ROGERS COMMUNICATIONS INC. |
||||
|
By:
|
/s/ “Glenn Brandt” |
||
Name: | Glenn Brandt | |||
Title: | Chief Financial Officer | |||
Exhibit Number
|
Description of Document
|
|
Shaw Communications Inc.
|
Exhibit 99.1
|
(millions of Canadian dollars)
|
February 28, 2023
|
August 31, 2022
|
||||||
ASSETS
|
||||||||
Current
|
||||||||
Cash and cash equivalents
|
280
|
421
|
||||||
Accounts receivable
|
356
|
332
|
||||||
Income taxes recoverable
|
89
|
35
|
||||||
Inventories
|
112
|
92
|
||||||
Other current assets [note 4]
|
371
|
360
|
||||||
Current portion of contract assets [note 14]
|
60
|
63
|
||||||
1,268
|
1,303
|
|||||||
Investments and other assets [notes 5 and 19]
|
68
|
71
|
||||||
Property, plant and equipment
|
5,823
|
5,883
|
||||||
Other long-term assets
|
251
|
208
|
||||||
Deferred income tax assets
|
3
|
2
|
||||||
Intangibles [note 7]
|
7,907
|
7,998
|
||||||
Goodwill
|
280
|
280
|
||||||
Contract assets [note 14]
|
23
|
23
|
||||||
15,623
|
15,768
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current
|
||||||||
Short-term borrowings [note 9]
|
200
|
200
|
||||||
Accounts payable and accrued liabilities
|
719
|
959
|
||||||
Provisions [note 10]
|
56
|
45
|
||||||
Current portion of contract liabilities [note 14]
|
196
|
200
|
||||||
Current portion of long-term debt [notes 11 and 19]
|
1,000
|
1
|
||||||
Current portion of lease liabilities [note 8]
|
112
|
113
|
||||||
2,283
|
1,518
|
|||||||
Long-term debt [notes 11 and 19]
|
3,554
|
4,552
|
||||||
Lease liabilities [note 8]
|
961
|
1,017
|
||||||
Other long-term liabilities
|
11
|
8
|
||||||
Provisions [note 10]
|
83
|
81
|
||||||
Deferred credits
|
367
|
373
|
||||||
Contract liabilities [note 14]
|
24
|
20
|
||||||
Deferred income tax liabilities
|
1,956
|
1,962
|
||||||
9,239
|
9,531
|
|||||||
Shareholders' equity [notes 12 and 17]
|
||||||||
Common and preferred shareholders
|
6,384
|
6,237
|
||||||
15,623
|
15,768
|
|||||||
See accompanying notes.
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
(millions of Canadian dollars)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Revenue [notes 3 and 14]
|
1,340
|
1,359
|
2,709
|
2,745
|
||||||||||||
Operating, general and administrative expenses [note 15]
|
(720
|
)
|
(727
|
)
|
(1,471
|
)
|
(1,480
|
)
|
||||||||
Amortization:
|
||||||||||||||||
Deferred equipment revenue
|
1
|
3
|
3
|
5
|
||||||||||||
Deferred equipment costs
|
(2
|
)
|
(9
|
)
|
(8
|
)
|
(19
|
)
|
||||||||
Property, plant and equipment, intangibles and other
|
(317
|
)
|
(299
|
)
|
(624
|
)
|
(591
|
)
|
||||||||
Operating income
|
302
|
327
|
609
|
660
|
||||||||||||
Amortization of financing costs – long-term debt
|
1
|
-
|
-
|
(1
|
)
|
|||||||||||
Interest expense [note 11]
|
(64
|
)
|
(65
|
)
|
(127
|
)
|
(130
|
)
|
||||||||
Impairment of assets [note 7]
|
(90
|
)
|
-
|
(90
|
)
|
-
|
||||||||||
Other gains (losses) [note 16]
|
(10
|
)
|
(5
|
)
|
(26
|
)
|
(9
|
)
|
||||||||
Income before income taxes
|
139
|
257
|
366
|
520
|
||||||||||||
Current income tax expense [note 3]
|
46
|
83
|
97
|
173
|
||||||||||||
Deferred income tax (recovery) expense
|
(14
|
)
|
(22
|
)
|
(7
|
)
|
(45
|
)
|
||||||||
Net income
|
107
|
196
|
276
|
392
|
||||||||||||
Net income attributable to:
|
||||||||||||||||
Equity shareholders
|
107
|
196
|
276
|
392
|
||||||||||||
Earnings per share: [note 13]
|
||||||||||||||||
Basic
|
0.21
|
0.39
|
0.55
|
0.79
|
||||||||||||
Diluted
|
0.21
|
0.39
|
0.55
|
0.78
|
||||||||||||
See accompanying notes.
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
(millions of Canadian dollars)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Net income
|
107
|
196
|
276
|
392
|
||||||||||||
Other comprehensive income [note 17]
|
||||||||||||||||
Items that may subsequently be reclassified to income:
|
||||||||||||||||
Change in unrealized fair value of derivatives designated as cash flow hedges
|
1
|
(1
|
)
|
3
|
1
|
|||||||||||
Adjustment for hedged items recognized in the period
|
-
|
-
|
(1
|
)
|
1
|
|||||||||||
1
|
(1
|
)
|
2
|
2
|
||||||||||||
Items that will not subsequently be reclassified to income:
|
||||||||||||||||
Remeasurements on employee benefit plans
|
1
|
19
|
3
|
31
|
||||||||||||
2
|
18
|
5
|
33
|
|||||||||||||
Comprehensive income
|
109
|
214
|
281
|
425
|
||||||||||||
Comprehensive income attributable to:
|
||||||||||||||||
Equity shareholders
|
109
|
214
|
281
|
425
|
||||||||||||
See accompanying notes.
|
Six months ended February 28, 2023
|
||||||||||||||||||||
Attributable to equity shareholders
|
||||||||||||||||||||
(millions of Canadian dollars)
|
Share
capital
|
Contributed
surplus
|
Retained
earnings
|
Accumulated
other
comprehensive
loss
|
Total
equity |
|||||||||||||||
Balance as at September 1, 2022
|
4,217
|
27
|
2,000
|
(7
|
)
|
6,237
|
||||||||||||||
Net income
|
-
|
-
|
276
|
-
|
276
|
|||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
5
|
5
|
|||||||||||||||
Comprehensive income
|
-
|
-
|
276
|
5
|
281
|
|||||||||||||||
Dividends
|
-
|
-
|
(149
|
)
|
-
|
(149
|
)
|
|||||||||||||
Shares issued under stock option plan
|
16
|
(1
|
)
|
-
|
-
|
15
|
||||||||||||||
Balance as at February 28, 2023
|
4,233
|
26
|
2,127
|
(2
|
)
|
6,384
|
Six months ended February 28, 2022
|
||||||||||||||||||||
Attributable to equity shareholders
|
||||||||||||||||||||
(millions of Canadian dollars)
|
Share
capital
|
Contributed
surplus
|
Retained
earnings
|
Accumulated
other
comprehensive
loss
|
Total
equity
|
|||||||||||||||
Balance as at September 1, 2021
|
4,199
|
27
|
1,876
|
(59
|
)
|
6,043
|
||||||||||||||
Net income
|
-
|
-
|
392
|
-
|
392
|
|||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
33
|
33
|
|||||||||||||||
Comprehensive income
|
-
|
-
|
392
|
33
|
425
|
|||||||||||||||
Dividends
|
-
|
-
|
(296
|
)
|
-
|
(296
|
)
|
|||||||||||||
Shares issued under stock option plan
|
7
|
(1
|
)
|
-
|
-
|
6
|
||||||||||||||
Share-based compensation
|
-
|
1
|
-
|
-
|
1
|
|||||||||||||||
Balance as at February 28, 2022
|
4,206
|
27
|
1,972
|
(26
|
)
|
6,179
|
||||||||||||||
See accompanying notes.
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
(millions of Canadian dollars)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
OPERATING ACTIVITIES
|
||||||||||||||||
Funds flow from operations [note 18]
|
502
|
496
|
989
|
987
|
||||||||||||
Net change in non-cash balances
|
(21
|
)
|
(9
|
)
|
(168
|
)
|
(138
|
)
|
||||||||
481
|
487
|
821
|
849
|
|||||||||||||
INVESTING ACTIVITIES
|
||||||||||||||||
Additions to property, plant and equipment [note 3]
|
(278
|
)
|
(208
|
)
|
(544
|
)
|
(415
|
)
|
||||||||
Additions to equipment costs (net) [note 3]
|
(5
|
)
|
(4
|
)
|
(10
|
)
|
(8
|
)
|
||||||||
Additions to other intangibles [note 3]
|
(42
|
)
|
(46
|
)
|
(73
|
)
|
(86
|
)
|
||||||||
Net additions to investments and other assets
|
1
|
(1
|
)
|
1
|
(1
|
)
|
||||||||||
Proceeds on disposal of property, plant and equipment
|
2
|
3
|
5
|
4
|
||||||||||||
(322
|
)
|
(256
|
)
|
(621
|
)
|
(506
|
)
|
|||||||||
FINANCING ACTIVITIES
|
||||||||||||||||
Repayment of long-term debt [notes 11 and 19]
|
(1
|
)
|
-
|
(1
|
)
|
-
|
||||||||||
Payment of lease liabilities [note 8]
|
(28
|
)
|
(28
|
)
|
(59
|
)
|
(58
|
)
|
||||||||
Issue of Class B Shares [note 12]
|
11
|
4
|
15
|
7
|
||||||||||||
Dividends paid on Class A Shares and Class B Shares
|
(148
|
)
|
(148
|
)
|
(296
|
)
|
(296
|
)
|
||||||||
(166
|
)
|
(172
|
)
|
(341
|
)
|
(347
|
)
|
|||||||||
Increase (decrease) in cash
|
(7
|
)
|
59
|
(141
|
)
|
(4
|
)
|
|||||||||
Cash, beginning of the period
|
287
|
292
|
421
|
355
|
||||||||||||
Cash, end of the period
|
280
|
351
|
280
|
351
|
||||||||||||
See accompanying notes.
|
1. |
CORPORATE INFORMATION
|
2. |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES
|
3. |
BUSINESS SEGMENT INFORMATION
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenue
|
||||||||||||||||
Wireline
|
1,018
|
1,040
|
2,045
|
2,097
|
||||||||||||
Wireless
|
326
|
323
|
671
|
655
|
||||||||||||
1,344
|
1,363
|
2,716
|
2,752
|
|||||||||||||
Intersegment eliminations
|
(4
|
)
|
(4
|
)
|
(7
|
)
|
(7
|
)
|
||||||||
1,340
|
1,359
|
2,709
|
2,745
|
|||||||||||||
Adjusted EBITDA(1)
|
||||||||||||||||
Wireline
|
494
|
509
|
990
|
1,033
|
||||||||||||
Wireless
|
126
|
123
|
248
|
232
|
||||||||||||
620
|
632
|
1,238
|
1,265
|
|||||||||||||
Amortization
|
(318
|
)
|
(305
|
)
|
(629
|
)
|
(605
|
)
|
||||||||
Operating income
|
302
|
327
|
609
|
660
|
||||||||||||
Current taxes
|
||||||||||||||||
Operating
|
50
|
84
|
106
|
174
|
||||||||||||
Other/non-operating
|
(4
|
)
|
(1
|
)
|
(9
|
)
|
(1
|
)
|
||||||||
46
|
83
|
97
|
173
|
(1) |
Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers; the Company defines adjusted EBITDA as revenues less
operating, general and administrative expenses.
|
Capital expenditures
|
||||||||||||||||
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Capital expenditures accrual basis
|
||||||||||||||||
Wireline
|
228
|
214
|
497
|
400
|
||||||||||||
Wireless
|
31
|
30
|
60
|
69
|
||||||||||||
259
|
244
|
557
|
469
|
|||||||||||||
Equipment costs (net of revenue)
|
||||||||||||||||
Wireline
|
5
|
5
|
10
|
9
|
||||||||||||
Capital expenditures and equipment costs (net)
|
||||||||||||||||
Wireline
|
233
|
219
|
507
|
409
|
||||||||||||
Wireless
|
31
|
30
|
60
|
69
|
||||||||||||
264
|
249
|
567
|
478
|
|||||||||||||
Reconciliation to Consolidated Statements of Cash Flows
|
||||||||||||||||
Additions to property, plant and equipment
|
278
|
208
|
544
|
415
|
||||||||||||
Additions to equipment costs (net)
|
5
|
4
|
10
|
8
|
||||||||||||
Additions to other intangibles
|
42
|
46
|
73
|
86
|
||||||||||||
Total of capital expenditures and equipment costs (net) per
Consolidated Statements of Cash Flows
|
325
|
258
|
627
|
509
|
||||||||||||
Increase/(decrease) in working capital and other liabilities related to capital expenditures
|
(59
|
)
|
(6
|
)
|
(55
|
)
|
(27
|
)
|
||||||||
Increase/(decrease) in working capital and other liabilities related to ARO
|
-
|
-
|
-
|
-
|
||||||||||||
Less: Proceeds on disposal of property, plant and equipment
|
(2
|
)
|
(3
|
)
|
(5
|
)
|
(4
|
)
|
||||||||
Total capital expenditures and equipment costs (net) reported
by segments
|
264
|
249
|
567
|
478
|
||||||||||||
4. |
OTHER CURRENT ASSETS
|
February 28, 2023
|
August 31, 2022
|
|||||||
Prepaid expenses
|
117
|
113
|
||||||
Costs incurred to obtain or fulfill a contract with a customer(1)
|
68
|
66
|
||||||
Wireless handset receivables(2)
|
177
|
176
|
||||||
Current portion of derivatives
|
9
|
5
|
||||||
371
|
360
|
(1) |
Costs incurred to obtain or fulfill a contract with a customer are capitalized and subsequently amortized as an expense over the average life of a customer.
|
(2) |
As described in the revenue and expenses accounting policy detailed in the significant accounting policies disclosed in the Company’s consolidated financial statements for the year ended August 31, 2022, these amounts
relate to the current portion of wireless handset receivables.
|
5. |
INVESTMENTS AND OTHER ASSETS
|
February 28, 2023
|
August 31, 2022
|
|||||||
Investments in private entities
|
68
|
71
|
6. |
OTHER LONG-TERM ASSETS
|
February 28, 2023
|
August 31, 2022
|
|||||||
Equipment costs subject to a deferred revenue arrangement
|
34
|
28
|
||||||
Long-term Wireless handset receivables
|
106
|
76
|
||||||
Costs incurred to obtain or fulfill a contract with a customer
|
36
|
37
|
||||||
Credit facility arrangement fees
|
2
|
2
|
||||||
Net pension assets
|
39
|
34
|
||||||
Derivative assets
|
3
|
-
|
||||||
Other
|
31
|
31
|
||||||
251
|
208
|
Terminal value
|
||||||||||||
Post-tax
discount rate
|
Terminal
growth rate
|
Terminal adjusted
EBITDA multiple
|
||||||||||
Satellite
|
8.0
|
%
|
-8.3
|
%
|
6.1
|
x
|
Estimated decline in recoverable amount
|
||||||||||||
Terminal value
|
||||||||||||
1% increase in
discount rate
|
1% decrease in
terminal growth rate
|
0.5 times decrease in
terminal adjusted
EBITDA multiple
|
||||||||||
Satellite
|
5.7
|
%
|
4.0
|
%
|
4.5
|
%
|
8. |
LEASE LIABILITIES
|
August 31, 2022
|
1,130
|
|||
Net additions
|
2
|
|||
Interest on lease liabilities
|
(20
|
)
|
||
Interest payments on lease liabilities
|
20
|
|||
Principal payments of lease liabilities
|
(59
|
)
|
||
Balance as at February 28, 2023
|
1,073
|
|||
Current
|
113
|
|||
Long-term
|
1,017
|
|||
Balance as at August 31, 2022
|
1,130
|
|||
Current
|
112
|
|||
Long-term
|
961
|
|||
Balance as at February 28, 2023
|
1,073
|
9. |
SHORT-TERM BORROWINGS
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Accounts receivable securitization program, beginning of period
|
200
|
200
|
200
|
200
|
||||||||||||
Accounts receivable securitization program, end of period
|
200
|
200
|
200
|
200
|
February 28, 2023
|
August 31, 2022
|
|||||||
Trade accounts receivable sold to buyer as security
|
328
|
321
|
||||||
Short-term borrowings from buyer
|
(200
|
)
|
(200
|
)
|
||||
Over-collateralization
|
128
|
121
|
||||||
10. |
PROVISIONS
|
Asset
retirement
obligations $
|
Restructuring
$
|
Other
$
|
Total
$
|
|||||||||||||
Balance as at August 31, 2022
|
81
|
1
|
44
|
126
|
||||||||||||
Additions
|
-
|
-
|
13
|
13
|
||||||||||||
Accretion
|
2
|
-
|
2
|
|||||||||||||
Payments
|
-
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
|||||||||
Balance as at February 28, 2023
|
83
|
-
|
56
|
139
|
||||||||||||
Current
|
-
|
1
|
44
|
45
|
||||||||||||
Long-term
|
81
|
-
|
-
|
81
|
||||||||||||
Balance as at August 31, 2022
|
81
|
1
|
44
|
126
|
||||||||||||
Current
|
-
|
-
|
56
|
56
|
||||||||||||
Long-term
|
83
|
-
|
-
|
83
|
||||||||||||
Balance as at February 28, 2023
|
83
|
-
|
56
|
139
|
11. |
LONG-TERM DEBT
|
February 28, 2023
|
August 31, 2022
|
|||||||||||||||||||||||||||
Effective
interest
rates
|
Long-term
debt at
amortized
cost(1)
|
Adjustment
for finance
costs (1) |
Long-term
debt
repayable
at maturity
|
Long-term
debt at
amortized
cost(1)
|
Adjustment
for finance
costs (1)
|
Long-term
debt
repayable
at maturity
|
||||||||||||||||||||||
% | $ | $ | $ | $ | $ | $ |
||||||||||||||||||||||
Corporate
|
||||||||||||||||||||||||||||
Cdn fixed rate senior notes-
|
||||||||||||||||||||||||||||
3.80% due November 2, 2023
|
3.80
|
500
|
-
|
500
|
499
|
1
|
500
|
|||||||||||||||||||||
4.35% due January 31, 2024
|
4.35
|
500
|
-
|
500
|
500
|
-
|
500
|
|||||||||||||||||||||
3.80% due March 1, 2027
|
3.84
|
299
|
1
|
300
|
299
|
1
|
300
|
|||||||||||||||||||||
4.40% due November 2, 2028
|
4.40
|
497
|
3
|
500
|
497
|
3
|
500
|
|||||||||||||||||||||
3.30% due December 10, 2029
|
3.41
|
496
|
4
|
500
|
496
|
4
|
500
|
|||||||||||||||||||||
2.90% due December 9, 2030
|
2.92
|
497
|
3
|
500
|
497
|
3
|
500
|
|||||||||||||||||||||
6.75% due November 9, 2039
|
6.89
|
1,423
|
27
|
1,450
|
1,422
|
28
|
1,450
|
|||||||||||||||||||||
4.25% due December 9, 2049
|
4.33
|
296
|
4
|
300
|
296
|
4
|
300
|
|||||||||||||||||||||
4,508
|
42
|
4,550
|
4,506
|
44
|
4,550
|
|||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
Burrard Landing Lot 2 Holdings Partnership
|
Various
|
46
|
-
|
46
|
47
|
-
|
47
|
|||||||||||||||||||||
Total consolidated debt
|
4,554
|
42
|
4,596
|
4,553
|
44
|
4,597
|
||||||||||||||||||||||
Less current portion(2)
|
1,000
|
-
|
1,000
|
1
|
-
|
1
|
||||||||||||||||||||||
3,554
|
42
|
3,596
|
4,552
|
44
|
4,596
|
|
(1)
|
Long-term debt is presented net of unamortized discounts and finance costs.
|
(2)
|
Current portion of long-term debt includes amounts due within one year in respect of the senior notes due November 2, 2023, the senior notes due January 31, 2024, and the Burrard Landing loans.
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Interest expense – long-term debt
|
56
|
55
|
111
|
110
|
||||||||||||
Interest income – short-term (net)
|
(4
|
)
|
-
|
(8
|
)
|
(1
|
)
|
|||||||||
Interest on lease liabilities (note 8)
|
10
|
10
|
20
|
21
|
||||||||||||
Interest expense – other
|
2
|
-
|
4
|
-
|
||||||||||||
64
|
65
|
127
|
130
|
12. |
SHARE CAPITAL
|
Class A Shares
|
Class B Shares
|
||||||||||||||||
Number
|
$
|
Number
|
$
|
||||||||||||||
August 31, 2022
|
22,372,064
|
2
|
477,175,098
|
4,215
|
|||||||||||||
Issued upon stock option plan exercises
|
-
|
-
|
576,411
|
16
|
|||||||||||||
Issued upon restricted share unit exercises
|
-
|
-
|
8,174
|
-
|
|||||||||||||
February 28, 2023
|
22,372,064
|
2
|
477,759,683
|
4,231
|
13. |
EARNINGS PER SHARE
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Numerator for basic and diluted earnings per share ($)
|
||||||||||||||||
Net income
|
107
|
196
|
276
|
392
|
||||||||||||
Net income attributable to common shareholders
|
107
|
196
|
276
|
392
|
||||||||||||
Denominator (millions of shares)
|
||||||||||||||||
Weighted average number of Class A Shares and Class B Shares for basic earnings per share
|
500
|
499
|
500
|
499
|
||||||||||||
Effect of dilutive securities (1)
|
2
|
2
|
2
|
2
|
||||||||||||
Weighted average number of Class A Shares and Class B Shares for diluted earnings per share
|
502
|
501
|
502
|
501
|
||||||||||||
Earnings per share ($)
|
||||||||||||||||
Basic
|
0.21
|
0.39
|
0.55
|
0.79
|
||||||||||||
Diluted
|
0.21
|
0.39
|
0.55
|
0.78
|
(1) |
The earnings per share calculation does not take into consideration the potential dilutive effect of certain stock options since their impact is anti-dilutive. For the three and six months ended February 28, 2023, nil
(February 28, 2022 – nil) and nil (February 28, 2022 – nil) options were excluded from the diluted earnings per share calculation, respectively.
|
14. |
REVENUE
|
|
|
|||||||
Contract
Assets
|
Contract
Liabilities
|
|||||||
Balance as at August 31, 2022
|
86
|
220
|
||||||
Increase in contract assets from revenue recognized during the year
|
55
|
-
|
||||||
Contract assets transferred to trade receivables
|
(49
|
)
|
-
|
|||||
Contract terminations transferred to trade receivables
|
(9
|
)
|
-
|
|||||
Revenue recognized included in contract liabilities at the beginning of the year
|
-
|
(206
|
)
|
|||||
Increase in contract liabilities during the year
|
-
|
206
|
||||||
Balance as at February 28, 2023
|
83
|
220
|
||||||
Contract
Assets
|
Contract
Liabilities
|
|||||||
Current
|
63
|
200
|
||||||
Long-term
|
23
|
20
|
||||||
Balance as at August 31, 2022
|
86
|
220
|
||||||
Current
|
60
|
196
|
||||||
Long-term
|
23
|
24
|
||||||
Balance as at February 28, 2023
|
83
|
220
|
August 31, 2022
|
103
|
|||
Additions to deferred commission cost assets
|
42
|
|||
Amortization recognized on deferred commission cost assets
|
(42
|
)
|
||
Balance as at February 28, 2023
|
103
|
|||
Current
|
66
|
|||
Long-term
|
37
|
|||
Balance as at August 31, 2022
|
103
|
|||
Current
|
68
|
|||
Long-term
|
35
|
|||
Balance as at February 28, 2023
|
103
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Services
|
||||||||||||||||
Wireline - Consumer
|
858
|
887
|
1,725
|
1,783
|
||||||||||||
Wireline - Business
|
160
|
153
|
320
|
314
|
||||||||||||
Wireless
|
246
|
238
|
499
|
477
|
||||||||||||
1,264
|
1,278
|
2,544
|
2,574
|
|||||||||||||
Equipment and other
|
||||||||||||||||
Wireless
|
80
|
85
|
172
|
178
|
||||||||||||
80
|
85
|
172
|
178
|
|||||||||||||
Intersegment eliminations
|
(4
|
)
|
(4
|
)
|
(7
|
)
|
(7
|
)
|
||||||||
Total revenue
|
1,340
|
1,359
|
2,709
|
2,745
|
Within
1 year
|
Within
2 years
|
Within
3 years
|
Within
4 years
|
Within
5 years
|
Thereafter
|
Total
|
||||||||||||||||||||||
Wireline
|
1,703
|
713
|
168
|
86
|
29
|
3
|
2,702
|
|||||||||||||||||||||
Wireless
|
313
|
110
|
-
|
-
|
-
|
-
|
423
|
|||||||||||||||||||||
Total
|
2,016
|
823
|
168
|
86
|
29
|
3
|
3,125
|
15. |
OPERATING, GENERAL AND ADMINISTRATIVE EXPENSES AND RESTRUCTURING COSTS
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Employee salaries and benefits
|
163
|
170
|
328
|
334
|
||||||||||||
Purchase of goods and services
|
557
|
557
|
1,143
|
1,146
|
||||||||||||
720
|
727
|
1,471
|
1,480
|
16. |
OTHER GAINS (LOSSES)
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Gain on disposal of fixed assets
|
2
|
2
|
4
|
2
|
||||||||||||
Transaction costs (1)
|
(12
|
)
|
(3
|
)
|
(32
|
)
|
(5
|
)
|
||||||||
Other (2)
|
–
|
(4
|
)
|
2
|
(6
|
)
|
||||||||||
(10
|
)
|
(5
|
)
|
(26
|
)
|
(9
|
)
|
(1) |
The Company has incurred a number of transaction-related advisory, legal, financial, and other professional fees in connection with the Rogers-Shaw Transaction. As these costs do not relate to ongoing operations, they
have been classified as non-operating expenses. Please refer to Note 1 for further details on the Transaction.
|
(2) |
Other gains (losses) generally includes realized and unrealized foreign exchange gains and losses on US dollar denominated current assets and liabilities, unrealized changes in the forward element of virtual power
purchase agreements, and the Company’s share of the operations of Burrard Landing Lot 2 Holdings Partnership.
|
17. |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS
|
Amount
|
Income taxes
|
Net
|
||||||||||
Items that may subsequently be reclassified to income
|
||||||||||||
Change in unrealized fair value of derivatives designated as cash flow hedges
|
3
|
(2
|
)
|
1
|
||||||||
Adjustment for hedged items recognized in the period
|
(1
|
)
|
1
|
-
|
||||||||
2
|
(1
|
)
|
1
|
|||||||||
Items that will not be subsequently reclassified to income
|
||||||||||||
Remeasurements on employee benefit plans
|
1
|
-
|
1
|
|||||||||
3
|
(1
|
)
|
2
|
Amount
|
Income taxes
|
Net
|
||||||||||
Items that may subsequently be reclassified to income
|
||||||||||||
Change in unrealized fair value of derivatives designated as cash flow hedges
|
5
|
(2
|
)
|
3
|
||||||||
Adjustment for hedged items recognized in the period
|
(2
|
)
|
1
|
(1
|
)
|
|||||||
3
|
(1
|
)
|
2
|
|||||||||
Items that will not be subsequently reclassified to income
|
||||||||||||
Remeasurements on employee benefit plans
|
4
|
(1
|
)
|
3
|
||||||||
7
|
(2
|
)
|
5
|
Amount
|
Income taxes
|
Net
|
||||||||||
Items that may subsequently be reclassified to income
|
||||||||||||
Change in unrealized fair value of derivatives designated as cash flow hedges
|
(2
|
)
|
1
|
(1
|
)
|
|||||||
Adjustment for hedged items recognized in the period
|
-
|
-
|
||||||||||
(2
|
)
|
1
|
(1
|
)
|
||||||||
Items that will not be subsequently reclassified to income
|
||||||||||||
Remeasurements on employee benefit plans
|
26
|
(7
|
)
|
19
|
||||||||
24
|
(6
|
)
|
18
|
Amount
|
Income taxes
|
Net
|
||||||||||
Items that may subsequently be reclassified to income
|
||||||||||||
Change in unrealized fair value of derivatives designated as cash flow hedges
|
1
|
-
|
1
|
|||||||||
Adjustment for hedged items recognized in the period
|
1
|
-
|
1
|
|||||||||
2
|
-
|
2
|
||||||||||
Items that will not be subsequently reclassified to income
|
||||||||||||
Remeasurements on employee benefit plans
|
42
|
(11
|
)
|
31
|
||||||||
44
|
(11
|
)
|
33
|
February 28, 2023
|
August 31, 2022
|
|||||||
Items that may subsequently be reclassified to income
|
||||||||
Change in unrealized fair value of derivatives designated as cash flow hedges
|
5
|
3
|
||||||
Items that will not be subsequently reclassified to income
|
||||||||
Remeasurements on employee benefit plans
|
(7
|
)
|
(10
|
)
|
||||
(2
|
)
|
(7
|
)
|
18. |
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net income from operations
|
107
|
196
|
276
|
392
|
||||||||||||
Adjustments to reconcile net income to funds flow from operations:
|
||||||||||||||||
Amortization
|
317
|
305
|
629
|
606
|
||||||||||||
Deferred income tax expense (recovery)
|
(14
|
)
|
(22
|
)
|
(7
|
)
|
(45
|
)
|
||||||||
Share-based compensation
|
-
|
1
|
-
|
1
|
||||||||||||
Defined benefit pension plans
|
2
|
2
|
4
|
5
|
||||||||||||
Net change in contract asset balances
|
1
|
12
|
1
|
25
|
||||||||||||
Impairment of assets
|
90
|
-
|
90
|
-
|
||||||||||||
Fair value adjustments for private investments
|
3
|
-
|
3
|
-
|
||||||||||||
Other
|
(4
|
)
|
2
|
(7
|
)
|
3
|
||||||||||
Funds flow from operations
|
502
|
496
|
989
|
987
|
||||||||||||
Three months ended February 28,
|
Six months ended February 28,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Interest paid
|
32
|
34
|
108
|
112
|
||||||||||||
Income taxes paid (net of refunds)
|
44
|
43
|
151
|
97
|
||||||||||||
Interest received
|
3
|
-
|
7
|
1
|
19. |
FINANCIAL INSTRUMENTS
|
February 28, 2023
|
August 31, 2022
|
|||||||||||||||
Carrying
value
|
Estimated
fair value
|
Carrying
value
|
Estimated
fair value
|
|||||||||||||
Liabilities
|
||||||||||||||||
Long-term debt (including current portion)(1)
|
4,554
|
4,493
|
4,553
|
4,470
|
(1) |
Level 2 fair value – determined by valuation techniques using inputs based on observable market data, either directly or indirectly, other than quoted prices.
|