Shaw Communications Inc.
a predetermined incremental charge on a monthly basis. The significant growth in handset sales was primarily related to the introduction of the iPhone to the Companys handset lineup.
Investments and other assets increased by $10 million primarily due to equity income and other comprehensive income of associates related to the
Companys investment in Corus. Property, plant and equipment increased $132 million due to capital investments in excess of amortization.
Current liabilities increased $31 million during the period due to an increase in provisions of $207 million, partially offset by decreases in
accounts payable and accrued liabilities of $58 million, income taxes payable of $76 million, and liabilities held for sale of $39 million. The increase in current provisions was mainly due to the restructuring costs related to TBT.
In connection with the VDP, the Company recorded $417 million restructuring charge primarily related to severance and other related costs, of which $203 million is included in current provisions and $198 million is included in
long-term provisions. Income taxes payable decreased due to normal course tax installment payments, partially offset by the current period provision. Accounts payable and accruals decreased due to the timing of payment and fluctuations in various
payables including capital expenditures and network fees. Liabilities held for sale as at August 31, 2017 included the liabilities of the Shaw Tracking business, which was sold on September 15, 2017.
Long-term debt increased $10 million due to an increase in the Burrard Landing Lot 2 Holdings Partnership mortgage. The additional loan matures on
November 1, 2024 and bears interest at 4.14% compounded semi-annually.
Other long-term liabilities decreased $84 million during the quarter
primarily due to a remeasurement of the Companys defined benefit plan related to the effect of experience adjustments due to changes in demographic assumptions. The cost and related accrued benefit obligation of the Companys
non-registered
pension plans are determined using actuarial valuations. The actuarial valuations involve estimates and actuarial assumptions including discount rates and rate of compensation increase (financial
assumptions) as well as mortality rates and retirement rates (demographic assumptions). Due to the long-term nature of the
non-registered
pension plans, such estimates are subject to significant uncertainty.
Remeasurements related to the effect of experience adjustments arise when the
non-registered
pension plans experience differs from the experience expected using the actuarial assumptions, such as
mortality and retirement rates.
Shareholders equity decreased $144 million due to a decrease in retained earnings of $351 million and
contributed surplus of $2 million, which was offset by an increase in share capital of $137 million and accumulated other comprehensive income of $73 million. Share capital increased due to the issuance of 5,055,652 Class B
non-voting
participating shares (Class B
Non-Voting
Shares) under the Companys option plan and Dividend Reinvestment Plan (DRIP). Retained
earnings decreased due to dividends of $301 million and current year loss of $50 million. Accumulated other comprehensive loss decreased due to the
re-measurement
recorded on employee benefit plans
and a change in unrealized fair value of derivatives.
As at March 31, 2018, there were 480,180,535 Class B
Non-Voting
Shares, 10,012,393 Series A Shares, 1,987,607 Series B Shares and 22,420,064 Class A Shares issued and outstanding. As at March 31, 2018, 10,395,580 Class B
Non-Voting
Shares were issuable on exercise of outstanding options. Shaw is traded on the Toronto and New York stock exchanges and is included in the S&P/TSX 60 Index (Trading Symbols: TSX SJR.B,
SJR.PR.A, SJR.PR.B, NYSE SJR, and TSXV SJR.A). For more information, please visit www.shaw.ca.
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