS Shaw has adopted or will adopt a number of new accounting...

  • Page 32
    ... competitors to gain market share, will continue to increase. Consumer Internet High-speed Internet access services are principally provided through cable modem and digital subscriber line technology, and increasingly through fibre to the home. Shaw competes with a number of different types of ISPs...

  • Page 33
    ... only by SRDU operators. Business Infrastructure Services Shaw's hybrid IT services business operates in a highly competitive market that includes telecommunications companies, carriers, ISPs, managed services providers, large real estate investment trusts and other data centre operators, many of...

  • Page 34
    ... The Company does not maintain business interruption insurance covering damage or loss to one or more of the satellites as it believes the premium costs are uneconomic relative to the risk of satellite failure. Transponder capacity is available to the 32 Shaw Communications Inc. 2015 Annual Report

  • Page 35
    ... results. Programming costs are also one of the most significant expenses in our Media division. Increased competition in the television broadcasting industry and with online video providers for content, developments affecting producers and distributors of 2015 Annual Report Shaw Communications Inc...

  • Page 36
    ... approved on a quarterly basis by the Board of Directors. At the current approved dividend amount, the Company would pay approximately $565 million in common share dividends during fiscal 2016 (before taking into account the Company's dividend reinvestment plan ("DRIP"), as further described in...

  • Page 37
    ... of the current year the results reflect the addition of the new Business Infrastructure Services division upon acquisition of ViaWest on September 2, 2014. In the fourth quarter of 2015, net income increased by $67 million over the third quarter 2015 due to improved net other revenue items of...

  • Page 38
    ... in understanding the trend of quarterly revenue and operating income before restructuring costs and amortization for Consumer: 2015 Subscriber Statistics First Second Third Fourth First 2014 Second Third Fourth Video - Cable Video - Satellite Internet Digital phone lines (15,591) (35,967) (24...

  • Page 39
    ... and general corporate purposes. In April 2014 the Company announced changes to the structure of its operating divisions to improve overall efficiency while enhancing its ability to grow as the leading network and content experience company. Å Å 2015 Annual Report Shaw Communications Inc. 37

  • Page 40
    ... 2015, Shaw's residential and enterprise services are reorganized into new Consumer and Business units, respectively, with no changes to the Media division. Å The Company recorded restructuring costs of $58 million in fiscal 2014 associated with the approximately 400 management and non-customer...

  • Page 41
    ...growth in Business which was partially reduced by lower video subscribers, higher programming costs, increased operating costs related to the new Anik G1 satellite which launched in the third quarter of fiscal 2013 and higher employee related amounts. In addition, the 2013 fiscal year benefited from...

  • Page 42
    ...related to its interest in shomi, the subscription video-ondemand service launched in early November 2014. The equity loss includes amounts in respect of the development and launch of the business. During the year, Rogers Communications Inc. exercised its option to acquire the Company's AWS spectrum...

  • Page 43
    ... licenses and media assets, business acquisition costs, accretion of long-term liabilities and provisions, debt retirement costs, equity loss of a joint venture, impairment of goodwill and other losses as detailed in the Consolidated Statements of Income. 2015 Annual Report Shaw Communications Inc...

  • Page 44
    ... centres of expertise including technical service, sales and billing, loyalty care, technical field support, e-Care, payment solutions and satellite operations. The closure of the Edmonton contact centre and the downsizing of the Kelowna location were completed in the current year with customer care...

  • Page 45
    ... expense increases primarily related to employee hires in support of operational growth as well as certain administrative costs. During the current quarter the Company successfully launched a new phone product, "Smart Voice", which provides a unified communications solution to small businesses that...

  • Page 46
    ... delivery of news with the recent consolidation of the production of its national and international segments for the morning news shows and has implemented a streamlined process to deliver local late night and weekend newscasts into all markets. 44 Shaw Communications Inc. 2015 Annual Report

  • Page 47
    ... are now complete, included investment in new internal and external Calgary data centres, increasing network capacity, next generation delivery systems, back office infrastructure upgrades, and expediting the Shaw Go WiFi infrastructure build. Consumer and business network services Success-based...

  • Page 48
    Shaw Communications Inc. Management's Discussion and Analysis August 31, 2015 Business infrastructure services Capital investment of $152 million for the year is primarily related to growth related capital investment in core infrastructure and equipment to deploy customer solutions. The amounts ...

  • Page 49
    ... by an increase in funding of defined benefit pension plans and higher interest expense. The net change in non-cash working capital balances related to operations fluctuated over the comparative periods due to the timing of payment of current income taxes payable and accounts payable and accrued...

  • Page 50
    Shaw Communications Inc. Management's Discussion and Analysis August 31, 2015 Financing activities The changes in financing activities during 2015 and 2014 were as follows: (millions of Canadian dollars) 2015 2014 Bank loans - net borrowings ViaWest's credit facilities (net) and finance lease ...

  • Page 51
    ... Additional information relating to Shaw, including the Company's 2015 Annual Information Form can be found on SEDAR at www.sedar.com. COMPLIANCE WITH NYSE CORPORATE GOVERNANCE LISTING STANDARDS Disclosure of the Company's corporate governance practices which differ from the New York Stock Exchange...

  • Page 52
    Shaw Communications Inc. Management's Discussion and Analysis August 31, 2015 CERTIFICATION The Company's Chief Executive Officer and Chief Financial Officer have filed certifications regarding Shaw's disclosure controls and procedures and internal control over financial reporting. As at August 31, ...

  • Page 53
    .... ViaWest had assets and revenues representing approximately 12% and 4%, respectively, of the related Consolidated Financial Statement amounts as of and for the year ended August 31, 2015. Further information on ViaWest is included in Note 24 to the 2015 Annual Report Shaw Communications Inc...

  • Page 54
    .... ViaWest will be included in management's evaluation of internal controls over financial reporting for the fiscal year ended August 31, 2016. [Signed] [Signed] Brad Shaw Chief Executive Officer Vito Culmone Executive Vice President and Chief Financial Officer 52 Shaw Communications Inc. 2015...

  • Page 55
    ..., in accordance with the standards of the Public Company Accounting Oversight Board (United States), Shaw Communication Inc.'s internal control over financial reporting as of August 31, 2015, based on the criteria established in Internal Control - Integrated Framework issued by the Committee of...

  • Page 56
    ... of the Public Company Accounting Oversight Board (United States) To the Shareholders of Shaw Communications Inc. We have audited Shaw Communications Inc.'s internal control over financial reporting as at August 31, 2015, based on the criteria established in Internal Control - Integrated Framework...

  • Page 57
    ...of Canadian dollars] August 31, 2015 $ August 31, 2014 $ ASSETS Current Cash Accounts receivable [note 4] Inventories [note 5] Other current assets [note 6] Asset held for sale [note 3] Investments and other assets [notes 7 and 28] Property, plant and equipment [note 8] Other long-term assets [note...

  • Page 58
    Shaw Communications Inc. Consolidated Statements of Income Years ended August 31 [millions of Canadian dollars except per share amounts] 2015 $ 2014 $ Revenue [note 24] Operating, general and administrative expenses [note 21] Restructuring costs [notes 12 and 21] Amortization Deferred equipment ...

  • Page 59
    ... benefit plans Comprehensive income Comprehensive income attributable to: Equity shareholders Non-controlling interests in subsidiaries 880 887 6 (6) (3) 184 (74) 107 7 114 994 970 24 994 3 (5) (2) - - (4) (42) (46) 841 811 30 841 See accompanying notes 2015 Annual Report Shaw Communications...

  • Page 60
    ...dollars] Total Total equity Balance as at September 1, 2013 Net income Other comprehensive loss Comprehensive income Dividends Dividend reinvestment plan Shares issued under stock option plan Share...26) 235 4,413 887 (46) 841 (364) - 70 3 (26) 4,937 58 Shaw Communications Inc. 2015 Annual Report

  • Page 61
    ... (increase) to inventories Business acquisitions, net of cash acquired [note 3] Proceeds on sale of media assets [note 3] Additions to investments and other assets Proceeds on disposal of property, plant and equipment [notes 24 and 29] Proceeds on sale of wireless spectrum licenses, net of costs...

  • Page 62
    ... Services"); data centre colocation, cloud technology and managed IT solutions to businesses ("Business Infrastructure Services"); and programming content ("Media"). The Company was incorporated under the laws of the Province of Alberta on December 9, 1966 under the name Capital Cable Television...

  • Page 63
    ... and customer premise equipment revenue) and related subscription and service revenue. Upfront fees charged to customers do not constitute separate units of accounting, therefore these revenue streams are assessed as an integrated package. (i) Revenue Revenue from cable, Internet, Digital Phone...

  • Page 64
    ... sold to customers at cost or a subsidized price in order to expand the Company's customer base. Revenue from sales of satellite tracking hardware and costs of goods sold is deferred and recognized on a straight-line basis over the related service contract for monthly service charges for air time...

  • Page 65
    ... system Digital cable terminals and modems Satellite audio, video and data network equipment and DTH receiving equipment Transmitters, broadcasting and communication equipment Buildings Data centre infrastructure Data processing Other The Company reviews the estimates of lives and useful lives...

  • Page 66
    ... less costs to sell ("FVLCS") and its value in use ("VIU"). A CGU is the smallest identifiable group of assets that generate cash flows that are independent of the cash inflows from other assets or groups of assets. The Company's cash generating units are Cable, Satellite, Media and Data centres...

  • Page 67
    ...liabilities, except to the extent that they relate to a business combination or divestment, items recognized directly in equity or in other comprehensive income. The Company records interest and penalties related to income taxes in income tax expense. 2015 Annual Report Shaw Communications Inc. 65

  • Page 68
    Shaw Communications Inc. Notes to the Consolidated Financial Statements August 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] Tax credits and government grants Until August 31, 2014, the Company had access to a government program which supported ...

  • Page 69
    ... the impact of events and changes in circumstances that could result in a transfer at the end of each reporting period. Employee benefits The Company accrues its obligations under its employee benefit plans, net of plan assets. The cost of pensions and other retirement benefits earned by certain...

  • Page 70
    Shaw Communications Inc. Notes to the Consolidated Financial Statements August 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] The Company has an employee share purchase plan (the "ESPP") under which eligible employees may contribute to a maximum of...

  • Page 71
    ...in determining the Company's cash generating units for the impairment assessment of its indefinite-life intangible assets. The CGUs have been determined considering operating activities and asset management and are Cable, Satellite, Media and Data centres. 2015 Annual Report Shaw Communications Inc...

  • Page 72
    ...In connection with the transaction, the Company incurred $4 of acquisition related costs in fiscal 2014 for professional fees paid to lawyers, consultants and advisors. During the current year, the Company incurred additional acquisition related costs of $6. 70 Shaw Communications Inc. 2015 Annual...

  • Page 73
    ... to industry growth expectations and demand for data centre services as well as a strong management team and an assembled workforce. Current and long-term debt is comprised of amounts that were outstanding under ViaWest's credit facility, finance lease obligations in respect of certain equipment and...

  • Page 74
    Shaw Communications Inc. Notes to the Consolidated Financial Statements August 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] Asset dispositions Sale of wireless spectrum licenses to Rogers Communications Inc. ("Rogers") During 2013, the Company ...

  • Page 75
    ...canadian dollars except share and per share amounts] 6. OTHER CURRENT ASSETS 2015 $ 2014 $ Program rights Tax indemnity Prepaid expenses and other 15 1 62 78 17 1 55 73 7. INVESTMENTS AND OTHER ASSETS 2015 $ 2014 $ Publicly traded company Investments in private entities Investment in a joint...

  • Page 76
    ... distribution system Digital cable terminals and modems Satellite audio, video and data network and DTH receiving equipment Transmitters, broadcasting, communications and production equipment Land and buildings Data centre infrastructure, data processing and other Assets under construction 4,984...

  • Page 77
    ... of development of a certain Internet Protocol Television ("IPTV") platform which forms part of the common infrastructure for the Consumer and Business Network Services divisions. 9. OTHER LONG-TERM ASSETS 2015 $ 2014 $ Equipment costs subject to a deferred revenue arrangement Customer equipment...

  • Page 78
    ...DTH and satellite services Television broadcasting Program rights and advances Goodwill Non-regulated satellite services Cable and telecommunications systems Television broadcasting Data centre services Wireless spectrum licenses Other intangibles Software Customer relationships Trademark and brands...

  • Page 79
    ...in the Satellite cash generating unit. The Company estimated the recoverable amount using a discounted cash flow analysis based on the most recent estimates of future operating results which are reflective of long-term pressures as customers migrate from satellite based tracking to wireless tracking...

  • Page 80
    .... ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2015 $ 2014 $ Trade Program rights CRTC benefit obligations Accrued liabilities Accrued network fees Interest and dividends Related parties [note 27] 81 79 28 339 109 229 22 887 44 74 30 335 107 215 23 828 78 Shaw Communications Inc. 2015 Annual Report

  • Page 81
    ... units to improve overall efficiency while enhancing its ability to grow as the leading network and content experience company. In connection with the restructuring of its operations, approximately 400 management and non-customer facing roles were affected by the organizational changes. During 2015...

  • Page 82
    .... On January 31, 2014, the Company issued $500 senior notes at a rate of 4.35% due January 31, 2024 and $300 floating rate senior rates due February 1, 2016. The $300 senior notes bear interest at an annual rate equal to three month CDOR plus 0.69%. 80 Shaw Communications Inc. 2015 Annual Report

  • Page 83
    ...(the "Partnership") The Company has a 33.33% interest in the Partnership which built the Shaw Tower project with office/retail space and living/ working space in Vancouver, BC. In the fall of 2004, the commercial construction of the building was completed and at that time, the Partnership issued ten...

  • Page 84
    ... Post retirement liabilities [note 26] Share-based awards Program rights liabilities Other 119 23 22 11 5 6 186 174 48 18 - 5 6 251 15. DEFERRED CREDITS 2015 $ 2014 $ IRU prepayments Equipment revenue Connection fee and installation revenue Proceeds on wireless spectrum license option [note...

  • Page 85
    ... A Shares. Changes in Class A Share capital and Class B Non-Voting Share capital in 2015 and 2014 are as follows: Class A Shares Number $ Class B Non-Voting Shares Number $ September 1, 2013 Class A share conversions Stock option exercises Dividend reinvestment plan August 31, 2014 Stock option...

  • Page 86
    Shaw Communications Inc. Notes to the Consolidated Financial Statements August 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] 17. SHARE-BASED COMPENSATION AND AWARDS Stock option plan Under a stock option plan, directors, officers, employees and ...

  • Page 87
    Shaw Communications Inc. Notes to the Consolidated Financial Statements August 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] Deferred share unit plan The Company has a DSU plan for its Board of Directors whereby directors can elect to receive ...

  • Page 88
    ... Shares also represent a series of Class 2 preferred shares and holders will be entitled to receive cumulative quarterly dividends, as and when declared by the Company's Board of Directors, at a rate set quarterly equal to the then current three-month Government of Canada Treasury Bill yield...

  • Page 89
    ...reclassified to income Unrealized loss on available-for-sale investment Foreign currency translation adjustments Items that will not be subsequently reclassified to income Remeasurements on employee benefit plans (5) 110 (124) (19) (2) - (131) (133) 2015 Annual Report Shaw Communications Inc. 87

  • Page 90
    Shaw Communications Inc. Notes to the Consolidated Financial Statements August 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] 21. OPERATING, GENERAL AND ADMINISTRATIVE EXPENSES AND RESTRUCTURING COSTS 2015 $ 2014 $ Employee salaries and benefits ...

  • Page 91
    ... dollars except share and per share amounts] Significant changes recognized to deferred income tax assets (liabilities) are as follows: Broadcast rights, licenses, Property, plant customer and equipment relationships, and software trademark Partnership assets and brands income $ $ $ Foreign exchange...

  • Page 92
    ... data centre colocation, cloud and managed services to North American businesses. All of the Company's operations are substantially located in Canada with the exception of ViaWest which is located in the United States. 2015 $ 2014 $ Revenue Consumer Business Network Services Business Infrastructure...

  • Page 93
    ... maintenance and license fees for each transponder from the time the satellite becomes operational for a period of 15 years. The Company has various long-term operating commitments as follows: $ (ii) 2016 2017 - 2020 Thereafter 635 948 388 1,971 2015 Annual Report Shaw Communications Inc. 91

  • Page 94
    ... provisions would require any material cash payment. The Company indemnifies its directors and officers against any and all claims or losses reasonably incurred in the performance of their service to the Company to the extent permitted by law. 92 Shaw Communications Inc. 2015 Annual Report

  • Page 95
    ...a long time frame. This means that assumptions used can have a material impact on the statements of financial position and comprehensive income because in practice, future experience of the plans may not be in line with the selected assumptions. (ii) 2015 Annual Report Shaw Communications Inc. 93

  • Page 96
    ... 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] Non-registered pension plans The Company provides a supplemental executive retirement plan ("SERP") for certain of its senior executives. Benefits under this plan are based on the employees' length...

  • Page 97
    ... benefits expense, is comprised of the following components: 2015 Total $ 2014 Total $ SERP $ ERP $ SERP $ ERP $ Current service cost Interest cost Interest income Pension expense 7 20 (14) 13 2 - - 2 9 20 (14) 15 9 19 (15) 13 3 - - 3 12 19 (15) 16 2015 Annual Report Shaw Communications...

  • Page 98
    Shaw Communications Inc. Notes to the Consolidated Financial Statements August 31, 2015 and 2014 [all amounts in millions of canadian dollars except share and per share amounts] Registered pension plans The Company has a number of funded defined benefit pension plans which provide pension benefits ...

  • Page 99
    ... benefit plan expense, which is included in employee salaries and benefits expense, is comprised of the following components: 2015 $ 2014 $ Current service cost Interest cost Interest income Administrative expenses Pension expense 6 7 (7) 1 7 5 7 (7) 1 6 2015 Annual Report Shaw Communications...

  • Page 100
    ... company owned and controlled by JR Shaw and has a Board of Directors which includes JR Shaw and members of his family (the "Shaw Family Group"). The Shaw Family Group includes Directors and Senior Executive and Corporate Officers of the Company. 98 Shaw Communications Inc. 2015 Annual Report

  • Page 101
    ... responsibility for planning, directing and controlling the activities of the Company. Compensation The compensation expense of key management personnel and Board of Directors is as follows: 2015 $ 2014 $ Short-term employee benefits Post-employment pension benefits Retirement benefits Share-based...

  • Page 102
    ...quoted market prices in an active market and whose fair value cannot be readily measured are carried at cost. No published market exists for such investments. These equity investments have been made as they are considered to have the potential to provide future benefit to the Company and accordingly...

  • Page 103
    .... Market risk Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate as a result of changes in market prices, including foreign exchange and interest rates, the Company's share price and market price of publicly traded investments. 2015 Annual Report Shaw...

  • Page 104
    ... is past due, whether or not the customer continues to receive service, the Company's past collection history and changes in business circumstances. As at August 31, 2015, $121 (August 31, 2014 - $129) of accounts receivable is considered to be 102 Shaw Communications Inc. 2015 Annual Report

  • Page 105
    ... of canadian dollars except share and per share amounts] past due, defined as amounts outstanding past normal credit terms and conditions. Uncollectible accounts receivable are charged against the allowance account based on the age of the account and payment history. The Company believes that...

  • Page 106
    ... exclude the following non-cash transactions: 2015 $ 2014 $ Issuance of Class B Non-Voting Shares: Dividend reinvestment plan [note 19] Non-monetary exchange: Exchange of fibre assets for network capacity leases Lease transactions 166 - 2 146 5 5 104 Shaw Communications Inc. 2015 Annual Report

  • Page 107
    ... outstanding shares in INetU, Inc. for US $162. INetU, Inc. is a solutions provider for public, private and hybrid cloud environments in addition to offering managed security and compliance services. The transaction is expected to close by December 31, 2015. 2015 Annual Report Shaw Communications...

  • Page 108
    ... New York Stock Exchange under the symbol SJR. The Series A Preferred Shares are listed on the Toronto Stock Exchange under the symbol SJR.PR.A. Trading Range of Class B Non-Voting Shares on the Toronto Stock Exchange Quarter High Close Low Close Total Volume September 1, 2014 to August 31, 2015...

  • Page 109
    ....shaw.ca Information concerning Shaw's compliance with the corporate governance listing standards of the New York Stock Exchange is available in the investors section on Shaw's website, www.shaw.ca INTERNET HOME PAGE Shaw's Annual Report, Annual Information Form, Quarterly Reports, Press Releases...

  • Page 110