Shaw 2015 Annual Report Download - page 79

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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]
Intangibles subject to amortization are as follows:
August 31, 2015 August 31, 2014
Cost
$
Accumulated
amortization
$
Net book
value
$
Cost
$
Accumulated
amortization
$
Net book
value
$
Program rights and advances 671 376 295 699 389 310
Software 241 150 91 227 139 88
Software under construction 184 – 184 168 – 168
Customer relationships 514 42 472 87 8 79
1,610 568 1,042 1,181 536 645
Less current portion of program rights 15 17
1,027 628
The changes in the carrying amount of intangibles subject to amortization are as follows:
Program rights
and advances
$
Software
$
Software under
construction
$
Customer
relationships
$
Total
$
September 1, 2013 300 108 108 85 601
Additions 414 20 64 – 498
Transfers – 4 (4) – –
Amortization (404) (43) – (6) (453)
Write-down – (1) – – (1)
August 31, 2014 310 88 168 79 645
Additions 390 43 37 – 470
Transfers – 3 (3) – –
Business acquisition [note 3] – 5 – 355 360
Amortization (405) (49) – (32) (486)
Write-down – – (18) – (18)
Foreign currency translation – 1 – 70 71
August 31, 2015 295 91 184 472 1,042
Impairment testing of indefinite-life intangibles and goodwill
The Company conducted its annual impairment test on goodwill and indefinite-life intangibles as at March 1, 2015 and as a
result, an impairment charge of $15 was recorded with respect to goodwill associated with the Tracking operations 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. The recoverable amount of the other cash generating units exceeded their carrying
value.
A hypothetical decline of 10% in the recoverable amount of the broadcast rights and licenses for each of the Cable, Satellite
and Media cash generating units as at March 1, 2015 would not result in any impairment loss. The data centre cash generating
unit was created with the acquisition of ViaWest. A hypothetical decline of 10% in the recoverable amount of the data centre
cash generating unit as at March 1, 2015 would result in an impairment loss and is reflective of the Company acquiring
ViaWest at fair value on September 2, 2014. A 1% increase in the discount rate or 1% decrease in the terminal growth rate
would cause the carrying amount of the Data centres CGU to exceed its recoverable amount by approximately $200 and $150,
respectively. In order for the CGU’s recoverable amount to be equal to the carrying amount and holding all other assumptions
2015 Annual Report Shaw Communications Inc. 77