Shaw 2015 Annual Report Download - page 73

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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]
The purchase consideration consisted of $898 of cash and issuance of share-based awards of $8. A summary of net assets and
allocation of consideration is as follows:
$
Net assets acquired at assigned fair values
Cash and cash equivalents 5
Receivables 10
Other current assets 5
Property and equipment 311
Other long-term assets 2
Intangibles(1) 404
Goodwill, not deductible for tax(2) 674
1,411
Current liabilities 16
Current debt(3) 7
Deferred income taxes 76
Long-term debt(3) 406
906
(1) Intangibles include a trade name, customer relationships and software assets.
(2) Goodwill comprises the value of upside and expansion potential due to industry growth expectations and demand for data
centre services as well as a strong management team and an assembled workforce.
(3) 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 amounts owing to landlords in respect of financing leasehold
improvements.
Other
Effective June 30, 2015, ViaWest acquired 100% of the shares of AppliedTrust Engineering, Inc. (“AppliedTrust”), a provider
of security, compliance, DevOps and infrastructure consulting services to a wide range of clients. AppliedTrust’s capabilities
augment the ViaWest platform with fast enablement of secure hybrid services including IT assessment, migration, compliance
consulting, cloud readiness and deeper application support. The purchase consideration consisted of $9 in cash and contingent
consideration of $2.
A summary of net assets and preliminary allocation of consideration is as follows:
$
Net assets acquired at assigned fair values
Receivables 1
Goodwill, not deductible for tax(1) 10
11
(1) Goodwill comprises the estimated economic value of providing enhanced professional services offerings, growth
expectations as well as an assembled workforce with deep expertise in risk management and compliance consulting
services.
2015 Annual Report Shaw Communications Inc. 71