Shaw 2015 Annual Report Download - page 107

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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]
30. CAPITAL STRUCTURE MANAGEMENT
The Company’s objectives when managing capital are:
(i) to maintain a capital structure which optimizes the cost of capital, provides flexibility and diversity of funding sources
and timing of debt maturities, and adequate anticipated liquidity for organic growth and strategic acquisitions;
(ii) to maintain compliance with debt covenants; and
(iii) to manage a strong and efficient capital base to maintain investor, creditor and market confidence.
The Company defines capital as comprising all components of shareholders’ equity (other than non-controlling interests and
amounts in accumulated other comprehensive income/loss), long-term debt (including the current portion thereof), and bank
indebtedness less cash and cash equivalents.
August 31, 2015
$
August 31, 2014
$
Cash and cash equivalents (398) (637)
Long-term debt repayable at maturity 5,726 4,740
Share capital 3,500 3,182
Contributed surplus 45 64
Retained earnings 1,883 1,589
10,756 8,938
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk
characteristics of underlying assets. The Company may also from time to time change or adjust its objectives when managing
capital in light of the Company’s business circumstances, strategic opportunities, or the relative importance of competing
objectives as determined by the Company. There is no assurance that the Company will be able to meet or maintain its currently
stated objectives.
On December 5, 2014 Shaw received the approval of the TSX to renew its normal course issuer bid to purchase its Class B
Non-Voting Shares for a further one year period. The Company is authorized to acquire up to 20,000,000 Class B Non-Voting
Shares during the period December 9, 2014 to December 8, 2015.
The Company’s credit facilities are subject to covenants which include maintaining minimum or maximum financial ratios,
including total debt to operating cash flow/adjusted earnings before interest, taxes, depreciation and amortization, and
operating cash flow to fixed charges. At August 31, 2015, the Company is in compliance with these covenants and based on
current business plans and economic conditions, the Company is not aware of any condition or event that would give rise to
non-compliance with the covenants.
The Company’s overall capital structure management strategy remains unchanged from the prior year.
31. SUBSEQUENT EVENT
On November 16, 2015, ViaWest entered into an agreement to acquire 100% of the 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 Inc. 105