Shaw 2015 Annual Report Download - page 80

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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]
constant, the discount rate would have to be 8.75% or terminal growth rate would have to be 6%. These sensitivities are
indicative only and should be considered with caution, as the effect of the variation in each assumption on the estimated
recoverable amount is calculated in isolation without changing any other assumptions. The extent of any such impairment loss
would be determined after incorporating any consequential effects of that change on estimated operating income before
restructuring costs and amortization and on other factors. Any changes in economic conditions since the impairment testing
conducted as at March 1, 2015 do not represent events or changes in circumstance that would be indicative of impairment at
August 31, 2015.
Significant estimates inherent to this analysis include discount rates and the terminal value. At March 1, 2015, the estimates
that have been utilized in the impairment tests reflect any changes in market conditions and are as follows:
Terminal value
Post-tax
discount rate Terminal growth rate
Terminal operating
income before
restructuring costs and
amortization multiple
Cable 8.0% 1.0% 6.0X
Satellite 8.5% 0.0% 5.0X
Media 8.5% 0.0% 6.5X
Data centres 8.5% 6.3% 10.0X
A sensitivity analysis of significant estimates is conducted as part of every impairment test. With respect to the impairment
tests performed in the third quarter, the estimated decline in recoverable amount for the sensitivity of significant estimates is as
follows:
Estimated decline in recoverable amount
Terminal value
1% increase in
discount rate
1% decrease in
terminal growth rate
0.5 times decrease in
terminal operating
income before
restructuring costs and
amortization multiple
Cable 8.0% 5.0% 3.0%
Satellite 7.0% n/a 3.0%
Media 7.0% n/a 2.0%
Data centres 19.0% 16.0% 2.0%
11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
2015 2014
$$
Trade 81 44
Program rights 79 74
CRTC benefit obligations 28 30
Accrued liabilities 339 335
Accrued network fees 109 107
Interest and dividends 229 215
Related parties [note 27] 22 23
887 828
78 Shaw Communications Inc. 2015 Annual Report