Shaw 2015 Annual Report Download - page 102

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]
Other related parties
The Company has entered into certain transactions and agreements in the normal course of business with certain of its related
parties. These transactions are measured at the exchange amount, which is the amount of consideration established and agreed
to by the related parties.
Corus
The Company and Corus are subject to common voting control. During the year, network fees of $113 (2014 – $120),
advertising fees of $1 (2014 – $1) and programming fees of $1 (2014 – $1) were paid to various Corus subsidiaries and
entities subject to significant influence. In addition, the Company provided administrative, advertising and other services for $1
(2014 – $1), uplink of television signals for $6 (2014 – $5), Internet services and lease of circuits for $1 (2014 – $1) and
programming content of $2 (2014 – $1). At August 31, 2015, the Company had a net of $18 owing in respect of these
transactions (2014 – $20) and commitments in respect of network program agreements of $7 which are included in the
amounts disclosed in note 25.
The sale of the Company’s two French-language channels, Historia and Series+, to Corus closed in 2014 (see note 3). In
conjunction with the closing, the Company settled the non-interest bearing promissory note of $48 that was owing to Corus in
respect of ABC Spark and Food Canada Network transactions that had closed in 2013.
The Company provided Corus with television advertising spots in return for radio and television advertising. No monetary
consideration was exchanged for these transactions and no amounts were recorded in the accounts.
Burrard Landing Lot 2 Holdings Partnership
During the year, the Company paid $12 (2014 – $10) to the Partnership for lease of office space in Shaw Tower. Shaw Tower,
located in Vancouver, BC, is the Company’s headquarters for its lower mainland operations. At August 31, 2015, the Company
had a remaining commitment of $93 in respect of the office space lease which is included in the amounts disclosed in note
25.
Joint arrangement
During the year, the Company providing programming content and advertising services of $18 and paid $6 in subscriber fees.
At August 31, 2015, the Company had a net receivable of $3 in respect of these transactions.
28. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Fair values
The fair value of financial instruments has been determined as follows:
(i) Current assets and current liabilities
The fair value of financial instruments included in current assets and current liabilities approximates their carrying value
due to their short-term nature.
(ii) Investments and other assets and Other long-term assets
The fair value of publicly traded investments is determined by quoted market prices. Investments in private entities
which do not have 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, the Company has no current
intention to dispose of these investments in the near term. The fair value of long-term receivables approximates their
carrying value as they are recorded at the net present values of their future cash flows, using an appropriate discount
rate.
100 Shaw Communications Inc. 2015 Annual Report