Document and Entity Information
Document and Entity Information | 6 Months Ended |
Feb. 28, 2019shares | |
Document Information [Line Items] | |
Trading Symbol | sjr |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --08-31 |
Amendment Flag | false |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2019 |
Document Period End Date | Feb. 28, 2019 |
Document Type | 6-K |
Entity Central Index Key | 0000932872 |
Entity Registrant Name | SHAW COMMUNICATIONS INC |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ifrs Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 22,372,064 |
ifrs Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 489,653,892 |
ifrs Series A Preferred Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,012,393 |
ifrs Series B Preferred Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,987,607 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position (unaudited) - CAD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 |
Current | ||||||
Cash | $ 1,288 | $ 1,189 | $ 384 | $ 278 | $ 445 | $ 507 |
Accounts receivable | 276 | 253 | 286 | |||
Inventories | 74 | 61 | 59 | |||
Other current assets [note 5] | 332 | 273 | 179 | |||
Current portion of contract assets [note 4] | 74 | 59 | 15 | |||
Assets held for sale | 0 | 0 | 61 | |||
Total current assets | 2,044 | 1,030 | 1,107 | |||
Investments and other assets (notes 14 and 15) | 676 | 660 | 937 | |||
Property, plant and equipment | 4,747 | 4,702 | 4,394 | |||
Other long-term assets (note 14) | 172 | 197 | 216 | |||
Deferred income tax assets | 5 | 4 | 4 | |||
Intangibles | 7,469 | 7,482 | 7,435 | |||
Goodwill | 280 | 280 | 280 | |||
Contract assets [note 4] | 71 | 76 | 44 | |||
Total assets | 15,464 | 14,431 | 14,417 | |||
Current | ||||||
Short-term borrowings [note 6] | 40 | $ 40 | 40 | 0 | $ 0 | 0 |
Accounts payable and accrued liabilities | 931 | 970 | 909 | |||
Provisions [note 7] | 234 | 245 | 76 | |||
Income taxes payable | 114 | 133 | 151 | |||
Current portion of contract liabilities [note 4] | 218 | 226 | 214 | |||
Current portion of long-term debt [notes 9 and 14] | 1,251 | 1 | 2 | |||
Liabilities held for sale | 0 | 0 | 39 | |||
Total current liabilities | 2,788 | 1,615 | 1,391 | |||
Long-term debt [notes 9 and 14] | 4,055 | 4,310 | 4,298 | |||
Other long-term liabilities | 21 | 13 | 114 | |||
Provisions [note 7] | 96 | 179 | 67 | |||
Deferred credits | 435 | 442 | 469 | |||
Contract liabilities [note 4] | 16 | 18 | 21 | |||
Deferred income tax liabilities | 1,924 | 1,884 | 1,863 | |||
Total liabilities | 9,335 | 8,461 | 8,223 | |||
Shareholders' equity [notes 10 and 12] | ||||||
Common and preferred shareholders | 6,128 | 5,969 | 6,193 | |||
Non-controlling interests in subsidiaries | 1 | 1 | 1 | |||
Total shareholders' equity | 6,129 | 5,970 | $ 6,036 | 6,194 | ||
Total liabilities and shareholders' equity | $ 15,464 | $ 14,431 | $ 14,417 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue [notes 3 and 4] | $ 1,316 | $ 1,329 | $ 2,671 | $ 2,574 |
Operating, general and administrative expenses [note 8] | (767) | (846) | (1,577) | (1,611) |
Restructuring costs [notes 7 and 8] | 0 | (417) | (1) | (417) |
Amortization: | ||||
Deferred equipment revenue | 5 | 8 | 11 | 17 |
Deferred equipment costs | (21) | (28) | (45) | (58) |
Property, plant and equipment, intangibles and other | (248) | (234) | (492) | (473) |
Operating income (loss) from continuing operations | 285 | (188) | 567 | 32 |
Amortization of financing costs - long-term debt | 0 | (1) | (1) | (2) |
Interest expense | (68) | (63) | (130) | (124) |
Equity income (loss) of an associate or joint venture [note 15] | 3 | 16 | 26 | 46 |
Other gains | (4) | 1 | (5) | 5 |
Income (loss) from continuing operations before income taxes | 216 | (235) | 457 | (43) |
Current income tax expense [note 3] | 42 | 42 | 77 | 78 |
Deferred income tax expense | 19 | (102) | 39 | (63) |
Net income (loss) from continuing operations | 155 | (175) | 341 | (58) |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (6) |
Net income (loss) | 152 | (175) | 339 | (64) |
Net income (loss) from continuing operations attributable to: | ||||
Equity shareholders | 155 | (175) | 341 | (58) |
Loss from discontinued operations attributable to: | ||||
Equity shareholders | $ 0 | $ 0 | $ 0 | $ (6) |
Basic earnings (loss) per share [note 11] | ||||
Continuing operations | $ 0.3 | $ (0.35) | $ 0.66 | $ (0.12) |
Discontinued operations | 0 | 0 | 0 | (0.01) |
Basic earnings per share | 0.3 | (0.35) | 0.66 | (0.13) |
Diluted earnings (loss) per share [note 11] | ||||
Continuing operations | 0.3 | (0.35) | 0.66 | (0.12) |
Discontinued operations | 0 | 0 | 0 | (0.01) |
Diluted earnings per share | $ 0.3 | $ (0.35) | $ 0.66 | $ (0.13) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Consolidated Statements of Comprehensive Income (unaudited) | ||||
Net income (loss) | $ 152 | $ (175) | $ 339 | $ (64) |
Continuing operations: | ||||
Change in unrealized fair value of derivatives designated as cash flow hedges | 0 | (1) | 1 | 3 |
Adjustment for hedged items recognized in the period | (1) | 1 | (1) | 2 |
Share of other comprehensive income (loss) of associates | (7) | 6 | (6) | 5 |
Items that may subsequently be reclassified to income | (8) | 6 | (6) | 10 |
Remeasurements on employee benefit plans: | ||||
Continuing operations | (9) | 74 | 0 | 63 |
Other comprehensive income (loss) | (17) | 80 | (6) | 73 |
Comprehensive income (loss) | 138 | (95) | 335 | 9 |
Comprehensive income (loss) attributable to: | ||||
Equity shareholders | $ 138 | $ (95) | $ 335 | $ 9 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (unaudited) - CAD ($) $ in Millions | Total | Share capital [Member] | Contributed surplus [Member] | Retained Earnings [Member] | Accumulated other comprehensive loss [Member] | Total [Member] | Equity attributable to non-controlling interests [Member] |
Balance, as previously reported (as previously reported [member]) at Aug. 31, 2017 | $ 6,154 | $ 4,090 | $ 30 | $ 2,164 | $ (131) | $ 6,153 | $ 1 |
Balance, as previously reported (Change in accounting policy adjustments [note 2] [member]) at Aug. 31, 2017 | 0 | ||||||
Balance, as previously reported at Aug. 31, 2017 | 6,194 | ||||||
Net income (loss) | as previously reported [member] | (50) | ||||||
Net income (loss) | Change in accounting policy adjustments [note 2] [member] | (5) | ||||||
Net income (loss) | (64) | 0 | 0 | (64) | 0 | (64) | 0 |
Other comprehensive income (loss) | 73 | 0 | 0 | 0 | 73 | 73 | 0 |
Comprehensive income (loss) | 9 | 0 | 0 | (64) | 73 | 9 | 0 |
Dividends | (196) | 0 | 0 | (196) | 0 | (196) | 0 |
Dividend reinvestment plan | 0 | 106 | 0 | (106) | 0 | 0 | 0 |
Shares issued under stock option plan | 27 | 31 | (4) | 0 | 0 | 27 | 0 |
Share-based compensation | 2 | 0 | 2 | 0 | 0 | 2 | 0 |
Restated balance at Feb. 28, 2018 | 6,036 | 4,227 | 28 | 1,838 | (58) | 6,035 | 1 |
Restated balance | Transition Adjustments - IFRS 15 [note 2] [member] | 5,979 | 4,349 | 27 | 1,641 | (39) | 5,978 | 1 |
Restated balance | 5,970 | 4,349 | 27 | 1,632 | (39) | 5,969 | 1 |
Balance, as previously reported (as previously reported [member]) at Aug. 31, 2018 | 5,957 | 4,349 | 27 | 1,619 | (39) | 5,956 | 1 |
Balance, as previously reported (Change in accounting policy adjustments [note 2] [member]) at Aug. 31, 2018 | (9) | ||||||
Balance, as previously reported at Aug. 31, 2018 | 5,970 | ||||||
Net income (loss) | 339 | 0 | 0 | 341 | 0 | 341 | 0 |
Other comprehensive income (loss) | (6) | 0 | 0 | 0 | (6) | (6) | 0 |
Comprehensive income (loss) | 335 | 0 | 0 | 341 | (6) | 335 | 0 |
Dividends | (200) | 0 | 0 | (200) | 0 | (200) | 0 |
Dividend reinvestment plan | 0 | 107 | 0 | (107) | 0 | 0 | 0 |
Shares issued under stock option plan | 22 | 26 | (4) | 0 | 0 | 22 | 0 |
Share-based compensation | 2 | 0 | 2 | 0 | 0 | 2 | 0 |
Restated balance at Feb. 28, 2019 | $ 6,129 | $ 4,482 | $ 25 | $ 1,666 | $ (45) | $ 6,128 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
OPERATING ACTIVITIES | ||||
Funds flow from continuing operations [note 13] | $ 444 | $ (49) | $ 883 | $ 318 |
Net change in non-cash balances related to continuing operations | (64) | 253 | (168) | 254 |
Operating activities of discontinued operations | 0 | 0 | 0 | (2) |
Operating activities | 380 | 204 | 715 | 570 |
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment [note 3] | (220) | (263) | (556) | (582) |
Additions to equipment costs (net) [note 3] | (10) | (10) | (19) | (26) |
Additions to other intangibles [note 3] | (19) | (21) | (53) | (56) |
Net (additions) reductions to inventories | 30 | (17) | (14) | (46) |
Proceeds on sale of discontinued operations, net of cash sold | 0 | 0 | 0 | 18 |
Net additions to investments and other assets | 3 | 19 | 3 | 42 |
Proceeds on disposal of property, plant and equipment | 13 | 1 | 13 | 8 |
Investing activities | (203) | (291) | (626) | (642) |
FINANCING ACTIVITIES | ||||
Increase in long-term debt | 0 | 10 | 1,000 | 10 |
Bank facility arrangement costs | 0 | 0 | (9) | 0 |
Issue of Class B Non-Voting Shares [note 10] | 21 | 6 | 23 | 27 |
Dividends paid on Class A Shares and Class B Non-Voting Shares | (97) | (94) | (195) | (190) |
Dividends paid on Preferred Shares | (2) | (2) | (4) | (4) |
Financing activities | (78) | (80) | 815 | (157) |
Increase (decrease) in cash | 99 | (167) | 904 | (229) |
Cash, beginning of the period | 1,189 | 445 | 384 | 507 |
Cash of continuing operations, end of period | $ 1,288 | $ 278 | $ 1,288 | $ 278 |
Corporate Information
Corporate Information | 6 Months Ended |
Feb. 28, 2019 | |
Corporate Information [Abstract] | |
Corporate Information | 1 CORPORATE INFORMATION Shaw Communications Inc. (the “Company”) is a diversified Canadian connectivity company whose core operating business is providing: Cable telecommunications, Satellite video services and data networking to residential customers, businesses and public-sector entities (“Wireline”); and wireless services for voice and data communications (“Wireless”). The Company’s shares are listed on the Toronto Stock Exchange (“TSX”), TSX Venture Exchange (“TSXV”) and New York Stock Exchange (“NYSE”) (Symb ol: TSX - SJR.B, SJR.PR.A, SJR.PR.B, NYSE - SJR, and TSXV - SJR.A). |
Basis Of Presentation And Accou
Basis Of Presentation And Accounting Policies | 6 Months Ended |
Feb. 28, 2019 | |
Basis of Presentation and Accounting Policies | |
Basis Of Presentation And Accounting Policies | 2 BASIS OF PRESENTATION AND ACCOUNTING POLICIES Statement of compliance These condensed interim consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and in compliance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). The condensed interim consolidated financial statements of the Company for the three months ended February 2 8, 2019 were authorized for issue by the Audit Committee on April X, 2019. Basis of presentation These condensed interim consolidated financial statements have been prepared primarily under the historical cost convention except as detailed in the signifi cant accounting policies disclosed in the Company’s consolidated financial statements for the year ended August 31, 2018 and are expressed in millions of Canadian dollars unless otherwise indicated. The condensed interim consolidated statements of income a re presented using the nature classification for expenses. Certain comparative figures have been reclassified to conform to the current period’s presentation. The notes presented in these condensed interim consolidated financial statements include only significant events and transactions occurring since the Company’s last fiscal year end and are not fully inclusive of all matters required to be disclosed by IFRS in the Company’s annual consolidated financial statements. As a result, these condensed inter im consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended August 31, 2018. The condensed interim consolidated financial statements follow the same accounting policies and met hods of application as the most recent annual consolidated financial statements except as noted below. b) New accounting standards We adopted the following new accounting standards effective September 1, 2018. • IFRS 15 Revenue from Contracts with Customers, was issued in May 2014 and replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programs, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue—Barter Transactions Involving Advertising Services. The new standard requires revenue to be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the considerati on expected to be received in exchange for those goods or services. The principles are to be applied in the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the t ransaction price; (4) allocate the transaction price to the performance obligations in the contract; and, (5) recognize revenue when (or as) the entity satisfies a performance obligation. IFRS 15 also provides guidance relating to the treatment of cont ract acquisition and contract fulfillment costs. The application of IFRS 15 impacted the Company’s reported results, including the classification and timing of revenue recognition and the treatment of costs incurred to obtain contracts with customers. T he application of this standard most significantly affected our Wireless arrangements that bundle equipment and service together, specifically with regards to the timing of recognition and classification of revenue. The timing of recognition and classifica tion of revenue was affected because at contract inception, IFRS 15 requires the estimation of total consideration to be received over the contract term, and the allocation of that consideration to performance obligations in the contract, typically based o n the relative stand-alone selling price of each obligation. This resulted in a decrease to equipment revenue recognized at contract inception, as the discount previously recognized over 24 months is now recognized at contract inception, and a decrease to service revenue recognized over the course of the contract, as a portion of the discount previously allocated solely to equipment revenue is allocated to service revenue. The measurement of total revenue recognized over the life of a contract was unaffect ed by the new standard. IFRS 15 also requires that incremental costs to obtain a contract with a customer (for example, commissions) be capitalized and amortized into operating expenses over the life of a contract on a rational, systematic basis consiste nt with the pattern of the transfer of goods or services to which the asset relates. The Company previously expensed such costs as incurred. The Company’s financial position was also impacted by the adoption of IFRS 15, with new contract asset and contrac t liability categories recognized to reflect differences between the timing of revenue recognition and the actual billing of those goods and services to customers. For purposes of applying the new standard on an ongoing basis, we must make judgments in respect of the new standard. We must make judgments in determining whether a promise to deliver goods or services is considered distinct, how to determine the transact ion prices and how to allocate those amounts amongst the associated performance obligations. We must also exercise judgment as to whether sales-based compensation amounts are costs incurred to obtain contracts with customers that should be capitalized and subsequently amortized on a systematic basis over time. We have made a policy choice to adopt IFRS 15 with full retrospective application, subject to certain practical expedients. As a result, all comparative information in these financial statements has been prepared as if IFRS 15 had been in effect since September 1, 2017. The accounting policies set out in note 2 have been applied in preparing the interim consolidated financial statements as at and for the three and six months ended February 28, 2019, t he comparative information presented for the three and six months ended February 28, 2018, and for the consolidated statements of financial position as at September 1, 2017 and August 31, 2018. Upon adoption of, and transition to, IFRS 15, we elected to utilize the following practical expedients: • Completed contracts that begin and end within the same annual reporting period and those completed before September 1, 2017 are not restated; • Contracts modified prior to September 1, 2017 are not restated. Th e aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations; and • Not disclose, on an annual basis, the unsatisfied portions of performance obligations related to contracts with a duration of one year or less or where the revenue we recognize is equal to the amount invoiced to the customer. Impacts of IFRS 15, Rev enue from Contracts with Customers The effect of transition to IFRS 15 on impacted line items on our condensed Consolidated Statements of Income as disclosed in note 2(f) - “Transition adjustments” for the three and six months ended February 28, 2018, are as follows: Three months ended February 28, 2018 Six months ended February 28, 2018 As Effect of Subsequent to As Effect of Subsequent to (millions of Canadian dollars) reported transition transition reported transition transition Revenue i. 1,355 (26) 1,329 2,604 (30) 2,574 Operating, general and administrative expenses ii. (854) 8 (846) (1,622) 11 (1,611) Other revenue (expense) (2) 3 1 2 3 5 Income tax expense (recovery) (53) (6) (59) 24 (7) 17 Net income from continuing operations (164) (9) (173) (50) (9) (59) i) Allocation of transaction price Revenue recognized at point of sale requires the estimation of total consideration over the contract term and allocation of that consideration to all performance obligations in the contract based on their relative stand-alone selling prices. For Wireless term contracts, equipment revenue recognized at contract inception, as well as service revenue recognized over the course of the contract is lower than previously recognized as noted above. ii) Deferred commissio n costs Costs incurred to obtain or fulfill a contract with a customer were previously expensed as incurred. Under IFRS 15, these costs are capitalized and subsequently amortized as an expense over the life of the customer on a rational, systematic basis c onsistent with the pattern of the transfer of goods and services to which the asset relates. As a result, commission costs are reduced in the period, with an offsetting increase in amortization of capitalized costs over the average life of a customer. Th e effect of transition to IFRS 15 on our disaggregated revenues for the three and six months ended February 28, 2018, are as follows: Three months ended February 28, 2018 Six months ended February 28, 2018 As Effect of Subsequent to As Effect of Subsequent to (millions of Canadian dollars) reported transition transition reported transition transition Services Wireline - Consumer 926 - 926 1,861 - 1,861 Wireline - Business 140 - 140 280 - 280 Wireless 142 (8) 134 273 (12) 261 1,208 (8) 1,200 2,414 (12) 2,402 Equipment and other Wireless 148 (18) 130 192 (18) 174 148 (18) 130 192 (18) 174 Intersegment eliminations (1) - (1) (2) - (2) Total revenue 1,355 (26) 1,329 2,604 (30) 2,574 The effect of transition to IFRS 15 on impacted line items on our condensed Consolidated Statements of Financial Position as disclosed in note 2(f) - “Transition adjustments” as at September 1, 2017 and August 31, 2018 are as follows: As at September 1, 2017 As at August 31, 2018 As Effect Subsequent to As Effect Subsequent to (millions of Canadian dollars) reported of transition transition reported of transition transition Current portion of contract assets i. - 15 15 - 59 59 Other current assets ii. 155 24 179 286 (13) 273 Contract assets i. - 44 44 - 76 76 Other long-term assets ii. 255 (39) 216 300 (102) 198 Accounts payable and accrued liabilities i. 913 (4) 909 971 (1) 970 Unearned revenue i. 211 (211) - 221 (221) - Current portion of contract liabilities i. - 214 214 - 226 226 Deferred credits i. 490 (21) 469 460 (18) 442 Deferred income tax liabilities ii. 1,858 5 1,863 1,894 (6) 1,888 Contract liabilities i. - 21 21 - 18 18 Shareholders' equity 6,154 40 6,194 5,957 22 5,979 i) Contract assets and liabilities Contract assets and liabilities are the result of the difference in timing related to revenue recognized at the beginning of a contract and cash collected. Contract assets arise primarily as a result of the difference between revenue recognized on the sale of wireless device at the onset of a term contract and the cash collected at the point of sale. Contract liabilities are the result of receiving payment related to a customer contract before providing the related go ods or services. We will account for contract assets and liabilities on a contract-by-contract basis, with each contract being presented as a single net contract asset or net contract liability accordingly. ii) Deferred commission cost asset Under IFRS 15 , we will defer commission costs paid to internal and external representatives as a result of obtaining contracts with customers as deferred commission cost assets and amortize them over the pattern of the transfer of goods and services to the customer, wh ich is typically evenly over 24 to 36 months. Refer to note 2(f) “Transition adjustments” for the impact of application of IFRS 15 on our previously reported consolidated statements of cash flows. • IFRS 9 Financial Instruments was revised and issued in July 2014 and replaces IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes updated guidance on the classification and measurement of financial instruments, new guidance on measuring impairment on financial assets, and new hedge acco unting guidance. We have applied IFRS 9, and the related consequential amendments to other IFRSs, on a retrospective basis except for the changes to hedge accounting as described below which were applied on a prospective basis. The adoption of IFRS 9 did n ot have a significant impact on our financial performance or the carrying amounts of our financial instruments as set out in note 2(f) below. IFRS 9 replaces the classification and measurement models in IAS 39 with a single model under which financial as sets are classified and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL) and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. I nvestments and equity instruments are required to be measured by default at FVTPL unless an irrevocable option for each equity instrument is taken to measure at FVOCI. The classification and measurement of financial assets is based on the business model th at the asset is managed and its contractual cash flow characteristics. The adoption of IFRS 9 did not change the measurement bases of our financial assets o Cash and derivative instruments classified as held-for-trading and measured at FVTPL under IAS 39 c ontinue to be measured as such under IFRS 9 with an updated classification of FVTPL o Investments in equity securities not quoted in an active market and where fair value cannot be reliably measured that were classified as available-for-sale and recorded at cost less impairment under IAS 39 are now required to be classified and meas ured at FVTPL under IFRS 9. There has been no change to the measurement of these assets on transition o Trade and other receivables classified as loans and receivables and measured at amortized cost under IAS 39 continue to be measured as such under IFRS 9 with an updated classification of amortized cost For financial liabilities, IFRS 9 retains most of the IAS 39 requirements. We did not choose the option of designating any financial liabilities at FVTPL as such, the adoption of IFRS 9 did not impact our accounting policies for financial liabilities as all liabilities continue to be measured at amortized cost. The impairment of financial assets under IFRS 9 is based on an expected credit loss (ECL) model, as opposed to the incurred loss model in IAS 39. I FRS 9 applies to financial assets measured at amortized cost, including contract assets under IFRS 15, and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified appr oach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in operating, general and administrative expenses in the Consolidated Statement of Income. This c hange did not have a significant impact to our receivables. IFRS 9 does not fundamentally change the types of hedging relationships or the requirements to measure and recognize ineffectiveness; however, it requires us to ensure that the hedge accounting r elationships are aligned with our risk management objective and strategy and to apply a more qualitative and forward-looking approach to assess hedge effectiveness. It also requires that amounts related to cash flow hedges of anticipated purchases of non-f inancial assets settled during the period to be reclassified from accumulated other comprehensive income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, when an anticipated transaction was subsequently recorded as a non- financial asset, the amounts were reclassified from other comprehensive income (loss). In accordance with IFRS 9’s transition provisions for hedge accounting, the Company has applied the IFRS 9 hedge accounting requirements prospectively from the date of initial application without restatement of prior period comparatives. The Company’s qualifying hedging relationships in place as at August 31, 2018 also qualified for hedge accounting in accordance with IFRS 9 and were therefore regarded as continuing hedg ing relationships. As the critical terms of the hedging instruments match those of their corresponding hedged items, all hedging relationships continue to be effective under IFRS 9’s effectiveness assessment requirements. The Company has not designated any hedging relationships under IFRS 9 that would not have met the qualifying hedge accounting criteria under IAS 39. c) Standards and amendments to standards issued but not yet effective The Company has not yet adopted certain standards and amendments that have been issued but are not yet effective. The following pronouncement is being assessed to determine their impact on the Company’s results and financial position. • IFRS 16 Leases wa s issued on January 2016 and replaces IAS 17 Leases. The new standard requires entities to recognize lease assets and lease obligations on the balance sheet. For lessees, IFRS 16 removes the classification of leases as either operating leases or finance le ases, effectively treating all leases as finance leases. Certain short-term leases (less than 12 months) and leases of low-value are exempt from the requirements and may continue to be treated as operating leases. Lessors will continue with a dual lease cl assification model. Classification will determine how and when a lessor will recognize lease revenue, and what assets would be recorded. As the Company has significant contractual obligations currently being recognized as operating leases, we anticipate that the application of IFRS 16 will result in a material increase to both assets and liabilities and material changes to the timing of the recognition of expenses associated with the lease arrangements although at this stage in the Company’s IFRS 16 imple mentation process, it is not possible to make reasonable quantitative estimates of the effects of the new standard. This new standard is described in our 2018 consolidated financial statements. We continue to assess the impact of this standard on our con solidated financial statements and we are progressing with the implementation of this standard. As at the date of these interim financial statements, there have been no significant changes to the disclosure related to the implementation of this standard th at was included in our 2018 financial statements. We intend to disclose the estimated financial effects of the adoption of IFRS 16 in our 2019 annual audited consolidated financial statements . d) Discontinued operations The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs when the disposal of a component or a group of components of the Company represents a strategic shift that will have a major impact on the Company’s operations and financial results, and where the operations and cash flows can be clearly distinguish ed, operationally and for financial reporting purposes, from the rest of the Company. The results of discontinued operations are excluded from both continuing operations and business segment information in the condensed interim consolidated financial st atements and the notes to the condensed interim consolidated financial statements, unless otherwise noted, and are presented net of tax in the statement of income for the current and comparative periods. Refer to the Company’s consolidated financial state ments for the year ended August 31, 2018 for further information regarding the Company’s discontinued operations. e) Change in accounting policy Effective September 1, 2018, the Company voluntarily changed its accounting policy related to the treatment of digital cable terminals (“DCTs”) to record them as property, plant and equipment rather than inventory upon acquisition. The Company believes that the change in accounting policy will result in clearer and more relevant financial information as the Company has recently changed its offerings to customers, which has resulted in DCTs being predominantly rented rath er than sold to customers. Previously, inventories included DCTs which were held pending rental or sale to the customer at cost or at a subsidized price. When the subscriber equipment was rented, it was transferred to property, plant and equipment and amor tized over its useful life and then removed from capital and returned to inventory when returned by a customer. Under the new policy, all DCTs will be classified as property, plant and equipment regardless of whether or not they are currently deployed to a customer as the Company believes that this better reflects the economic substance of its operations. This change in accounting policy has been applied retrospectively. Refer to note 2(f) - “Transition adjustments” below for the impact of this change of ac counting policy on previously reported consolidated Statements of Financial Position, consolidated Statements of Income and consolidated Statements of Cash Flows. f) Transition adjustments Below is the effect of transition to IFRS 15 and adoption of our new accounting policy described above on our condensed consolidated Statements of Income for the three and six months ended February 28, 2018. Three months ended February 28, 2018 Six months ended February 28, 2018 Change in Subsequent Change in Subsequent As IFRS 15 accounting to As IFRS 15 accounting to (millions of Canadian dollars) reported transition policy transition reported transition policy transition Revenue 1,355 (26) - 1,329 2,604 (30) - 2,574 Operating, general and administrative expenses (854) 8 - (846) (1,622) 11 - (1,611) Restructuring costs (417) - - (417) (417) - - (417) Amortization: - - Deferred equipment revenue 8 - - 8 17 - - 17 Deferred equipment costs (28) - - (28) (58) - - (58) Property, plant and equipment, intangibles and other (231) - (3) (234) (466) - (7) (473) Operating income from continuing operations (167) (18) (3) (188) 58 (19) (7) 32 Amortization of financing costs – long-term debt (1) - - (1) (2) - - (2) Interest expense (63) - - (63) (124) - - (124) Equity income of an associate or joint venture 16 - - 16 46 - - 46 Other gains (2) 3 - 1 2 3 - 5 Income from continuing operations before income taxes (217) (15) (3) (235) (20) (16) (7) (43) Current income tax expense 42 - - 42 78 - - 78 Deferred income tax expense (95) (6) (1) (102) (54) (7) (2) (63) Net income from continuing operations (164) (9) (2) (175) (44) (9) (5) (58) Loss from discontinued operations, net of tax - - - - (6) - - (6) Net income (164) (9) (2) (175) (50) (9) (5) (64) Net income from continuing operations attributable to: Equity shareholders (164) (9) (2) (175) (44) (9) (5) (58) Loss from discontinued operations attributable to: Equity shareholders - - - - (6) - - (6) Basic earnings (loss) per share Continuing operations (0.33) - - (0.35) (0.10) - - (0.12) Discontinued operations - - - - (0.01) - - (0.01) (0.33) - - (0.35) (0.11) - - (0.13) Diluted earnings (loss) per share Continuing operations (0.33) - - (0.35) (0.10) - - (0.12) Discontinued operations - - - - (0.01) - - (0.01) (0.33) - - (0.35) (0.11) - - (0.13) Below is the effect of transition to IFRS 15 and adoption of our new accounting policy described above on our condensed consolidated Statement of Financial Position as at September 1, 2017 and August 31, 2018 . As at September 1, 2017 As at August 31, 2018 Change in Subsequent Change in Subsequent As IFRS 15 accounting to As IFRS 15 accounting to (millions of Canadian dollars) reported transition policy transition reported transition policy transition ASSETS Current Cash 507 - - 507 384 - - 384 Accounts receivable 286 - - 286 255 - (2) 253 Inventories 109 - (50) 59 101 - (40) 61 Other current assets 155 24 - 179 286 (13) - 273 Current portion of contract assets - 15 - 15 - 59 - 59 Assets held for sale 61 - - 61 - - - - 1,118 39 (50) 1,107 1,026 46 (42) 1,030 Investments and other assets 937 - - 937 660 - - 660 Property, plant and equipment 4,344 - 50 4,394 4,672 - 30 4,702 Other long-term assets 255 (39) - 216 300 (102) (1) 197 Deferred income tax assets 4 - - 4 4 - - 4 Intangibles 7,435 - - 7,435 7,482 - - 7,482 Goodwill 280 - - 280 280 - - 280 Contract assets - 44 - 44 - 76 - 76 14,373 44 - 14,417 14,424 20 (13) 14,431 LIABILITIES AND SHAREHOLDERS' EQUITY Current Short-term borrowings - - - - 40 - - 40 Accounts payable and accrued liabilities 913 (4) - 909 971 (1) - 970 Provisions 76 - - 76 245 - - 245 Income taxes payable 151 - - 151 133 - - 133 Unearned revenue 211 (211) - - 221 (221) - - Current portion of contract liabilities - 214 - 214 - 226 - 226 Current portion of long-term debt 2 - - 2 1 - - 1 Liabilities held for sale 39 - - 39 - - - - 1,392 (1) - 1,391 1,611 4 - 1,615 Long-term debt 4,298 - - 4,298 4,310 - - 4,310 Other long-term liabilities 114 - - 114 13 - - 13 Provisions 67 - - 67 179 - - 179 Deferred credits 490 (21) - 469 460 (18) - 442 Contract liabilities - 21 - 21 - 18 - 18 Deferred income tax liabilities 1,858 5 - 1,863 1,894 (6) (4) 1,884 8,219 4 - 8,223 8,467 (2) (4) 8,461 Shareholders' equity Common and preferred shareholders 6,153 40 - 6,193 5,956 22 (9) 5,969 Non-controlling interests in subsidiaries 1 - - 1 1 - - 1 6,154 40 - 6,194 5,957 22 (9) 5,970 14,373 44 - 14,417 14,424 20 (13) 14,431 Below is the effect of transition to IFRS 15 and adoption of our new accounting policy described above on our condensed consolidated Statement of Cash Flows for the three and six months ended February 28, 2018. Three months ended February 28, 2018 Six months ended February 28, 2018 Change in Subsequent Change in Subsequent As IFRS 15 accounting to As IFRS 15 accounting to (millions of Canadian dollars) reported transition policy transition reported transition policy transition OPERATING ACTIVITIES Funds flow from continuing operations (26) (23) - (49) 358 (40) - 318 Net change in non-cash balances related to continuing operations 229 23 1 253 212 40 2 254 Operating activities of discontinued operations - - - - (2) - - (2) 203 - 1 204 568 - 2 570 INVESTING ACTIVITIES Additions to property, plant and equipment (270) - 7 (263) (602) - 20 (582) Additions to equipment costs (net) (10) - - (10) (26) - - (26) Additions to other intangibles (21) - - (21) (56) - - (56) Net additions (reductions) to inventories (9) - (8) (17) (24) - (22) (46) Proceeds on sale of discontinued operations, net of cash sold - - - - 18 - - 18 Net additions to investments and other assets 19 - - 19 42 - - 42 Proceeds on disposal of property, plant and equipment 1 - - 1 8 - - 8 (290) - (1) (291) (640) - (2) (642) FINANCING ACTIVITIES Increase in long-term debt 10 - - 10 10 10 Issue of Class B Non-Voting Shares 6 - - 6 27 - - 27 Dividends paid on Class A Shares and Class B Non-Voting Shares (94) - - (94) (190) - - (190) Dividends paid on Preferred Shares (2) - - (2) (4) - - (4) (80) - - (80) (157) - - (157) Increase (decrease) in cash (167) - - (167) (229) - - (229) Cash, beginning of the period 445 - - 445 507 - - 507 Cash of continuing operations, end of the period 278 - - 278 278 - - 278 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Feb. 28, 2019 | |
Business Segment Information [Abstract] | |
Business Segment Information | 3. BUSINESS SEGMENT INFORMATION The Company’s chief operating decision makers are the Chief Executive Officer, the President and the Executive Vice President, Chief Financial & Corporate Development Officer and they review the operating performance of the Company by segments which are co mprised of Wireline and Wireless. The chief operating decision makers utilize operating income before restructuring costs and amortization for each segment as a key measure in making operating decisions and assessing performance. The Wireline segment pro vides Cable telecommunications services including Video, Internet, Wi-Fi, Phone, Satellite Video and data networking through a national fibre-optic backbone network to Canadian consumers, North American businesses and public-sector entities. The Wireless s egment provides wireless services for voice and data communications serving customers in Ontario, British Columbia and Alberta. Both of the Company’s reportable segments are substantially located in Canada. Information on operations by segment is as foll ows: Operating information Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Revenue Wireline 1,071 1,066 2,154 2,141 Wireless 247 264 520 435 1,318 1,330 2,674 2,576 Intersegment eliminations (2) (1) (3) (2) 1,316 1,329 2,671 2,574 Operating income before restructuring costs and amortization Wireline 497 465 997 912 Wireless 52 18 97 51 549 483 1,094 963 Restructuring costs - (417) (1) (417) Amortization (264) (254) (526) (514) Operating income 285 (188) 567 32 Current taxes Operating 35 43 70 87 Other/non-operating 7 (1) 7 (9) 42 42 77 78 Capital expenditures Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Capital expenditures accrual basis Wireline 185 213 380 418 Wireless 84 56 150 173 269 269 530 591 Equipment costs (net of revenue) Wireline 10 12 20 30 Capital expenditures and equipment costs (net) Wireline 195 225 400 448 Wireless 84 56 150 173 279 281 550 621 Reconciliation to Consolidated Statements of Cash Flows Additions to property, plant and equipment 220 263 556 582 Additions to equipment costs (net) 10 10 19 26 Additions to other intangibles 19 21 53 56 Total of capital expenditures and equipment costs (net) per Consolidated Statements of Cash Flows 249 294 628 664 Increase/decrease in working capital and other liabilities related to capital expenditures 43 (12) (66) (37) Decrease in customer equipment financing receivables - 1 1 2 Less: Proceeds on disposal of property, plant and equipment (13) (2) (13) (8) Total capital expenditures and equipment costs (net) reported by segments 279 281 550 621 |
Revenue
Revenue | 6 Months Ended |
Feb. 28, 2019 | |
Revenue [Abstract] | |
Revenue | 4. REVENUE Significant accounting policies The Company records revenue from contracts with customers in accordance with the following five steps in IFRS 15: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and, (5) recognize revenue when (or as) we satisfy a performance obligation . Revenue for each performance obligation is recognized either over time (i.e. services) or at a point in time (i.e. equipment). For performance obligations satisfied over time, revenue is recognized as the services are provided. These services are typic ally provided, and recognized on a monthly basis. Revenue for performance obligations satisfied at a point in time is recognized when control of the item or service transfers to the customer. Revenues on certain long-term contracts are recognized using out put methods based on products delivered, performance completed to date and time elapsed. For bundled arrangements (e.g. wireless handsets, and voice and data services), items are accounted for as separate performance obligations if the item meets the defi nition of a distinct good or service. Stand-alone selling prices are determined using observable prices adjusted for market conditions and other factors, as appropriate. When a customer can modify their contract within predefined terms such that we are no t able to enforce the transaction price agreed to, but can only contractually enforce a lower amount, we allocate revenue between performance obligations using the minimum enforceable rights and obligations and any excess amount is recognized as revenue as its earned. Contract assets and liabilities We record a contract asset when we have provided goods and services to our customer but our right to related consideration for the performance obligation is conditional on satisfying other performance obligatio ns. Contract assets are transferred to trade receivables when our right to consideration becomes conditional only as to the passage of time. A contract liability is recognized when we receive consideration in advance of the transfer of products or services to the customer. We account for contract assets and liabilities on a contract-by-contract basis, with each contract presented as either a net contract asset or a net contract liability accordingly. Deferred commission cost assets We defer the incremental cost to obtain or fulfill a contract with a customer over their expected period of benefit to the extent they are recoverable. These costs include certain commissions paid to internal and external representatives. We defer them a s deferred commission cost assets in other assets and amortize them to operating costs over the pattern of the transfer of goods and services to the customer, which is typically evenly over either 24 or 36 consecutive months. Use of estimates and judgments The application of IFRS 15 requires Shaw to make judgments and estimates that affect the amount and timing of revenue from contracts with customers, including estimates of the stand-alone selling prices of wireless products and services, the identification of performance obligati ons within a contract and the timing of satisfaction of performance obligations under long-term contracts. Determining the costs we incur to obtain or fulfill a contract that meet the deferral criteria within IFRS 15 requires us to make significant judgm ents. We expect incremental commission fees paid to internal and external representatives as a result of obtaining contracts with customers to be recoverable. Contract assets and liabilities The table below provides a reconciliation of the significant c hanges to the current and long-term portion of contract assets and liabilities balances during the period. Contract Contract Assets Liabilities Opening balance, as at September 1, 2018 135 244 Increase in contract assets from revenue recognized during the period 86 - Contract assets transferred to trade receivables (72) - Contract terminations transferred to trade receivables (4) - Revenue recognized included in contract liabilities at the beginning of the year - (232) Increase in contract liabilities during the period - 222 Ending balance, as at February 28, 2019 145 234 Deferred commission cost assets The table below provides a summary of the changes in the deferred commission cost assets recognized from the incremental costs incurred to obtain contracts with customers during the six months ended February 28, 2019 and 2018. We believe these amounts to be recoverable through the revenue earned from the related contracts. The deferred commission cost assets are presented within other current assets (when they will be amortized into net income within twelve months of t he date of the financial statements) or other long-term assets. Six months ended February 28, 2019 2018 Opening balance, as at September 1, 2018 75 57 Additions to deferred commission cost assets 37 31 Amortization recognized on deferred commission cost assets (31) (24) Ending balance, as at February 28, 2019 81 64 Commission costs are amortized over a period ranging from 24 to 36 months . Disaggregation of revenue Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Services Wireline - Consumer 923 926 1,859 1,861 Wireline - Business 148 140 295 280 Wireless 169 134 336 261 1,240 1,200 2,490 2,402 Equipment and other Wireless 78 130 184 174 78 130 184 174 Intersegment eliminations (2) (1) (3) (2) Total revenue 1,316 1,329 2,671 2,574 Remaining performance obligations The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as at February 28, 2019. Within Within 1 year 2 years Total Wireline 682 175 857 Wireless 318 127 445 Total 1,000 302 1,302 When estimating minimum transaction prices allocated to the remaining unfilled, or partially unfulfilled, performance obligations, Shaw applied the practical expedient to not disclose information about remaining performance obligations that have original expected duration of one year or less and for those contracts where we bill the same value as that which is transferred to the customer. |
Other Current Assets
Other Current Assets | 6 Months Ended |
Feb. 28, 2019 | |
Other Current Assets [Abstract] | |
Other Current Assets | 5. OTHER CURRENT ASSETS August 31, 2018 February 28, 2019 (restated, note 2) $ $ Prepaid expenses 122 104 Costs incurred to obtain or fulfill a contract with a customer (1) 53 48 Wireless handset receivables (2) 157 121 332 273 (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, 2018, these amounts relate to the current portion of wireless handset receivables. |
Short-Term Borrowings
Short-Term Borrowings | 6 Months Ended |
Feb. 28, 2019 | |
Short-Term Borrowings [Abstract] | |
Short-Term Borrowings | 6. SHORT-TERM BORROWINGS A summary of our accounts receivable securitization program i s as follows: February 28, 2019 August 31, 2018 $ $ Trade accounts receivable sold to buyer as security 436 429 Short-term borrowings from buyer (40) (40) Over-collateralization 396 389 Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Accounts receivable securitization program, beginning of period 40 - 40 - Proceeds received from accounts receivable securitization - - - - Repayment of accounts receivable securitization - - - - Accounts receivable securitization program, end of period 40 - 40 - |
Provisions
Provisions | 6 Months Ended |
Feb. 28, 2019 | |
Provisions [Abstract] | |
Provisions | 7. PROVISIONS Asset retirement obligations Restructuring (1) Other Total $ $ $ $ Balance as at September 1, 2018 67 276 81 424 Additions - 1 9 10 Accretion 4 - - 4 Reversal - - (2) (2) Payments - (80) (26) (106) Balance as at February 28, 2019 71 197 62 330 Current - 166 79 245 Long-term 67 110 2 179 Balance as at September 1, 2018 67 276 81 424 Current - 172 62 234 Long-term 71 25 - 96 Balance as at February 28, 2019 71 197 62 330 (1) During the second quarter of fiscal 2018, the Company offered a voluntary departure program to a group of eligible employees and in the third and fourth quarters made additional changes to its organizational structure as part of a total business transformation initiative. A total of $77 has been paid in fiscal 2019. The remaining costs are expected to be paid out within the next 23 months. |
Operating, General And Administ
Operating, General And Administrative Expenses And Restructuring Costs | 6 Months Ended |
Feb. 28, 2019 | |
Operating, General And Administrative Expenses And Restructuring Costs [Abstract] | |
Operating, General And Administrative Expenses And Restructuring Costs | 8. OPERATING, GENERAL AND ADMINISTRATIVE EXPENSES AND RESTRUCTURING COSTS Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Employee salaries and benefits (1) 173 598 335 794 Purchase of goods and services 594 665 1,243 1,234 767 1,263 1,578 2,028 (1) For the three and six months ended February 28, 2019, employee salaries and benefits include $- (2018 - $402) and $1 (2018 - $402) in restructuring costs, respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Feb. 28, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 9. LONG-TERM DEBT February 28, 2019 August 31, 2018 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- 5.65% due October 1, 2019 5.69 1,249 1 1,250 1,248 2 1,250 5.50% due December 7, 2020 5.55 499 1 500 499 1 500 3.15% due February 19, 2021 3.17 299 1 300 299 1 300 3.80% due November 2, 2023 3.80 497 3 500 - - - 4.35% due January 31, 2024 4.35 498 2 500 498 2 500 3.80% due March 1, 2027 3.84 298 2 300 298 2 300 4.40% due November 2, 2028 4.40 496 4 500 - - - 6.75% due November 9, 2039 6.89 1,420 30 1,450 1,419 31 1,450 5,256 44 5,300 4,261 39 4,300 Other Burrard Landing Lot 2 Holdings Partnership Various 50 - 50 50 - 50 Total consolidated debt 5,306 44 5,350 4,311 39 4,350 Less current portion(2) 1,251 1 1,252 1 - 1 4,055 43 4,098 4,310 39 4,349 (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 senior notes due October 1, 2019 and the Burrard Landing loans. On November 2, 2018, the Company issued $ 500 senior notes at a rate of 3.80 % due November 2, 2023 and $ 500 senior notes at a rate of 4.40 % due November 2, 2028. On November 21, 2018, the Company amended the terms of its bank credit facility to extend the maturity date to December 202 3. On December 4, 2018, the Company entered into new unsecured letter of credit facilities, under which letters of credit were issued in favour of and filed with Innovation, Science and Economic Development Canada (“ISED”) to fulfill the pre-auction financial deposit requirement with respect to its application to participate in the 600 MHz spectrum auction to be held in March 2019. Under the terms of ISED’s 600 Mhz auction, communications between bidders that would provide ins ights into bidding strategies, including references to preferred blocks, technologies or valuations are precluded until the public announcement of provisional licence winners by ISED . Disclosure of the precise amount of the letters of cred it could be interpreted as a signal of bidding intentions . |
Share Capital
Share Capital | 6 Months Ended |
Feb. 28, 2019 | |
Share Capital [Abstract] | |
Share Capital | 10. SHARE CAPITAL Changes in share capital during the year ended February 28, 2019 are as follows: Class A Shares Class B Non-Voting Shares Series A Preferred Shares Series B Preferred Shares Number $ Number $ Number $ Number $ August 31, 2018 22,420,064 2 484,194,344 4,054 10,012,393 245 1,987,607 48 Issued upon stock option plan exercises - - 1,138,711 26 - - - - Issued pursuant to dividend reinvestment plan - - 4,272,837 107 - - - - Class A conversions to Class B (48,000) - 48,000 - February 28, 2019 22,372,064 2 489,653,892 4,187 10,012,393 245 1,987,607 48 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Feb. 28, 2019 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | 11. EARNINGS (LOSS) PER SHARE Earnings (loss) per share calculations are as follows: Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Numerator for basic and diluted earnings (loss) per share ($) Net income (loss) from continuing operations 155 (175) 341 (58) Deduct: dividends on Preferred Shares (2) (2) (4) (4) Net income (loss) attributable to common shareholders from continuing operations 153 (177) 337 (62) Loss from discontinued operations - - - (6) Loss from discontinued operations attributable to common shareholders - - - (6) Net income (loss) attributable to common shareholders 153 (177) 337 (68) Denominator (millions of shares) Weighted average number of Class A Shares and Class B Non-Voting Shares for basic earnings per share 510 500 509 499 Effect of dilutive securities (1) - 1 - 1 Weighted average number of Class A Shares and Class B Non-Voting Shares for diluted earnings per share 510 501 509 500 Basic earnings (loss) per share ($) Continuing operations 0.30 (0.35) 0.66 (0.12) Discontinued operations - - - (0.01) Attributable to common shareholders 0.30 (0.35) 0.66 (0.13) Diluted earnings (loss) per share ($) Continuing operations 0.30 (0.35) 0.66 (0.12) Discontinued operations - - - (0.01) Attributable to common shareholders 0.30 (0.35) 0.66 (0.13) (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, 2019, 6,232,339 (2018 – 3,771,466) and 6,592,503 (2018 – 2,696,312) options were excluded from the diluted earnings per share calculation, respectively. |
Other Comprehensive Income And
Other Comprehensive Income And Accumulated Other Comprehensive Loss | 6 Months Ended |
Feb. 28, 2019 | |
Other Comprehensive Income And Accumulated Other Comprehensive Loss [Abstract] | |
Other Comprehensive Income And Accumulated Other Comprehensive Loss | 12. OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS Components of other comprehensive income and the related income tax effects for the six months ended February 28, 2019 are as follows: Amount Net $ $ Items that may subsequently be reclassified to income Continuing operations: Change in unrealized fair value of derivatives designated as cash flow hedges 1 1 Adjustment for hedged items recognized in the period (1) (1) Share of other comprehensive income of associates (6) (6) (6) (6) Items that will not be subsequently reclassified to income Remeasurements on employee benefit plans: Continuing operations - - (6) (6) Components of other comprehensive income and the related income tax effects for the six months ended February 28, 2018 are as follows: Amount Income taxes Net $ $ $ Items that may subsequently be reclassified to income Continuing operations: Change in unrealized fair value of derivatives designated as cash flow hedges 4 (1) 3 Adjustment for hedged items recognized in the period 3 (1) 2 Share of other comprehensive income of associates 5 - 5 12 (2) 10 Items that will not be subsequently reclassified to income Remeasurements on employee benefit plans: Continuing operations 86 (23) 63 98 (25) 73 Accumulated other comprehensive loss is comprised of the following: February 28, 2019 August 31, 2018 $ $ Items that may subsequently be reclassified to income Continuing operations: Change in unrealized fair value of derivatives designated as cash flow hedges - - Share of other comprehensive income of associates 12 18 Items that will not be subsequently reclassified to income Remeasurements on employee benefit plans: Continuing operations (57) (57) (45) (39) |
Statements Of Cash Flows
Statements Of Cash Flows | 6 Months Ended |
Feb. 28, 2019 | |
Statements of Cash Flows [Abstract] | |
Statements Of Cash Flows | 13. STATEMENTS OF CASH FLOWS Disclosures with respect to the Consolidated Statements of Cash Flows are as follows: (i) Funds flow from continuing operations Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Net income from continuing operations 155 (175) 341 (58) Adjustments to reconcile net income to funds flow from operations: Amortization 264 255 527 516 Deferred income tax expense 19 (102) 39 (63) Share-based compensation 1 1 2 2 Defined benefit pension plans 2 4 5 8 Equity income of an associate or joint venture (3) (16) (26) (46) Net change in contract asset balances - (16) (10) (41) Other 6 - 5 - Funds flow from continuing operations 444 (49) 883 318 (ii) Interest and income taxes paid and interest received and classified as operating activities are as follows: Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Interest paid 24 28 111 117 Income taxes paid (net of refunds) 45 51 97 164 Interest received 2 1 3 2 (iii) Non-cash transactions: The Consolidated Statements of Cash Flows exclude the following non-cash transactions: Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Issuance of Class B Non-Voting Shares: Dividend reinvestment plan 54 54 107 106 |
Fair Value
Fair Value | 6 Months Ended |
Feb. 28, 2019 | |
Fair Value [Abstract] | |
Fair Value | 14. FAIR VALUE Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Financial instruments The fair value of financial instruments has been determined as follows: (i) Current assets and current l iabilities The fair value of financial instruments included in current assets and current liabilities approximates their carrying value due to their short-term nature. (ii) Investments and other assets and other long-term assets The fair value of publi cly traded investments is determined by quoted market prices. Investments in private entities which do not have quoted market prices in an active market and whose fair value cannot be readily measured are carried at cost. No published market exists for suc h investments. These equity investments have been made as they are considered to have the potential to provide future benefit to the Company and accordingly, the Company has no current intention to dispose of these investments in the near term. The fair va lue of long-term receivables approximates their carrying value as they are recorded at the net present values of their future cash flows, using an appropriate discount rate. (iii) Long-term debt The carrying value of long-term debt is at amortized cost b ased on the initial fair value as determined at the time of issuance or at the time of a business acquisition. The fair value of publicly traded notes is based upon current trading values. The fair value of finance lease obligations is determined by discou nting future cash flows using a rate for loans with similar terms, conditions and maturity dates. The carrying value of bank credit facilities approximates fair value as the debt bears interest at rates that fluctuate with market values. Other notes and de bentures are valued based upon current trading values for similar instruments. (iv) Other long-term liabilities The fair value of contingent consideration arising from a business acquisition is determined by calculating the present value of the probabil ity weighted assessment of the likelihood that revenue targets will be met and the estimated timing of such payments. (v) Derivative financial instruments The fair value of US currency forward purchase contracts is determined by an estimated credit-adjusted mark-to-market valuation using observable forward exchange rates at the end of reporting periods and contract forward rates. The carrying values and es timated fair values of long-term debt and a contingent liability are as follows: February 28, 2019 August 31, 2018 Carrying value Estimated fair value Carrying value Estimated fair value $ $ $ $ Liabilities Long-term debt (including current portion) (1) 5,306 5,801 4,311 4,788 (1) Level 2 fair value – determined by valuation techniques using inputs based on observable market data, either directly or indirectly, other than quoted prices. |
Investments And Other Assets
Investments And Other Assets | 6 Months Ended |
Feb. 28, 2019 | |
Investments And Other Assets [Abstract] | |
Investments And Other Assets | 15. INVESTMENTS AND OTHER ASSETS Corus Entertainment Inc. At February 28, 2019, the Company owned 80 , 630 , 383 (2018 – 80,630,383 ) Corus Class B shares having a market value of $ 484 (2018 - $ 645 ) and representing 38 % (2018 – 39 %) of Corus’ total issued equity of Class A and Class B shares. The Company’s weighted average ownership of Corus for the six months ended February 28, 2019 was 38 % (2018 – 39 %). For the three and six months ended February 28, 2019, the Company received di vidends of $ 5 (2018 - $ 23 ) and $ 5 (2018 - $ 46 ) from Corus, respectively. February 28, 2019 August 31, 2018 Current assets 529 508 Non-current assets 4,341 4,375 Current liabilities (544) (523) Non-current liabilities (2,615) (2,683) Net assets 1,711 1,677 Less: non-controlling interests (151) (154) 1,560 1,523 Carrying amount of the investment less accumulated impairment losses 629 615 Summary financial information for Corus and reconciliation with the carrying amount of the investment in the unaudited interim condensed consolidated balance sheets is as follows: Summarized statement of earnings of Corus: Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Revenue 384 369 852 827 Net income attributable to: Shareholders 6 40 67 118 Non-controlling interest 5 6 12 13 11 46 79 131 Other comprehensive income (loss), attributable to shareholders (18) 16 (16) 13 Comprehensive income (7) 62 63 144 Equity income from associates (1) 3 16 26 46 Other comprehensive income (loss) from equity accounted associates (1) (7) 6 (6) 5 (4) 22 20 51 (1) The Company’s share of income and other comprehensive income reflect the weighted average proportion of Corus net income and other comprehensive income attributable to shareholders for the three and six month periods ended February 28, 2019 and 2018. |
Intangibles and Goodwill
Intangibles and Goodwill | 6 Months Ended |
Feb. 28, 2019 | |
Intangibles And Goodwill [Abstract] | |
Intangibles And Goodwill | 16. INTANGIBLES AND GOODWILL Impairment testing of indefinite-life intangibles and goodwill The Company conducted its annual impairment test on goodwill and indefinite-life intangibles as at February 1, 2019 and the recoverable amount of the cash generating units exceeded their carrying value. A hypothetical decline of 10 % in the recoverable amount of the broadcast rights and licences for the Cable cash generating unit as at February 1, 2019 would not result in any impairment loss. A hypothetical decline of 10 % in the recoverable amount of the broadcast rights and licences for the Satellite cash generating unit as at February 1, 2019 would not result in an impairment loss. A hypothetical decline of 10 % in the recoverable amount of the Wireless ge nerating unit as at February 1, 2019 would not result in any impairment loss. Any changes in economic conditions since the impairment testing conducted as at February 1, 2019 do not represent events or changes in circumstance that would be indicative of i mpairment at February 28, 2019. Significant estimates inherent to this analysis include discount rates and the terminal value. At February 1, 2019, the estimates that have been utilized in the impairment tests reflect any changes in market conditions and are as follows: Terminal value Terminal operating income before Post-tax Terminal restructuring costs and discount rate growth rate amortized multiple Cable 6.5% 1.5% 7.4 Satellite 7.5% -3.0% 5.4 Wireless 9.3% 1.0% 4.5 A sensitivity analysis of significant estimates is conducted as part of every impairment test. With respect to the impairment tests performed in the second quarter, the estimated decline in recoverable amount for the sensitivity of significant estimates is as follows: Estimated decline in recoverable amount Termial value 0.5 times decrease in terminal operating income before 1% increase in 1% decrease in restructuring costs and discount rate terminal growth rate amortization multiple Cable 16.4% 14.2% 4.8% Satellite 8.1% 9.7% 5.6% Wireless 15.2% 7.7% 8.0% |
Basis Of Presentation And Acc_2
Basis Of Presentation And Accounting Policies (Policy) | 6 Months Ended |
Feb. 28, 2019 | |
Basis of Presentation and Accounting Policies | |
Statement Of Compliance | Statement of compliance These condensed interim consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and in compliance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). The condensed interim consolidated financial statements of the Company for the three months ended February 2 8, 2019 were authorized for issue by the Audit Committee on April X, 2019. |
Basis Of Presentation | Basis of presentation These condensed interim consolidated financial statements have been prepared primarily under the historical cost convention except as detailed in the signifi cant accounting policies disclosed in the Company’s consolidated financial statements for the year ended August 31, 2018 and are expressed in millions of Canadian dollars unless otherwise indicated. The condensed interim consolidated statements of income a re presented using the nature classification for expenses. Certain comparative figures have been reclassified to conform to the current period’s presentation. The notes presented in these condensed interim consolidated financial statements include only significant events and transactions occurring since the Company’s last fiscal year end and are not fully inclusive of all matters required to be disclosed by IFRS in the Company’s annual consolidated financial statements. As a result, these condensed inter im consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended August 31, 2018. The condensed interim consolidated financial statements follow the same accounting policies and met hods of application as the most recent annual consolidated financial statements except as noted below. |
Discontinued Operations | d) Discontinued operations The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs when the disposal of a component or a group of components of the Company represents a strategic shift that will have a major impact on the Company’s operations and financial results, and where the operations and cash flows can be clearly distinguish ed, operationally and for financial reporting purposes, from the rest of the Company. The results of discontinued operations are excluded from both continuing operations and business segment information in the condensed interim consolidated financial st atements and the notes to the condensed interim consolidated financial statements, unless otherwise noted, and are presented net of tax in the statement of income for the current and comparative periods. Refer to the Company’s consolidated financial state ments for the year ended August 31, 2018 for further information regarding the Company’s discontinued operations. |
IFRS 15 - Revenue from Contracts with Customers [member] | |
Disclosure of initial application of standards or interpretations [line items] | |
Revenue from contracts with customers, New accounting standards adopted | b) New accounting standards We adopted the following new accounting standards effective September 1, 2018. • IFRS 15 Revenue from Contracts with Customers, was issued in May 2014 and replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programs, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue—Barter Transactions Involving Advertising Services. The new standard requires revenue to be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the considerati on expected to be received in exchange for those goods or services. The principles are to be applied in the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the t ransaction price; (4) allocate the transaction price to the performance obligations in the contract; and, (5) recognize revenue when (or as) the entity satisfies a performance obligation. IFRS 15 also provides guidance relating to the treatment of cont ract acquisition and contract fulfillment costs. The application of IFRS 15 impacted the Company’s reported results, including the classification and timing of revenue recognition and the treatment of costs incurred to obtain contracts with customers. T he application of this standard most significantly affected our Wireless arrangements that bundle equipment and service together, specifically with regards to the timing of recognition and classification of revenue. The timing of recognition and classifica tion of revenue was affected because at contract inception, IFRS 15 requires the estimation of total consideration to be received over the contract term, and the allocation of that consideration to performance obligations in the contract, typically based o n the relative stand-alone selling price of each obligation. This resulted in a decrease to equipment revenue recognized at contract inception, as the discount previously recognized over 24 months is now recognized at contract inception, and a decrease to service revenue recognized over the course of the contract, as a portion of the discount previously allocated solely to equipment revenue is allocated to service revenue. The measurement of total revenue recognized over the life of a contract was unaffect ed by the new standard. IFRS 15 also requires that incremental costs to obtain a contract with a customer (for example, commissions) be capitalized and amortized into operating expenses over the life of a contract on a rational, systematic basis consiste nt with the pattern of the transfer of goods or services to which the asset relates. The Company previously expensed such costs as incurred. The Company’s financial position was also impacted by the adoption of IFRS 15, with new contract asset and contrac t liability categories recognized to reflect differences between the timing of revenue recognition and the actual billing of those goods and services to customers. For purposes of applying the new standard on an ongoing basis, we must make judgments in respect of the new standard. We must make judgments in determining whether a promise to deliver goods or services is considered distinct, how to determine the transact ion prices and how to allocate those amounts amongst the associated performance obligations. We must also exercise judgment as to whether sales-based compensation amounts are costs incurred to obtain contracts with customers that should be capitalized and subsequently amortized on a systematic basis over time. We have made a policy choice to adopt IFRS 15 with full retrospective application, subject to certain practical expedients. As a result, all comparative information in these financial statements has been prepared as if IFRS 15 had been in effect since September 1, 2017. The accounting policies set out in note 2 have been applied in preparing the interim consolidated financial statements as at and for the three and six months ended February 28, 2019, t he comparative information presented for the three and six months ended February 28, 2018, and for the consolidated statements of financial position as at September 1, 2017 and August 31, 2018. Upon adoption of, and transition to, IFRS 15, we elected to utilize the following practical expedients: • Completed contracts that begin and end within the same annual reporting period and those completed before September 1, 2017 are not restated; • Contracts modified prior to September 1, 2017 are not restated. Th e aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations; and • Not disclose, on an annual basis, the unsatisfied portions of performance obligations related to contracts with a duration of one year or less or where the revenue we recognize is equal to the amount invoiced to the customer. Impacts of IFRS 15, Rev enue from Contracts with Customers The effect of transition to IFRS 15 on impacted line items on our condensed Consolidated Statements of Income as disclosed in note 2(f) - “Transition adjustments” for the three and six months ended February 28, 2018, are as follows: Three months ended February 28, 2018 Six months ended February 28, 2018 As Effect of Subsequent to As Effect of Subsequent to (millions of Canadian dollars) reported transition transition reported transition transition Revenue i. 1,355 (26) 1,329 2,604 (30) 2,574 Operating, general and administrative expenses ii. (854) 8 (846) (1,622) 11 (1,611) Other revenue (expense) (2) 3 1 2 3 5 Income tax expense (recovery) (53) (6) (59) 24 (7) 17 Net income from continuing operations (164) (9) (173) (50) (9) (59) i) Allocation of transaction price Revenue recognized at point of sale requires the estimation of total consideration over the contract term and allocation of that consideration to all performance obligations in the contract based on their relative stand-alone selling prices. For Wireless term contracts, equipment revenue recognized at contract inception, as well as service revenue recognized over the course of the contract is lower than previously recognized as noted above. ii) Deferred commissio n costs Costs incurred to obtain or fulfill a contract with a customer were previously expensed as incurred. Under IFRS 15, these costs are capitalized and subsequently amortized as an expense over the life of the customer on a rational, systematic basis c onsistent with the pattern of the transfer of goods and services to which the asset relates. As a result, commission costs are reduced in the period, with an offsetting increase in amortization of capitalized costs over the average life of a customer. Th e effect of transition to IFRS 15 on our disaggregated revenues for the three and six months ended February 28, 2018, are as follows: Three months ended February 28, 2018 Six months ended February 28, 2018 As Effect of Subsequent to As Effect of Subsequent to (millions of Canadian dollars) reported transition transition reported transition transition Services Wireline - Consumer 926 - 926 1,861 - 1,861 Wireline - Business 140 - 140 280 - 280 Wireless 142 (8) 134 273 (12) 261 1,208 (8) 1,200 2,414 (12) 2,402 Equipment and other Wireless 148 (18) 130 192 (18) 174 148 (18) 130 192 (18) 174 Intersegment eliminations (1) - (1) (2) - (2) Total revenue 1,355 (26) 1,329 2,604 (30) 2,574 The effect of transition to IFRS 15 on impacted line items on our condensed Consolidated Statements of Financial Position as disclosed in note 2(f) - “Transition adjustments” as at September 1, 2017 and August 31, 2018 are as follows: As at September 1, 2017 As at August 31, 2018 As Effect Subsequent to As Effect Subsequent to (millions of Canadian dollars) reported of transition transition reported of transition transition Current portion of contract assets i. - 15 15 - 59 59 Other current assets ii. 155 24 179 286 (13) 273 Contract assets i. - 44 44 - 76 76 Other long-term assets ii. 255 (39) 216 300 (102) 198 Accounts payable and accrued liabilities i. 913 (4) 909 971 (1) 970 Unearned revenue i. 211 (211) - 221 (221) - Current portion of contract liabilities i. - 214 214 - 226 226 Deferred credits i. 490 (21) 469 460 (18) 442 Deferred income tax liabilities ii. 1,858 5 1,863 1,894 (6) 1,888 Contract liabilities i. - 21 21 - 18 18 Shareholders' equity 6,154 40 6,194 5,957 22 5,979 i) Contract assets and liabilities Contract assets and liabilities are the result of the difference in timing related to revenue recognized at the beginning of a contract and cash collected. Contract assets arise primarily as a result of the difference between revenue recognized on the sale of wireless device at the onset of a term contract and the cash collected at the point of sale. Contract liabilities are the result of receiving payment related to a customer contract before providing the related go ods or services. We will account for contract assets and liabilities on a contract-by-contract basis, with each contract being presented as a single net contract asset or net contract liability accordingly. ii) Deferred commission cost asset Under IFRS 15 , we will defer commission costs paid to internal and external representatives as a result of obtaining contracts with customers as deferred commission cost assets and amortize them over the pattern of the transfer of goods and services to the customer, wh ich is typically evenly over 24 to 36 months. Refer to note 2(f) “Transition adjustments” for the impact of application of IFRS 15 on our previously reported consolidated statements of cash flows. |
IFRS 9 - Financial instruments [member] | |
Disclosure of initial application of standards or interpretations [line items] | |
Financial Instruments, New accounting standards adopted | IFRS 9 Financial Instruments was revised and issued in July 2014 and replaces IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes updated guidance on the classification and measurement of financial instruments, new guidance on measuring impairment on financial assets, and new hedge acco unting guidance. We have applied IFRS 9, and the related consequential amendments to other IFRSs, on a retrospective basis except for the changes to hedge accounting as described below which were applied on a prospective basis. The adoption of IFRS 9 did n ot have a significant impact on our financial performance or the carrying amounts of our financial instruments as set out in note 2(f) below. IFRS 9 replaces the classification and measurement models in IAS 39 with a single model under which financial as sets are classified and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL) and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. I nvestments and equity instruments are required to be measured by default at FVTPL unless an irrevocable option for each equity instrument is taken to measure at FVOCI. The classification and measurement of financial assets is based on the business model th at the asset is managed and its contractual cash flow characteristics. The adoption of IFRS 9 did not change the measurement bases of our financial assets o Cash and derivative instruments classified as held-for-trading and measured at FVTPL under IAS 39 c ontinue to be measured as such under IFRS 9 with an updated classification of FVTPL o Investments in equity securities not quoted in an active market and where fair value cannot be reliably measured that were classified as available-for-sale and recorded at cost less impairment under IAS 39 are now required to be classified and meas ured at FVTPL under IFRS 9. There has been no change to the measurement of these assets on transition o Trade and other receivables classified as loans and receivables and measured at amortized cost under IAS 39 continue to be measured as such under IFRS 9 with an updated classification of amortized cost For financial liabilities, IFRS 9 retains most of the IAS 39 requirements. We did not choose the option of designating any financial liabilities at FVTPL as such, the adoption of IFRS 9 did not impact our accounting policies for financial liabilities as all liabilities continue to be measured at amortized cost. The impairment of financial assets under IFRS 9 is based on an expected credit loss (ECL) model, as opposed to the incurred loss model in IAS 39. I FRS 9 applies to financial assets measured at amortized cost, including contract assets under IFRS 15, and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified appr oach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in operating, general and administrative expenses in the Consolidated Statement of Income. This c hange did not have a significant impact to our receivables. IFRS 9 does not fundamentally change the types of hedging relationships or the requirements to measure and recognize ineffectiveness; however, it requires us to ensure that the hedge accounting r elationships are aligned with our risk management objective and strategy and to apply a more qualitative and forward-looking approach to assess hedge effectiveness. It also requires that amounts related to cash flow hedges of anticipated purchases of non-f inancial assets settled during the period to be reclassified from accumulated other comprehensive income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, when an anticipated transaction was subsequently recorded as a non- financial asset, the amounts were reclassified from other comprehensive income (loss). In accordance with IFRS 9’s transition provisions for hedge accounting, the Company has applied the IFRS 9 hedge accounting requirements prospectively from the date of initial application without restatement of prior period comparatives. The Company’s qualifying hedging relationships in place as at August 31, 2018 also qualified for hedge accounting in accordance with IFRS 9 and were therefore regarded as continuing hedg ing relationships. As the critical terms of the hedging instruments match those of their corresponding hedged items, all hedging relationships continue to be effective under IFRS 9’s effectiveness assessment requirements. The Company has not designated any hedging relationships under IFRS 9 that would not have met the qualifying hedge accounting criteria under IAS 39. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Disclosure of initial application of standards or interpretations [line items] | |
Disaggregation of revenue | Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Services Wireline - Consumer 923 926 1,859 1,861 Wireline - Business 148 140 295 280 Wireless 169 134 336 261 1,240 1,200 2,490 2,402 Equipment and other Wireless 78 130 184 174 78 130 184 174 Intersegment eliminations (2) (1) (3) (2) Total revenue 1,316 1,329 2,671 2,574 |
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | |
Disclosure of initial application of standards or interpretations [line items] | |
Effect of transition to IFRS 15 and adoption of our new accounting policy - Condensed consolidated Statements of Income | Three months ended February 28, 2018 Six months ended February 28, 2018 Change in Subsequent Change in Subsequent As IFRS 15 accounting to As IFRS 15 accounting to (millions of Canadian dollars) reported transition policy transition reported transition policy transition Revenue 1,355 (26) - 1,329 2,604 (30) - 2,574 Operating, general and administrative expenses (854) 8 - (846) (1,622) 11 - (1,611) Restructuring costs (417) - - (417) (417) - - (417) Amortization: - - Deferred equipment revenue 8 - - 8 17 - - 17 Deferred equipment costs (28) - - (28) (58) - - (58) Property, plant and equipment, intangibles and other (231) - (3) (234) (466) - (7) (473) Operating income from continuing operations (167) (18) (3) (188) 58 (19) (7) 32 Amortization of financing costs – long-term debt (1) - - (1) (2) - - (2) Interest expense (63) - - (63) (124) - - (124) Equity income of an associate or joint venture 16 - - 16 46 - - 46 Other gains (2) 3 - 1 2 3 - 5 Income from continuing operations before income taxes (217) (15) (3) (235) (20) (16) (7) (43) Current income tax expense 42 - - 42 78 - - 78 Deferred income tax expense (95) (6) (1) (102) (54) (7) (2) (63) Net income from continuing operations (164) (9) (2) (175) (44) (9) (5) (58) Loss from discontinued operations, net of tax - - - - (6) - - (6) Net income (164) (9) (2) (175) (50) (9) (5) (64) Net income from continuing operations attributable to: Equity shareholders (164) (9) (2) (175) (44) (9) (5) (58) Loss from discontinued operations attributable to: Equity shareholders - - - - (6) - - (6) Basic earnings (loss) per share Continuing operations (0.33) - - (0.35) (0.10) - - (0.12) Discontinued operations - - - - (0.01) - - (0.01) (0.33) - - (0.35) (0.11) - - (0.13) Diluted earnings (loss) per share Continuing operations (0.33) - - (0.35) (0.10) - - (0.12) Discontinued operations - - - - (0.01) - - (0.01) (0.33) - - (0.35) (0.11) - - (0.13) |
Effect of transition to IFRS 15 and adoption of our new accounting policy - Condensed consolidated Statements of Financial Position | As at September 1, 2017 As at August 31, 2018 Change in Subsequent Change in Subsequent As IFRS 15 accounting to As IFRS 15 accounting to (millions of Canadian dollars) reported transition policy transition reported transition policy transition ASSETS Current Cash 507 - - 507 384 - - 384 Accounts receivable 286 - - 286 255 - (2) 253 Inventories 109 - (50) 59 101 - (40) 61 Other current assets 155 24 - 179 286 (13) - 273 Current portion of contract assets - 15 - 15 - 59 - 59 Assets held for sale 61 - - 61 - - - - 1,118 39 (50) 1,107 1,026 46 (42) 1,030 Investments and other assets 937 - - 937 660 - - 660 Property, plant and equipment 4,344 - 50 4,394 4,672 - 30 4,702 Other long-term assets 255 (39) - 216 300 (102) (1) 197 Deferred income tax assets 4 - - 4 4 - - 4 Intangibles 7,435 - - 7,435 7,482 - - 7,482 Goodwill 280 - - 280 280 - - 280 Contract assets - 44 - 44 - 76 - 76 14,373 44 - 14,417 14,424 20 (13) 14,431 LIABILITIES AND SHAREHOLDERS' EQUITY Current Short-term borrowings - - - - 40 - - 40 Accounts payable and accrued liabilities 913 (4) - 909 971 (1) - 970 Provisions 76 - - 76 245 - - 245 Income taxes payable 151 - - 151 133 - - 133 Unearned revenue 211 (211) - - 221 (221) - - Current portion of contract liabilities - 214 - 214 - 226 - 226 Current portion of long-term debt 2 - - 2 1 - - 1 Liabilities held for sale 39 - - 39 - - - - 1,392 (1) - 1,391 1,611 4 - 1,615 Long-term debt 4,298 - - 4,298 4,310 - - 4,310 Other long-term liabilities 114 - - 114 13 - - 13 Provisions 67 - - 67 179 - - 179 Deferred credits 490 (21) - 469 460 (18) - 442 Contract liabilities - 21 - 21 - 18 - 18 Deferred income tax liabilities 1,858 5 - 1,863 1,894 (6) (4) 1,884 8,219 4 - 8,223 8,467 (2) (4) 8,461 Shareholders' equity Common and preferred shareholders 6,153 40 - 6,193 5,956 22 (9) 5,969 Non-controlling interests in subsidiaries 1 - - 1 1 - - 1 6,154 40 - 6,194 5,957 22 (9) 5,970 14,373 44 - 14,417 14,424 20 (13) 14,431 |
Effect of transition to IFRS 15 and adoption of our new accounting policy - Condensed consolidated Statement of Cash Flow | Three months ended February 28, 2018 Six months ended February 28, 2018 Change in Subsequent Change in Subsequent As IFRS 15 accounting to As IFRS 15 accounting to (millions of Canadian dollars) reported transition policy transition reported transition policy transition OPERATING ACTIVITIES Funds flow from continuing operations (26) (23) - (49) 358 (40) - 318 Net change in non-cash balances related to continuing operations 229 23 1 253 212 40 2 254 Operating activities of discontinued operations - - - - (2) - - (2) 203 - 1 204 568 - 2 570 INVESTING ACTIVITIES Additions to property, plant and equipment (270) - 7 (263) (602) - 20 (582) Additions to equipment costs (net) (10) - - (10) (26) - - (26) Additions to other intangibles (21) - - (21) (56) - - (56) Net additions (reductions) to inventories (9) - (8) (17) (24) - (22) (46) Proceeds on sale of discontinued operations, net of cash sold - - - - 18 - - 18 Net additions to investments and other assets 19 - - 19 42 - - 42 Proceeds on disposal of property, plant and equipment 1 - - 1 8 - - 8 (290) - (1) (291) (640) - (2) (642) FINANCING ACTIVITIES Increase in long-term debt 10 - - 10 10 10 Issue of Class B Non-Voting Shares 6 - - 6 27 - - 27 Dividends paid on Class A Shares and Class B Non-Voting Shares (94) - - (94) (190) - - (190) Dividends paid on Preferred Shares (2) - - (2) (4) - - (4) (80) - - (80) (157) - - (157) Increase (decrease) in cash (167) - - (167) (229) - - (229) Cash, beginning of the period 445 - - 445 507 - - 507 Cash of continuing operations, end of the period 278 - - 278 278 - - 278 |
IFRS 15 - Revenue from Contracts with Customers [member] | |
Disclosure of initial application of standards or interpretations [line items] | |
Effect of transition to IFRS 15 and adoption of our new accounting policy - Condensed consolidated Statements of Income | Three months ended February 28, 2018 Six months ended February 28, 2018 As Effect of Subsequent to As Effect of Subsequent to (millions of Canadian dollars) reported transition transition reported transition transition Revenue i. 1,355 (26) 1,329 2,604 (30) 2,574 Operating, general and administrative expenses ii. (854) 8 (846) (1,622) 11 (1,611) Other revenue (expense) (2) 3 1 2 3 5 Income tax expense (recovery) (53) (6) (59) 24 (7) 17 Net income from continuing operations (164) (9) (173) (50) (9) (59) |
Disaggregation of revenue | Three months ended February 28, 2018 Six months ended February 28, 2018 As Effect of Subsequent to As Effect of Subsequent to (millions of Canadian dollars) reported transition transition reported transition transition Services Wireline - Consumer 926 - 926 1,861 - 1,861 Wireline - Business 140 - 140 280 - 280 Wireless 142 (8) 134 273 (12) 261 1,208 (8) 1,200 2,414 (12) 2,402 Equipment and other Wireless 148 (18) 130 192 (18) 174 148 (18) 130 192 (18) 174 Intersegment eliminations (1) - (1) (2) - (2) Total revenue 1,355 (26) 1,329 2,604 (30) 2,574 |
Effect of transition to IFRS 15 and adoption of our new accounting policy - Condensed consolidated Statements of Financial Position | As at September 1, 2017 As at August 31, 2018 As Effect Subsequent to As Effect Subsequent to (millions of Canadian dollars) reported of transition transition reported of transition transition Current portion of contract assets i. - 15 15 - 59 59 Other current assets ii. 155 24 179 286 (13) 273 Contract assets i. - 44 44 - 76 76 Other long-term assets ii. 255 (39) 216 300 (102) 198 Accounts payable and accrued liabilities i. 913 (4) 909 971 (1) 970 Unearned revenue i. 211 (211) - 221 (221) - Current portion of contract liabilities i. - 214 214 - 226 226 Deferred credits i. 490 (21) 469 460 (18) 442 Deferred income tax liabilities ii. 1,858 5 1,863 1,894 (6) 1,888 Contract liabilities i. - 21 21 - 18 18 Shareholders' equity 6,154 40 6,194 5,957 22 5,979 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Business Segment Information [Abstract] | |
Information On Operations By Segment | Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Revenue Wireline 1,071 1,066 2,154 2,141 Wireless 247 264 520 435 1,318 1,330 2,674 2,576 Intersegment eliminations (2) (1) (3) (2) 1,316 1,329 2,671 2,574 Operating income before restructuring costs and amortization Wireline 497 465 997 912 Wireless 52 18 97 51 549 483 1,094 963 Restructuring costs - (417) (1) (417) Amortization (264) (254) (526) (514) Operating income 285 (188) 567 32 Current taxes Operating 35 43 70 87 Other/non-operating 7 (1) 7 (9) 42 42 77 78 |
Capital Expenditures | Capital expenditures Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Capital expenditures accrual basis Wireline 185 213 380 418 Wireless 84 56 150 173 269 269 530 591 Equipment costs (net of revenue) Wireline 10 12 20 30 Capital expenditures and equipment costs (net) Wireline 195 225 400 448 Wireless 84 56 150 173 279 281 550 621 Reconciliation to Consolidated Statements of Cash Flows Additions to property, plant and equipment 220 263 556 582 Additions to equipment costs (net) 10 10 19 26 Additions to other intangibles 19 21 53 56 Total of capital expenditures and equipment costs (net) per Consolidated Statements of Cash Flows 249 294 628 664 Increase/decrease in working capital and other liabilities related to capital expenditures 43 (12) (66) (37) Decrease in customer equipment financing receivables - 1 1 2 Less: Proceeds on disposal of property, plant and equipment (13) (2) (13) (8) Total capital expenditures and equipment costs (net) reported by segments 279 281 550 621 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Revenue [Abstract] | |
Contract assets and liabilities | Contract Contract Assets Liabilities Opening balance, as at September 1, 2018 135 244 Increase in contract assets from revenue recognized during the period 86 - Contract assets transferred to trade receivables (72) - Contract terminations transferred to trade receivables (4) - Revenue recognized included in contract liabilities at the beginning of the year - (232) Increase in contract liabilities during the period - 222 Ending balance, as at February 28, 2019 145 234 |
Deferred commission cost assets | Six months ended February 28, 2019 2018 Opening balance, as at September 1, 2018 75 57 Additions to deferred commission cost assets 37 31 Amortization recognized on deferred commission cost assets (31) (24) Ending balance, as at February 28, 2019 81 64 |
Disaggregation of revenue | Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Services Wireline - Consumer 923 926 1,859 1,861 Wireline - Business 148 140 295 280 Wireless 169 134 336 261 1,240 1,200 2,490 2,402 Equipment and other Wireless 78 130 184 174 78 130 184 174 Intersegment eliminations (2) (1) (3) (2) Total revenue 1,316 1,329 2,671 2,574 |
Remaining performance obligations | Within Within 1 year 2 years Total Wireline 682 175 857 Wireless 318 127 445 Total 1,000 302 1,302 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | August 31, 2018 February 28, 2019 (restated, note 2) $ $ Prepaid expenses 122 104 Costs incurred to obtain or fulfill a contract with a customer (1) 53 48 Wireless handset receivables (2) 157 121 332 273 (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, 2018, these amounts relate to the current portion of wireless handset receivables. |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Short-Term Borrowings [Abstract] | |
Summary of Accounts Receivable Securitization | February 28, 2019 August 31, 2018 $ $ Trade accounts receivable sold to buyer as security 436 429 Short-term borrowings from buyer (40) (40) Over-collateralization 396 389 |
Reconciliation of Accounts Receivable Securitization | Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Accounts receivable securitization program, beginning of period 40 - 40 - Proceeds received from accounts receivable securitization - - - - Repayment of accounts receivable securitization - - - - Accounts receivable securitization program, end of period 40 - 40 - |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Provisions [Abstract] | |
Schedule Of Provisions | Asset retirement obligations Restructuring (1) Other Total $ $ $ $ Balance as at September 1, 2018 67 276 81 424 Additions - 1 9 10 Accretion 4 - - 4 Reversal - - (2) (2) Payments - (80) (26) (106) Balance as at February 28, 2019 71 197 62 330 Current - 166 79 245 Long-term 67 110 2 179 Balance as at September 1, 2018 67 276 81 424 Current - 172 62 234 Long-term 71 25 - 96 Balance as at February 28, 2019 71 197 62 330 (1) During the second quarter of fiscal 2018, the Company offered a voluntary departure program to a group of eligible employees and in the third and fourth quarters made additional changes to its organizational structure as part of a total business transformation initiative. A total of $77 has been paid in fiscal 2019. The remaining costs are expected to be paid out within the next 23 months. |
Operating, General And Admini_2
Operating, General And Administrative Expenses And Restructuring Costs (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Operating, General And Administrative Expenses And Restructuring Costs [Abstract] | |
Schedule Of Operating, General And Administrative Expenses, And Restructuring Costs | Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Employee salaries and benefits (1) 173 598 335 794 Purchase of goods and services 594 665 1,243 1,234 767 1,263 1,578 2,028 (1) For the three and six months ended February 28, 2019, employee salaries and benefits include $- (2018 - $402) and $1 (2018 - $402) in restructuring costs, respectively. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Long-Term Debt [Abstract] | |
Summary of long-term debt | February 28, 2019 August 31, 2018 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- 5.65% due October 1, 2019 5.69 1,249 1 1,250 1,248 2 1,250 5.50% due December 7, 2020 5.55 499 1 500 499 1 500 3.15% due February 19, 2021 3.17 299 1 300 299 1 300 3.80% due November 2, 2023 3.80 497 3 500 - - - 4.35% due January 31, 2024 4.35 498 2 500 498 2 500 3.80% due March 1, 2027 3.84 298 2 300 298 2 300 4.40% due November 2, 2028 4.40 496 4 500 - - - 6.75% due November 9, 2039 6.89 1,420 30 1,450 1,419 31 1,450 5,256 44 5,300 4,261 39 4,300 Other Burrard Landing Lot 2 Holdings Partnership Various 50 - 50 50 - 50 Total consolidated debt 5,306 44 5,350 4,311 39 4,350 Less current portion(2) 1,251 1 1,252 1 - 1 4,055 43 4,098 4,310 39 4,349 (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 senior notes due October 1, 2019 and the Burrard Landing loans. |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Share Capital [Abstract] | |
Disclosure of Changes in Share Capital | Class A Shares Class B Non-Voting Shares Series A Preferred Shares Series B Preferred Shares Number $ Number $ Number $ Number $ August 31, 2018 22,420,064 2 484,194,344 4,054 10,012,393 245 1,987,607 48 Issued upon stock option plan exercises - - 1,138,711 26 - - - - Issued pursuant to dividend reinvestment plan - - 4,272,837 107 - - - - Class A conversions to Class B (48,000) - 48,000 - February 28, 2019 22,372,064 2 489,653,892 4,187 10,012,393 245 1,987,607 48 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Earnings (Loss) Per Share [Abstract] | |
Disclosure of earnings per share | Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Numerator for basic and diluted earnings (loss) per share ($) Net income (loss) from continuing operations 155 (175) 341 (58) Deduct: dividends on Preferred Shares (2) (2) (4) (4) Net income (loss) attributable to common shareholders from continuing operations 153 (177) 337 (62) Loss from discontinued operations - - - (6) Loss from discontinued operations attributable to common shareholders - - - (6) Net income (loss) attributable to common shareholders 153 (177) 337 (68) Denominator (millions of shares) Weighted average number of Class A Shares and Class B Non-Voting Shares for basic earnings per share 510 500 509 499 Effect of dilutive securities (1) - 1 - 1 Weighted average number of Class A Shares and Class B Non-Voting Shares for diluted earnings per share 510 501 509 500 Basic earnings (loss) per share ($) Continuing operations 0.30 (0.35) 0.66 (0.12) Discontinued operations - - - (0.01) Attributable to common shareholders 0.30 (0.35) 0.66 (0.13) Diluted earnings (loss) per share ($) Continuing operations 0.30 (0.35) 0.66 (0.12) Discontinued operations - - - (0.01) Attributable to common shareholders 0.30 (0.35) 0.66 (0.13) (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, 2019, 6,232,339 (2018 – 3,771,466) and 6,592,503 (2018 – 2,696,312) options were excluded from the diluted earnings per share calculation, respectively. |
Other Comprehensive Income An_2
Other Comprehensive Income And Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Other Comprehensive Income And Accumulated Other Comprehensive Loss [Abstract] | |
Components Of Other Comprehensive Income And The Related Income Tax Effects | Amount Net $ $ Items that may subsequently be reclassified to income Continuing operations: Change in unrealized fair value of derivatives designated as cash flow hedges 1 1 Adjustment for hedged items recognized in the period (1) (1) Share of other comprehensive income of associates (6) (6) (6) (6) Items that will not be subsequently reclassified to income Remeasurements on employee benefit plans: Continuing operations - - (6) (6) Amount Income taxes Net $ $ $ Items that may subsequently be reclassified to income Continuing operations: Change in unrealized fair value of derivatives designated as cash flow hedges 4 (1) 3 Adjustment for hedged items recognized in the period 3 (1) 2 Share of other comprehensive income of associates 5 - 5 12 (2) 10 Items that will not be subsequently reclassified to income Remeasurements on employee benefit plans: Continuing operations 86 (23) 63 98 (25) 73 |
Accumulated Other Comprehensive Loss | February 28, 2019 August 31, 2018 $ $ Items that may subsequently be reclassified to income Continuing operations: Change in unrealized fair value of derivatives designated as cash flow hedges - - Share of other comprehensive income of associates 12 18 Items that will not be subsequently reclassified to income Remeasurements on employee benefit plans: Continuing operations (57) (57) (45) (39) |
Statements Of Cash Flows (Table
Statements Of Cash Flows (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Statements of Cash Flows [Abstract] | |
Schedule Of Funds Flows From Continuing Operations | Three months ended February 28, Six months ended February 28, 2018 2018 2019 (restated, note 2) 2019 (restated, note 2) Net income from continuing operations 155 (175) 341 (58) Adjustments to reconcile net income to funds flow from operations: Amortization 264 255 527 516 Deferred income tax expense 19 (102) 39 (63) Share-based compensation 1 1 2 2 Defined benefit pension plans 2 4 5 8 Equity income of an associate or joint venture (3) (16) (26) (46) Net change in contract asset balances - (16) (10) (41) Other 6 - 5 - Funds flow from continuing operations 444 (49) 883 318 |
Schedule Of Interest And Income Taxes Paid And Interest Received | Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Interest paid 24 28 111 117 Income taxes paid (net of refunds) 45 51 97 164 Interest received 2 1 3 2 |
Schedule Of Non-Cash Transactions | Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Issuance of Class B Non-Voting Shares: Dividend reinvestment plan 54 54 107 106 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Fair Value [Abstract] | |
Carrying Values And Estimated Fair Values | February 28, 2019 August 31, 2018 Carrying value Estimated fair value Carrying value Estimated fair value $ $ $ $ Liabilities Long-term debt (including current portion) (1) 5,306 5,801 4,311 4,788 (1) Level 2 fair value – determined by valuation techniques using inputs based on observable market data, either directly or indirectly, other than quoted prices. |
Investments And Other Assets (T
Investments And Other Assets (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Disclosure of associates [line items] | |
Schedule of Interests in Associates | February 28, 2019 August 31, 2018 Current assets 529 508 Non-current assets 4,341 4,375 Current liabilities (544) (523) Non-current liabilities (2,615) (2,683) Net assets 1,711 1,677 Less: non-controlling interests (151) (154) 1,560 1,523 Carrying amount of the investment less accumulated impairment losses 629 615 Three months ended February 28, Six months ended February 28, 2019 2018 2019 2018 Revenue 384 369 852 827 Net income attributable to: Shareholders 6 40 67 118 Non-controlling interest 5 6 12 13 11 46 79 131 Other comprehensive income (loss), attributable to shareholders (18) 16 (16) 13 Comprehensive income (7) 62 63 144 Equity income from associates (1) 3 16 26 46 Other comprehensive income (loss) from equity accounted associates (1) (7) 6 (6) 5 (4) 22 20 51 (1) The Company’s share of income and other comprehensive income reflect the weighted average proportion of Corus net income and other comprehensive income attributable to shareholders for the three and six month periods ended February 28, 2019 and 2018. |
Intangibles and Goodwill (Table
Intangibles and Goodwill (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Intangibles And Goodwill [Abstract] | |
Changes In Market Condidtions Related To Discount Rates And Terminal Value | Terminal value Terminal operating income before Post-tax Terminal restructuring costs and discount rate growth rate amortized multiple Cable 6.5% 1.5% 7.4 Satellite 7.5% -3.0% 5.4 Wireless 9.3% 1.0% 4.5 |
Schedule Of Sensitivity Analysis Of Significant Estimates | Estimated decline in recoverable amount Termial value 0.5 times decrease in terminal operating income before 1% increase in 1% decrease in restructuring costs and discount rate terminal growth rate amortization multiple Cable 16.4% 14.2% 4.8% Satellite 8.1% 9.7% 5.6% Wireless 15.2% 7.7% 8.0% |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies (Narrative) (Details) | 6 Months Ended |
Feb. 28, 2019 | |
Basis of Presentation and Accounting Policies | |
Standards and amendments to standards issued but not yet effective | As the Company has significant contractual obligations currently being recognized as operating leases, we anticipate that the application of IFRS 16 will result in a material increase to both assets and liabilities and material changes to the timing of the recognition of expenses associated with the lease arrangements although at this stage in the Company’s IFRS 16 implementation process, it is not possible to make reasonable quantitative estimates of the effects of the new standard. This new standard is described in our 2018 consolidated financial statements. We continue to assess the impact of this standard on our consolidated financial statements and we are progressing with the implementation of this standard. As at the date of these interim financial statements, there have been no significant changes to the disclosure related to the implementation of this standard that was included in our 2018 financial statements. We intend to disclose the estimated financial effects of the adoption of IFRS 16 in our 2019 annual audited consolidated financial statements |
Change in accounting policy | Effective September 1, 2018, the Company voluntarily changed its accounting policy related to the treatment of digital cable terminals (“DCTs”) to record them as property, plant and equipment rather than inventory upon acquisition. The Company believes that the change in accounting policy will result in clearer and more relevant financial information as the Company has recently changed its offerings to customers, which has resulted in DCTs being predominantly rented rather than sold to customers. Previously, inventories included DCTs which were held pending rental or sale to the customer at cost or at a subsidized price. When the subscriber equipment was rented, it was transferred to property, plant and equipment and amortized over its useful life and then removed from capital and returned to inventory when returned by a customer. Under the new policy, all DCTs will be classified as property, plant and equipment regardless of whether or not they are currently deployed to a customer as the Company believes that this better reflects the economic substance of its operations. This change in accounting policy has been applied retrospectively. Refer to note 2(f) - “Transition adjustments” below for the impact of this change of accounting policy on previously reported consolidated Statements of Financial Position, consolidated Statements of Income and consolidated Statements of Cash Flows. |
Description of practical expedients used when applying IFRS 15 retrospectively | Upon adoption of, and transition to, IFRS 15, we elected to utilize the following practical expedients: • Completed contracts that begin and end within the same annual reporting period and those completed before September 1, 2017 are not restated; • Contracts modified prior to September 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations; and • Not disclose, on an annual basis, the unsatisfied portions of performance obligations related to contracts with a duration of one year or less or where the revenue we recognize is equal to the amount invoiced to the customer. |
Costs to obtain contracts with customers [member] | Minimum [Member] | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Amortization period, Commission costs | 24 months |
Costs to obtain contracts with customers [member] | Maximum [Member] | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Amortization period, Commission costs | 36 months |
Basis of Presentation and Acc_5
Basis of Presentation and Accounting Policies (Impacts of IFRS 15, Revenue from Contracts with Customers - Condensed consolidated Statements of Income) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of initial application of standards or interpretations [abstract] | ||||
Revenue | $ 1,316 | $ 1,329 | $ 2,671 | $ 2,574 |
Operating, general and administrative expenses | (767) | (846) | (1,577) | (1,611) |
Other revenue (expense) | (4) | 1 | (5) | 5 |
Net income from continuing operations | $ 155 | (175) | $ 341 | (58) |
IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Revenue | 1,329 | 2,574 | ||
Operating, general and administrative expenses | (846) | (1,611) | ||
Other revenue (expense) | 1 | 5 | ||
Income tax expense | (59) | 17 | ||
Net income from continuing operations | (173) | (59) | ||
As reported [member] | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Revenue | 1,355 | 2,604 | ||
Operating, general and administrative expenses | (854) | (1,622) | ||
Other revenue (expense) | (2) | 2 | ||
Net income from continuing operations | (164) | (44) | ||
As reported [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Revenue | 1,355 | 2,604 | ||
Operating, general and administrative expenses | (854) | (1,622) | ||
Other revenue (expense) | (2) | 2 | ||
Income tax expense | (53) | 24 | ||
Net income from continuing operations | (164) | (50) | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Revenue | 1,329 | 2,574 | ||
Operating, general and administrative expenses | (846) | (1,611) | ||
Other revenue (expense) | 1 | 5 | ||
Net income from continuing operations | (175) | (58) | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Revenue | (26) | |||
Effect of transition [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of initial application of standards or interpretations [abstract] | ||||
Revenue | (26) | (30) | ||
Operating, general and administrative expenses | 8 | 11 | ||
Other revenue (expense) | 3 | 3 | ||
Income tax expense | (6) | (7) | ||
Net income from continuing operations | $ (9) | $ (9) |
Basis of Presentation and Acc_6
Basis of Presentation and Accounting Policies (Impacts of IFRS 15, Revenue from Contracts with Customers - Disaggregation of revenue) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | $ 1,316 | $ 1,329 | $ 2,671 | $ 2,574 |
IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 1,329 | 2,574 | ||
as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 1,355 | 2,604 | ||
as previously reported [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 1,355 | 2,604 | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 1,329 | 2,574 | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (26) | |||
Effect of transition [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (26) | (30) | ||
Wireless: Service [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 134 | 261 | ||
Wireless: Equipment and other [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 130 | 174 | ||
Wireless: Equipment and other [Member] | as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 148 | 192 | ||
Wireless: Equipment and other [Member] | The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (18) | (18) | ||
Operating Segments [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 1,318 | 1,330 | 2,674 | 2,576 |
Operating Segments [Member] | Wireless: Equipment and other [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 130 | 174 | ||
Operating Segments [Member] | Wireless: Equipment and other [Member] | as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 148 | 192 | ||
Operating Segments [Member] | Wireless: Equipment and other [Member] | The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (18) | (18) | ||
Intersegment Eliminations [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (2) | (1) | (3) | (2) |
Intersegment Eliminations [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (1) | (2) | ||
Intersegment Eliminations [Member] | as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (1) | (2) | ||
Intersegment Eliminations [Member] | The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 0 | 0 | ||
Reportable Segments [Member] | Operating Segments [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 1,200 | 2,402 | ||
Reportable Segments [Member] | Operating Segments [Member] | as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 1,208 | 2,414 | ||
Reportable Segments [Member] | Operating Segments [Member] | The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (8) | (12) | ||
Wireless [Member] | Operating Segments [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 247 | 264 | 520 | 435 |
Wireline [Member] | Consumer [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 926 | 1,861 | ||
Wireline [Member] | Consumer [Member] | as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 926 | 1,861 | ||
Wireline [Member] | Consumer [Member] | The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 0 | 0 | ||
Wireline [Member] | Business [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 140 | 280 | ||
Wireline [Member] | Business [Member] | as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 140 | 280 | ||
Wireline [Member] | Business [Member] | The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 0 | 0 | ||
Wireline [Member] | Wireless: Service [Member] | as previously reported [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | 142 | 273 | ||
Wireline [Member] | Wireless: Service [Member] | The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | (8) | (12) | ||
Wireline [Member] | Operating Segments [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||||
Total revenue | $ 1,071 | $ 1,066 | $ 2,154 | $ 2,141 |
Basis of Presentation and Acc_7
Basis of Presentation and Accounting Policies (Impacts of IFRS 15, Revenue from Contracts with Customers - Condensed consolidated Statements of Financial Position) (Details) - CAD ($) $ in Millions | Feb. 28, 2019 | Aug. 31, 2018 | Feb. 28, 2018 | Aug. 31, 2017 |
Consolidated Statements of Financial Position (unaudited) | ||||
Current portion of contract assets | $ 74 | $ 59 | $ 15 | |
Other current assets | 332 | 273 | 179 | |
Contract assets | 71 | 76 | 44 | |
Other long-term assets | 172 | 197 | 216 | |
Accounts payable and accrued liabilities | 931 | 970 | 909 | |
Current portion of contract liabilities | 218 | 226 | 214 | |
Deferred credits | 435 | 442 | 469 | |
Deferred income tax liabilities | 1,924 | 1,884 | 1,863 | |
Contract liabilities | 16 | 18 | 21 | |
Shareholders' equity | $ 6,129 | 5,970 | $ 6,036 | 6,194 |
IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Consolidated Statements of Financial Position (unaudited) | ||||
Current portion of contract assets | 59 | 15 | ||
Other current assets | 273 | 179 | ||
Contract assets | 76 | 44 | ||
Other long-term assets | 198 | 216 | ||
Accounts payable and accrued liabilities | 970 | 909 | ||
Unearned Revenue | 0 | 0 | ||
Current portion of contract liabilities | 226 | 214 | ||
Deferred credits | 442 | 469 | ||
Deferred income tax liabilities | 1,888 | 1,863 | ||
Contract liabilities | 18 | 21 | ||
Shareholders' equity | 5,979 | 6,194 | ||
As reported [member] | ||||
Consolidated Statements of Financial Position (unaudited) | ||||
Current portion of contract assets | 0 | 0 | ||
Other current assets | 286 | 155 | ||
Contract assets | 0 | 0 | ||
Other long-term assets | 300 | 255 | ||
Accounts payable and accrued liabilities | 971 | 913 | ||
Current portion of contract liabilities | 0 | 0 | ||
Deferred credits | 460 | 490 | ||
Deferred income tax liabilities | 1,894 | 1,858 | ||
Contract liabilities | 0 | 0 | ||
Shareholders' equity | 5,957 | 6,154 | ||
As reported [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Consolidated Statements of Financial Position (unaudited) | ||||
Current portion of contract assets | 0 | 0 | ||
Other current assets | 286 | 155 | ||
Contract assets | 0 | 0 | ||
Other long-term assets | 300 | 255 | ||
Accounts payable and accrued liabilities | 971 | 913 | ||
Unearned Revenue | 221 | 211 | ||
Current portion of contract liabilities | 0 | 0 | ||
Deferred credits | 460 | 490 | ||
Deferred income tax liabilities | 1,894 | 1,858 | ||
Contract liabilities | 0 | 0 | ||
Shareholders' equity | 5,957 | 6,154 | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | ||||
Consolidated Statements of Financial Position (unaudited) | ||||
Current portion of contract assets | 59 | 15 | ||
Other current assets | 273 | 179 | ||
Contract assets | 76 | 44 | ||
Other long-term assets | 197 | 216 | ||
Accounts payable and accrued liabilities | 970 | 909 | ||
Current portion of contract liabilities | 226 | 214 | ||
Deferred credits | 442 | 469 | ||
Deferred income tax liabilities | 1,884 | 1,863 | ||
Contract liabilities | 18 | 21 | ||
Shareholders' equity | 5,970 | 6,194 | ||
Effect of transition [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Consolidated Statements of Financial Position (unaudited) | ||||
Current portion of contract assets | 59 | 15 | ||
Other current assets | (13) | 24 | ||
Contract assets | 76 | 44 | ||
Other long-term assets | (102) | (39) | ||
Accounts payable and accrued liabilities | (1) | (4) | ||
Unearned Revenue | (221) | (211) | ||
Current portion of contract liabilities | 226 | 214 | ||
Deferred credits | (18) | (21) | ||
Deferred income tax liabilities | (6) | 5 | ||
Contract liabilities | 18 | 21 | ||
Shareholders' equity | $ 22 | $ 40 |
Basis of Presentation and Acc_8
Basis of Presentation and Accounting Policies (Transition adjustments - Condensed consolidated Statements of Income) (Details) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | $ 1,316 | $ 1,329 | $ 2,671 | $ 2,574 |
Operating, general and administrative expenses | (767) | (846) | (1,577) | (1,611) |
Restructuring costs | 0 | (417) | (1) | (417) |
Amortization: | ||||
Deferred equipment revenue | 5 | 8 | 11 | 17 |
Deferred equipment costs | (21) | (28) | (45) | (58) |
Property, plant and equipment, intangibles and other | (248) | (234) | (492) | (473) |
Operating income from continuing operations | 285 | (188) | 567 | 32 |
Amortization of financing costs - long-term debt | 0 | (1) | (1) | (2) |
Interest expense | (68) | (63) | (130) | (124) |
Equity income of an associate or joint venture (note 7) | 3 | 16 | 26 | 46 |
Other revenue (expense) | (4) | 1 | (5) | 5 |
Income from continuing operations before income taxes | 216 | (235) | 457 | (43) |
Current income tax expense | 42 | 42 | 77 | 78 |
Deferred income tax expense | 19 | (102) | 39 | (63) |
Net income from continuing operations | 155 | (175) | 341 | (58) |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (6) |
Net income | 152 | (175) | 339 | (64) |
Net income from continuing operations attributable to: | ||||
Equity shareholders | 155 | (175) | 341 | (58) |
Loss from discontinued operations attributable to: | ||||
Equity shareholders | $ 0 | $ 0 | $ 0 | $ (6) |
Basic earnings (loss) per share | ||||
Continuing operations | $ 0.3 | $ (0.35) | $ 0.66 | $ (0.12) |
Discontinued operations | 0 | 0 | 0 | (0.01) |
Basic earnings (loss) per share | 0.3 | (0.35) | 0.66 | (0.13) |
Diluted earnings (loss) per share | ||||
Continuing operations | 0.3 | (0.35) | 0.66 | (0.12) |
Discontinued operations | 0 | 0 | 0 | (0.01) |
Diluted earnings (loss) per share | $ 0.3 | $ (0.35) | $ 0.66 | $ (0.13) |
IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | $ 1,329 | $ 2,574 | ||
Operating, general and administrative expenses | (846) | (1,611) | ||
Amortization: | ||||
Other revenue (expense) | 1 | 5 | ||
Net income from continuing operations | (173) | (59) | ||
As reported [member] | ||||
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | 1,355 | 2,604 | ||
Operating, general and administrative expenses | (854) | (1,622) | ||
Restructuring costs | (417) | (417) | ||
Amortization: | ||||
Deferred equipment revenue | 8 | 17 | ||
Deferred equipment costs | 28 | (58) | ||
Property, plant and equipment, intangibles and other | (231) | (466) | ||
Operating income from continuing operations | (167) | 58 | ||
Amortization of financing costs - long-term debt | (1) | (2) | ||
Interest expense | (63) | (124) | ||
Equity income of an associate or joint venture (note 7) | 16 | 46 | ||
Other revenue (expense) | (2) | 2 | ||
Income from continuing operations before income taxes | (217) | (20) | ||
Current income tax expense | 42 | 78 | ||
Deferred income tax expense | 95 | (54) | ||
Net income from continuing operations | (164) | (44) | ||
Loss from discontinued operations, net of tax | 0 | (6) | ||
Net income | (164) | (50) | ||
Net income from continuing operations attributable to: | ||||
Equity shareholders | (164) | (44) | ||
Loss from discontinued operations attributable to: | ||||
Equity shareholders | $ 0 | $ (6) | ||
Basic earnings (loss) per share | ||||
Continuing operations | $ (0.33) | $ (0.1) | ||
Discontinued operations | 0 | (0.01) | ||
Basic earnings (loss) per share | (0.33) | (0.11) | ||
Diluted earnings (loss) per share | ||||
Continuing operations | (0.33) | (0.1) | ||
Discontinued operations | 0 | (0.01) | ||
Diluted earnings (loss) per share | $ (0.33) | $ (0.11) | ||
As reported [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | $ 1,355 | $ 2,604 | ||
Operating, general and administrative expenses | (854) | (1,622) | ||
Amortization: | ||||
Other revenue (expense) | (2) | 2 | ||
Net income from continuing operations | (164) | (50) | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | ||||
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | 1,329 | 2,574 | ||
Operating, general and administrative expenses | (846) | (1,611) | ||
Restructuring costs | (417) | (417) | ||
Amortization: | ||||
Deferred equipment revenue | 8 | 17 | ||
Deferred equipment costs | 28 | (58) | ||
Property, plant and equipment, intangibles and other | (234) | (473) | ||
Operating income from continuing operations | (188) | 32 | ||
Amortization of financing costs - long-term debt | (1) | (2) | ||
Interest expense | (63) | (124) | ||
Equity income of an associate or joint venture (note 7) | 16 | 46 | ||
Other revenue (expense) | 1 | 5 | ||
Income from continuing operations before income taxes | (235) | (43) | ||
Current income tax expense | 42 | 78 | ||
Deferred income tax expense | (102) | (63) | ||
Net income from continuing operations | (175) | (58) | ||
Loss from discontinued operations, net of tax | 0 | (6) | ||
Net income | (175) | (64) | ||
Net income from continuing operations attributable to: | ||||
Equity shareholders | (175) | (58) | ||
Loss from discontinued operations attributable to: | ||||
Equity shareholders | $ 0 | $ (6) | ||
Basic earnings (loss) per share | ||||
Continuing operations | $ (0.35) | $ (0.12) | ||
Discontinued operations | 0 | (0.01) | ||
Basic earnings (loss) per share | (0.35) | (0.13) | ||
Diluted earnings (loss) per share | ||||
Continuing operations | (0.35) | (0.12) | ||
Discontinued operations | 0 | (0.01) | ||
Diluted earnings (loss) per share | $ (0.35) | $ (0.13) | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | $ (26) | |||
IFRS 15 transition [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | (26) | $ (30) | ||
Operating, general and administrative expenses | 8 | 11 | ||
Restructuring costs | 0 | 0 | ||
Amortization: | ||||
Deferred equipment revenue | 0 | 0 | ||
Deferred equipment costs | 0 | 0 | ||
Property, plant and equipment, intangibles and other | 0 | 0 | ||
Operating income from continuing operations | (18) | (19) | ||
Amortization of financing costs - long-term debt | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Equity income of an associate or joint venture (note 7) | 0 | 0 | ||
Other revenue (expense) | 3 | 3 | ||
Income from continuing operations before income taxes | (15) | (16) | ||
Current income tax expense | 0 | 0 | ||
Deferred income tax expense | 6 | (7) | ||
Net income from continuing operations | (9) | (9) | ||
Loss from discontinued operations, net of tax | 0 | 0 | ||
Net income | (9) | (9) | ||
Net income from continuing operations attributable to: | ||||
Equity shareholders | (9) | (9) | ||
Loss from discontinued operations attributable to: | ||||
Equity shareholders | $ 0 | $ 0 | ||
Basic earnings (loss) per share | ||||
Continuing operations | $ 0 | $ 0 | ||
Discontinued operations | 0 | 0 | ||
Basic earnings (loss) per share | 0 | 0 | ||
Diluted earnings (loss) per share | ||||
Continuing operations | 0 | 0 | ||
Discontinued operations | 0 | 0 | ||
Diluted earnings (loss) per share | $ 0 | $ 0 | ||
Change in accounting policy [member] | ||||
Consolidated Statements of Income (Loss) (unaudited) | ||||
Revenue | $ 0 | $ 0 | ||
Operating, general and administrative expenses | 0 | 0 | ||
Restructuring costs | 0 | 0 | ||
Amortization: | ||||
Deferred equipment revenue | 0 | 0 | ||
Deferred equipment costs | 0 | 0 | ||
Property, plant and equipment, intangibles and other | (3) | (7) | ||
Operating income from continuing operations | (3) | (7) | ||
Amortization of financing costs - long-term debt | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Equity income of an associate or joint venture (note 7) | 0 | 0 | ||
Other revenue (expense) | 0 | 0 | ||
Income from continuing operations before income taxes | (3) | (7) | ||
Current income tax expense | 0 | 0 | ||
Deferred income tax expense | 1 | (2) | ||
Net income from continuing operations | (2) | (5) | ||
Loss from discontinued operations, net of tax | 0 | 0 | ||
Net income | (2) | (5) | ||
Net income from continuing operations attributable to: | ||||
Equity shareholders | (2) | (5) | ||
Loss from discontinued operations attributable to: | ||||
Equity shareholders | $ 0 | $ 0 | ||
Basic earnings (loss) per share | ||||
Continuing operations | $ 0 | $ 0 | ||
Discontinued operations | 0 | 0 | ||
Basic earnings (loss) per share | 0 | 0 | ||
Diluted earnings (loss) per share | ||||
Continuing operations | 0 | 0 | ||
Discontinued operations | 0 | 0 | ||
Diluted earnings (loss) per share | $ 0 | $ 0 |
Basis of Presentation and Acc_9
Basis of Presentation and Accounting Policies (Transition adjustments - Condensed consolidated Statements of Financial Position) (Details) - CAD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 |
Current | ||||||
Cash | $ 1,288 | $ 1,189 | $ 384 | $ 278 | $ 445 | $ 507 |
Accounts receivable | 276 | 253 | 286 | |||
Inventories | 74 | 61 | 59 | |||
Other current assets | 332 | 273 | 179 | |||
Current portion of contract assets [note 4] | 74 | 59 | 15 | |||
Assets held for sale | 0 | 0 | 61 | |||
Total current assets | 2,044 | 1,030 | 1,107 | |||
Investments and other assets | 676 | 660 | 937 | |||
Property, plant and equipment | 4,747 | 4,702 | 4,394 | |||
Other long-term assets | 172 | 197 | 216 | |||
Deferred income tax assets | 5 | 4 | 4 | |||
Intangibles | 7,469 | 7,482 | 7,435 | |||
Goodwill | 280 | 280 | 280 | |||
Contract assets | 71 | 76 | 44 | |||
Total assets | 15,464 | 14,431 | 14,417 | |||
Current | ||||||
Short-term borrowings | 40 | $ 40 | 40 | 0 | 0 | 0 |
Accounts payable and accrued liabilities | 931 | 970 | 909 | |||
Provisions [note 7] | 234 | 245 | 76 | |||
Income taxes payable | 114 | 133 | 151 | |||
Current portion of contract liabilities | 218 | 226 | 214 | |||
Current portion of long-term debt | 1,251 | 1 | 2 | |||
Liabilities held for sale | 0 | 0 | 39 | |||
Total current liabilities | 2,788 | 1,615 | 1,391 | |||
Long-term debt | 4,055 | 4,310 | 4,298 | |||
Other long-term liabilities | 21 | 13 | 114 | |||
Provisions | 96 | 179 | 67 | |||
Deferred credits | 435 | 442 | 469 | |||
Contract liabilities | 16 | 18 | 21 | |||
Deferred income tax liabilities | 1,924 | 1,884 | 1,863 | |||
Total liabilities | 9,335 | 8,461 | 8,223 | |||
Shareholders' equity | ||||||
Common and preferred shareholders | 6,128 | 5,969 | 6,193 | |||
Non-controlling interests in subsidiaries | 1 | 1 | 1 | |||
Total shareholders' equity | 6,129 | 5,970 | 6,036 | 6,194 | ||
Total liabilities and shareholders' equity | $ 15,464 | 14,431 | 14,417 | |||
IFRS 15 - Revenue from Contracts with Customers [member] | ||||||
Current | ||||||
Other current assets | 273 | 179 | ||||
Current portion of contract assets [note 4] | 59 | 15 | ||||
Other long-term assets | 198 | 216 | ||||
Contract assets | 76 | 44 | ||||
Current | ||||||
Accounts payable and accrued liabilities | 970 | 909 | ||||
Current portion of contract liabilities | 226 | 214 | ||||
Deferred credits | 442 | 469 | ||||
Contract liabilities | 18 | 21 | ||||
Deferred income tax liabilities | 1,888 | 1,863 | ||||
Shareholders' equity | ||||||
Total shareholders' equity | 5,979 | 6,194 | ||||
As reported [member] | ||||||
Current | ||||||
Cash | 384 | 278 | 445 | 507 | ||
Accounts receivable | 255 | 286 | ||||
Inventories | 101 | 109 | ||||
Other current assets | 286 | 155 | ||||
Current portion of contract assets [note 4] | 0 | 0 | ||||
Assets held for sale | 0 | 61 | ||||
Total current assets | 1,026 | 1,118 | ||||
Investments and other assets | 660 | 937 | ||||
Property, plant and equipment | 4,672 | 4,344 | ||||
Other long-term assets | 300 | 255 | ||||
Deferred income tax assets | 4 | 4 | ||||
Intangibles | 7,482 | 7,435 | ||||
Goodwill | 280 | 280 | ||||
Contract assets | 0 | 0 | ||||
Total assets | 14,424 | 14,373 | ||||
Current | ||||||
Short-term borrowings | 40 | 0 | ||||
Accounts payable and accrued liabilities | 971 | 913 | ||||
Provisions [note 7] | 245 | 76 | ||||
Income taxes payable | 133 | 151 | ||||
Unearned revenue | 221 | 211 | ||||
Current portion of contract liabilities | 0 | 0 | ||||
Current portion of long-term debt | 1 | 2 | ||||
Liabilities held for sale | 0 | 39 | ||||
Total current liabilities | 1,611 | 1,392 | ||||
Long-term debt | 4,310 | 4,298 | ||||
Other long-term liabilities | 13 | 114 | ||||
Provisions | 179 | 67 | ||||
Deferred credits | 460 | 490 | ||||
Contract liabilities | 0 | 0 | ||||
Deferred income tax liabilities | 1,894 | 1,858 | ||||
Total liabilities | 8,467 | 8,219 | ||||
Shareholders' equity | ||||||
Common and preferred shareholders | 5,956 | 6,153 | ||||
Non-controlling interests in subsidiaries | 1 | 1 | ||||
Total shareholders' equity | 5,957 | 6,154 | ||||
Total liabilities and shareholders' equity | 14,424 | 14,373 | ||||
As reported [member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||||
Current | ||||||
Other current assets | 286 | 155 | ||||
Current portion of contract assets [note 4] | 0 | 0 | ||||
Other long-term assets | 300 | 255 | ||||
Contract assets | 0 | 0 | ||||
Current | ||||||
Accounts payable and accrued liabilities | 971 | 913 | ||||
Current portion of contract liabilities | 0 | 0 | ||||
Deferred credits | 460 | 490 | ||||
Contract liabilities | 0 | 0 | ||||
Deferred income tax liabilities | 1,894 | 1,858 | ||||
Shareholders' equity | ||||||
Total shareholders' equity | 5,957 | 6,154 | ||||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | ||||||
Current | ||||||
Cash | 384 | 278 | 445 | 507 | ||
Accounts receivable | 253 | 286 | ||||
Inventories | 61 | 59 | ||||
Other current assets | 273 | 179 | ||||
Current portion of contract assets [note 4] | 59 | 15 | ||||
Assets held for sale | 0 | 61 | ||||
Total current assets | 1,030 | 1,107 | ||||
Investments and other assets | 660 | 937 | ||||
Property, plant and equipment | 4,702 | 4,394 | ||||
Other long-term assets | 197 | 216 | ||||
Deferred income tax assets | 4 | 4 | ||||
Intangibles | 7,482 | 7,435 | ||||
Goodwill | 280 | 280 | ||||
Contract assets | 76 | 44 | ||||
Total assets | 14,431 | 14,417 | ||||
Current | ||||||
Short-term borrowings | 40 | 0 | ||||
Accounts payable and accrued liabilities | 970 | 909 | ||||
Provisions [note 7] | 245 | 76 | ||||
Income taxes payable | 133 | 151 | ||||
Unearned revenue | 0 | 0 | ||||
Current portion of contract liabilities | 226 | 214 | ||||
Current portion of long-term debt | 1 | 2 | ||||
Liabilities held for sale | 0 | 39 | ||||
Total current liabilities | 1,615 | 1,391 | ||||
Long-term debt | 4,310 | 4,298 | ||||
Other long-term liabilities | 13 | 114 | ||||
Provisions | 179 | 67 | ||||
Deferred credits | 442 | 469 | ||||
Contract liabilities | 18 | 21 | ||||
Deferred income tax liabilities | 1,884 | 1,863 | ||||
Total liabilities | 8,461 | 8,223 | ||||
Shareholders' equity | ||||||
Common and preferred shareholders | 5,969 | 6,193 | ||||
Non-controlling interests in subsidiaries | 1 | 1 | ||||
Total shareholders' equity | 5,970 | 6,194 | ||||
Total liabilities and shareholders' equity | 14,431 | 14,417 | ||||
IFRS 15 transition [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||||
Current | ||||||
Cash | 0 | 0 | 0 | 0 | ||
Accounts receivable | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | (13) | 24 | ||||
Current portion of contract assets [note 4] | 59 | 15 | ||||
Assets held for sale | 0 | 0 | ||||
Total current assets | 46 | 39 | ||||
Investments and other assets | 0 | 0 | ||||
Property, plant and equipment | 0 | 0 | ||||
Other long-term assets | (102) | (39) | ||||
Deferred income tax assets | 0 | 0 | ||||
Intangibles | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Contract assets | 76 | 44 | ||||
Total assets | 20 | 44 | ||||
Current | ||||||
Short-term borrowings | 0 | 0 | ||||
Accounts payable and accrued liabilities | (1) | (4) | ||||
Provisions [note 7] | 0 | 0 | ||||
Income taxes payable | 0 | 0 | ||||
Unearned revenue | (221) | (211) | ||||
Current portion of contract liabilities | 226 | 214 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Liabilities held for sale | 0 | 0 | ||||
Total current liabilities | 4 | (1) | ||||
Long-term debt | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Provisions | 0 | 0 | ||||
Deferred credits | (18) | (21) | ||||
Contract liabilities | 18 | 21 | ||||
Deferred income tax liabilities | (6) | 5 | ||||
Total liabilities | (2) | 4 | ||||
Shareholders' equity | ||||||
Common and preferred shareholders | 22 | 40 | ||||
Non-controlling interests in subsidiaries | 0 | 0 | ||||
Total shareholders' equity | 22 | 40 | ||||
Total liabilities and shareholders' equity | 20 | 44 | ||||
Change in accounting policy [member] | ||||||
Current | ||||||
Cash | 0 | $ 0 | $ 0 | 0 | ||
Accounts receivable | (2) | 0 | ||||
Inventories | (40) | (50) | ||||
Other current assets | 0 | 0 | ||||
Current portion of contract assets [note 4] | 0 | 0 | ||||
Assets held for sale | 0 | 0 | ||||
Total current assets | (42) | (50) | ||||
Investments and other assets | 0 | 0 | ||||
Property, plant and equipment | 30 | 50 | ||||
Other long-term assets | (1) | 0 | ||||
Deferred income tax assets | 0 | 0 | ||||
Intangibles | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Contract assets | 0 | 0 | ||||
Total assets | (13) | 0 | ||||
Current | ||||||
Short-term borrowings | 0 | 0 | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Provisions [note 7] | 0 | 0 | ||||
Income taxes payable | 0 | 0 | ||||
Unearned revenue | 0 | 0 | ||||
Current portion of contract liabilities | 0 | 0 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Liabilities held for sale | 0 | 0 | ||||
Total current liabilities | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Provisions | 0 | 0 | ||||
Deferred credits | 0 | 0 | ||||
Contract liabilities | 0 | 0 | ||||
Deferred income tax liabilities | (4) | 0 | ||||
Total liabilities | (4) | 0 | ||||
Shareholders' equity | ||||||
Common and preferred shareholders | (9) | 0 | ||||
Non-controlling interests in subsidiaries | 0 | 0 | ||||
Total shareholders' equity | (9) | 0 | ||||
Total liabilities and shareholders' equity | $ (13) | $ 0 |
Basis of Presentation and Ac_10
Basis of Presentation and Accounting Policies (Transition adjustments - Condensed consolidated Statement of Cash Flows) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
OPERATING ACTIVITIES | ||||
Funds flow from continuing operations [note 13] | $ 444 | $ (49) | $ 883 | $ 318 |
Net change in non-cash balances related to continuing operations | (64) | 253 | (168) | 254 |
Operating activities of discontinued operations | 0 | 0 | 0 | (2) |
Operating activities | 380 | 204 | 715 | 570 |
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment [note 3] | (220) | (263) | (556) | (582) |
Additions to equipment costs (net) [note 3] | (10) | (10) | (19) | (26) |
Additions to other intangibles [note 3] | (19) | (21) | (53) | (56) |
Net (additions) reductions to inventories | 30 | (17) | (14) | (46) |
Proceeds on sale of discontinued operations, net of cash sold | 0 | 0 | 0 | 18 |
Net additions to investments and other assets | 3 | 19 | 3 | 42 |
Proceeds on disposal of property, plant and equipment | 13 | 1 | 13 | 8 |
Investing activities | (203) | (291) | (626) | (642) |
FINANCING ACTIVITIES | ||||
Increase in long-term debt | 0 | 10 | 1,000 | 10 |
Issue of Class B Non-Voting Shares | 21 | 6 | 23 | 27 |
Dividends paid on Class A Shares and Class B Non-Voting Shares | (97) | (94) | (195) | (190) |
Dividends paid on Preferred Shares | (2) | (2) | (4) | (4) |
Financing activities | (78) | (80) | 815 | (157) |
Increase (decrease) in cash | 99 | (167) | 904 | (229) |
Cash, beginning of the period | 1,189 | 445 | 384 | 507 |
Cash of continuing operations, end of period | $ 1,288 | 278 | 1,288 | 278 |
As reported [member] | ||||
OPERATING ACTIVITIES | ||||
Funds flow from continuing operations [note 13] | (26) | 358 | ||
Net change in non-cash balances related to continuing operations | 229 | 212 | ||
Operating activities of discontinued operations | 0 | (2) | ||
Operating activities | 203 | 568 | ||
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment [note 3] | (270) | (602) | ||
Additions to equipment costs (net) [note 3] | (10) | (26) | ||
Additions to other intangibles [note 3] | (21) | (56) | ||
Net (additions) reductions to inventories | (9) | (24) | ||
Proceeds on sale of discontinued operations, net of cash sold | 0 | 18 | ||
Net additions to investments and other assets | 19 | 42 | ||
Proceeds on disposal of property, plant and equipment | 1 | 8 | ||
Investing activities | (290) | (640) | ||
FINANCING ACTIVITIES | ||||
Increase in long-term debt | 10 | 10 | ||
Issue of Class B Non-Voting Shares | 6 | 27 | ||
Dividends paid on Class A Shares and Class B Non-Voting Shares | (94) | (190) | ||
Dividends paid on Preferred Shares | (2) | (4) | ||
Financing activities | (80) | (157) | ||
Increase (decrease) in cash | (167) | (229) | ||
Cash, beginning of the period | 445 | 384 | 507 | |
Cash of continuing operations, end of period | 278 | 278 | ||
The effect of transition to IFRS 15 and adoption of our new accounting policy [member] | ||||
OPERATING ACTIVITIES | ||||
Funds flow from continuing operations [note 13] | (49) | |||
Net change in non-cash balances related to continuing operations | 253 | |||
Operating activities of discontinued operations | 0 | |||
Operating activities | 204 | |||
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment [note 3] | (263) | |||
Additions to equipment costs (net) [note 3] | (10) | |||
Additions to other intangibles [note 3] | (21) | |||
Net (additions) reductions to inventories | (17) | |||
Proceeds on sale of discontinued operations, net of cash sold | 0 | |||
Net additions to investments and other assets | 19 | |||
Proceeds on disposal of property, plant and equipment | 1 | |||
Investing activities | (291) | |||
FINANCING ACTIVITIES | ||||
Increase in long-term debt | 10 | |||
Issue of Class B Non-Voting Shares | 6 | |||
Dividends paid on Class A Shares and Class B Non-Voting Shares | (94) | |||
Dividends paid on Preferred Shares | (2) | |||
Financing activities | (80) | |||
Increase (decrease) in cash | (167) | |||
Cash, beginning of the period | 445 | 384 | 507 | |
Cash of continuing operations, end of period | 278 | 278 | ||
IFRS 15 transition [Member] | IFRS 15 - Revenue from Contracts with Customers [member] | ||||
OPERATING ACTIVITIES | ||||
Funds flow from continuing operations [note 13] | (23) | (40) | ||
Net change in non-cash balances related to continuing operations | 23 | 40 | ||
Operating activities of discontinued operations | 0 | 0 | ||
Operating activities | 0 | 0 | ||
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment [note 3] | 0 | 0 | ||
Additions to equipment costs (net) [note 3] | 0 | 0 | ||
Additions to other intangibles [note 3] | 0 | 0 | ||
Net (additions) reductions to inventories | 0 | 0 | ||
Proceeds on sale of discontinued operations, net of cash sold | 0 | 0 | ||
Net additions to investments and other assets | 0 | 0 | ||
Proceeds on disposal of property, plant and equipment | 0 | 0 | ||
Investing activities | 0 | 0 | ||
FINANCING ACTIVITIES | ||||
Increase in long-term debt | 0 | 0 | ||
Issue of Class B Non-Voting Shares | 0 | 0 | ||
Dividends paid on Class A Shares and Class B Non-Voting Shares | 0 | 0 | ||
Dividends paid on Preferred Shares | 0 | 0 | ||
Financing activities | 0 | 0 | ||
Increase (decrease) in cash | 0 | 0 | ||
Cash, beginning of the period | 0 | 0 | 0 | |
Cash of continuing operations, end of period | 0 | 0 | ||
Change in accounting policy [member] | ||||
OPERATING ACTIVITIES | ||||
Funds flow from continuing operations [note 13] | 0 | 0 | ||
Net change in non-cash balances related to continuing operations | 1 | 2 | ||
Operating activities of discontinued operations | 0 | 0 | ||
Operating activities | 1 | 2 | ||
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment [note 3] | 7 | 20 | ||
Additions to equipment costs (net) [note 3] | 0 | 0 | ||
Additions to other intangibles [note 3] | 0 | 0 | ||
Net (additions) reductions to inventories | (8) | (22) | ||
Proceeds on sale of discontinued operations, net of cash sold | 0 | 0 | ||
Net additions to investments and other assets | 0 | 0 | ||
Proceeds on disposal of property, plant and equipment | 0 | 0 | ||
Investing activities | (1) | (2) | ||
FINANCING ACTIVITIES | ||||
Increase in long-term debt | 0 | 0 | ||
Issue of Class B Non-Voting Shares | 0 | 0 | ||
Dividends paid on Class A Shares and Class B Non-Voting Shares | 0 | 0 | ||
Dividends paid on Preferred Shares | 0 | 0 | ||
Financing activities | 0 | 0 | ||
Increase (decrease) in cash | 0 | 0 | ||
Cash, beginning of the period | 0 | $ 0 | 0 | |
Cash of continuing operations, end of period | $ 0 | $ 0 |
Business Segment Information (I
Business Segment Information (Information On Operations By Segment) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of operating segments [line items] | ||||
Revenue | $ 1,316 | $ 1,329 | $ 2,671 | $ 2,574 |
Operating income before restructuring costs and amortization | 549 | 483 | 1,094 | 963 |
Restructuring costs | 0 | (417) | (1) | (417) |
Amortization | (264) | (254) | (526) | (514) |
Operating income (loss) from continuing operations | 285 | (188) | 567 | 32 |
Current income tax expense | 42 | 42 | 77 | 78 |
Operating segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1,318 | 1,330 | 2,674 | 2,576 |
Current income tax expense | 35 | 43 | 70 | 87 |
Other/Non-Operating [Member] | ||||
Disclosure of operating segments [line items] | ||||
Current income tax expense | 7 | (1) | 7 | (9) |
Intersegment Eliminations [Member] | ||||
Disclosure of operating segments [line items] | ||||
Revenue | (2) | (1) | (3) | (2) |
Wireline [Member] | Operating segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1,071 | 1,066 | 2,154 | 2,141 |
Operating income before restructuring costs and amortization | 497 | 465 | 997 | 912 |
Wireless [Member] | Operating segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 247 | 264 | 520 | 435 |
Operating income before restructuring costs and amortization | $ 52 | $ 18 | $ 97 | $ 51 |
Business Segment Information (C
Business Segment Information (Capital Expenditures) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of operating segments [line items] | ||||
Total of capital expenditures and equipment costs (net) | $ 249 | $ 294 | $ 628 | $ 664 |
Additions to property, plant and equipment | 220 | 263 | 556 | 582 |
Additions to equipment costs (net) | 10 | 10 | 19 | 26 |
Additions to other intangibles | 19 | 21 | 53 | 56 |
Less: Proceeds on disposal of property, plant and equipment | (13) | (1) | (13) | (8) |
Operating segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Capital expenditures accrual basis | 269 | 269 | 530 | 591 |
Total of capital expenditures and equipment costs (net) | 279 | 281 | 550 | 621 |
Additions to property, plant and equipment | 220 | 263 | 556 | 582 |
Additions to equipment costs (net) | 10 | 10 | 19 | 26 |
Additions to other intangibles | 19 | 21 | 53 | 56 |
Increase/decrease in working capital and other liabilities related to capital expenditures | 43 | (12) | (66) | (37) |
Decrease in customer equipment financing receivables | 0 | 1 | 1 | 2 |
Less: Proceeds on disposal of property, plant and equipment | (13) | (2) | (13) | (8) |
Wireline [Member] | Operating segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Capital expenditures accrual basis | 185 | 213 | 380 | 418 |
Equipment costs (net of revenue) | 10 | 12 | 20 | 30 |
Total of capital expenditures and equipment costs (net) | 195 | 225 | 400 | 448 |
Wireless [Member] | Operating segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Capital expenditures accrual basis | 84 | 56 | 150 | 173 |
Total of capital expenditures and equipment costs (net) | $ 84 | $ 56 | $ 150 | $ 173 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 6 Months Ended |
Feb. 28, 2019 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Explanation of whether practical expedient is applied for disclosure of transaction price allocated to remaining performance obligations | When estimating minimum transaction prices allocated to the remaining unfilled, or partially unfulfilled, performance obligations, Shaw applied the practical expedient to not disclose information about remaining performance obligations that have original expected duration of one year or less and for those contracts where we bill the same value as that which is transferred to the customer. |
Costs to obtain contracts with customers [member] | Minimum [Member] | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Amortization period, Commission costs | 24 months |
Costs to obtain contracts with customers [member] | Maximum [Member] | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Amortization period, Commission costs | 36 months |
Revenue (Contract Assets and Li
Revenue (Contract Assets and Liabilities) (Details) $ in Millions | 6 Months Ended |
Feb. 28, 2019CAD ($) | |
Contract assets [abstract] | |
Opening balance | $ 135 |
Increase in contract assets from revenue recognized during the period | 86 |
Contract assets transferred to trade receivables | (72) |
Contract terminations transferred to trade receivables | (4) |
Ending balance | 145 |
Contract liabilities [abstract] | |
Opening balance | 244 |
Revenue recognized included in contract liabilities at the beginning of the year | (232) |
Increase in contract liabilities during the period | 222 |
Ending balance | $ 234 |
Revenue (Deferred commission co
Revenue (Deferred commission cost assets) (Details) - CAD ($) $ in Millions | 6 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Opening balance | $ 48 | |
Ending balance | 53 | |
Costs to obtain contracts with customers [member] | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Opening balance | 75 | $ 57 |
Additions to deferred commission cost assets | 37 | 31 |
Amortization recognized on deferred commission cost assets | (31) | (24) |
Ending balance | $ 81 | $ 64 |
Revenue (Disaggregation of reve
Revenue (Disaggregation of revenue) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | $ 1,316 | $ 1,329 | $ 2,671 | $ 2,574 |
Service [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 1,240 | 1,200 | 2,490 | 2,402 |
Equipment [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 78 | 130 | 184 | 174 |
Operating Segments [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 1,318 | 1,330 | 2,674 | 2,576 |
Intersegment Eliminations [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | (2) | (1) | (3) | (2) |
Wireless [Member] | Service [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 169 | 134 | 336 | 261 |
Wireless [Member] | Equipment [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 78 | 130 | 184 | 174 |
Wireless [Member] | Operating Segments [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 247 | 264 | 520 | 435 |
Wireline [Member] | Service [Member] | Consumer [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 923 | 926 | 1,859 | 1,861 |
Wireline [Member] | Service [Member] | Business [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | 148 | 140 | 295 | 280 |
Wireline [Member] | Operating Segments [Member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total revenue | $ 1,071 | $ 1,066 | $ 2,154 | $ 2,141 |
Revenue (Remaining performance
Revenue (Remaining performance obligations) (Details) $ in Millions | Feb. 28, 2018CAD ($) |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | $ 1,302 |
Wireless [Member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | 445 |
Wireline [Member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | 857 |
Within 1 year [member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | 1,000 |
Within 1 year [member] | Wireless [Member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | 318 |
Within 1 year [member] | Wireline [Member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | 682 |
Within 2 years [member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | 302 |
Within 2 years [member] | Wireless [Member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | 127 |
Within 2 years [member] | Wireline [Member] | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Total | $ 175 |
Other Current Assets (Schedule
Other Current Assets (Schedule of Other Current Assets) (Details) - CAD ($) $ in Millions | Feb. 28, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Other Current Assets [Abstract] | |||
Prepaid expenses | $ 122 | $ 104 | |
Costs incurred to obtain or fulfil contract with a customer | 53 | 48 | |
Wireless handset receivables | 157 | 121 | |
Other current assets | $ 332 | $ 273 | $ 179 |
Short-Term Borrowings (Summary
Short-Term Borrowings (Summary of Accounts Receivable Securitization) (Details) - CAD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||||
Short-term borrowings from buyer | $ (40) | $ (40) | $ (40) | $ 0 | $ 0 | $ 0 |
Accounts Receivable Securitization [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Trade accounts receivable sold to buyer as security | 436 | 429 | ||||
Short-term borrowings from buyer | (40) | (40) | ||||
Over-collateralization | $ 396 | $ 389 |
Short-Term Borrowings (Reconcil
Short-Term Borrowings (Reconciliation of Accounts Receivable Securitization) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Short-Term Borrowings [Abstract] | ||||
Accounts receivable securitization program, beginning of period | $ 40 | $ 0 | $ 40 | $ 0 |
Proceeds received from accounts receivable securitization | 0 | 0 | 0 | 0 |
Repayment of accounts receivable securitization | 0 | 0 | 0 | 0 |
Accounts receivable securitization program, end of period | $ 40 | $ 0 | $ 40 | $ 0 |
Provisions (Schedule Of Provisi
Provisions (Schedule Of Provisions) (Details) - CAD ($) $ in Millions | 6 Months Ended | ||
Feb. 28, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Provisions, Beginning | $ 424 | ||
Additions | 10 | ||
Accretion | 4 | ||
Reversal | (2) | ||
Payments | (106) | ||
Provisions, Ending | 330 | ||
Current | 234 | $ 245 | $ 76 |
Long-term | 96 | 179 | $ 67 |
Asset Retirement Obligations [Member] | |||
Disclosure of other provisions [line items] | |||
Provisions, Beginning | 67 | ||
Additions | 0 | ||
Accretion | 4 | ||
Reversal | 0 | ||
Payments | 0 | ||
Provisions, Ending | 71 | ||
Current | 0 | 0 | |
Long-term | 71 | 67 | |
Restructuring [Member] | |||
Disclosure of other provisions [line items] | |||
Provisions, Beginning | 276 | ||
Additions | 1 | ||
Accretion | 0 | ||
Reversal | 0 | ||
Payments | (80) | ||
Provisions, Ending | 197 | ||
Current | 172 | 166 | |
Long-term | 25 | 110 | |
Payments made on severance and employee related provision | 77 | ||
Other [Member] | |||
Disclosure of other provisions [line items] | |||
Provisions, Beginning | 81 | ||
Additions | 9 | ||
Accretion | 0 | ||
Reversal | (2) | ||
Payments | (26) | ||
Provisions, Ending | 62 | ||
Current | 62 | 79 | |
Long-term | $ 0 | $ 2 |
Operating, General And Admini_3
Operating, General And Administrative Expenses And Restructuring Costs (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Operating, General And Administrative Expenses And Restructuring Costs [Abstract] | ||||
Employee salaries and benefits | $ 173 | $ 598 | $ 335 | $ 794 |
Purchase of goods and services | 594 | 665 | 1,243 | 1,234 |
Total operating costs | 767 | 1,263 | 1,578 | 2,028 |
Employee-related restructuring costs | $ 0 | $ 402 | $ 1 | $ 402 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) $ in Millions | Nov. 02, 2018CAD ($) |
Fixed rate senior notes 3.80% due November 2, 2023 [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Principal amount | $ 500 |
Interest rate (as a percent) | 3.80% |
Fixed rate senior notes 4.40% due November 2, 2028 [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Principal amount | $ 500 |
Interest rate (as a percent) | 4.40% |
Long-Term Debt (Summary of long
Long-Term Debt (Summary of long-term debt) (Details) - CAD ($) $ in Millions | Feb. 28, 2019 | Nov. 02, 2018 | Aug. 31, 2018 | Aug. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Less current portion | $ 1,251 | $ 1 | $ 2 | |
Non-current portion | $ 4,055 | 4,310 | $ 4,298 | |
Fixed rate senior notes 5.65% due October 1, 2019 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 5.69% | |||
Fixed rate senior notes 5.65% due October 1, 2019 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 5.65% | |||
Fixed rate senior notes 5.50% due December 7, 2020 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 5.55% | |||
Fixed rate senior notes 5.50% due December 7, 2020 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 5.50% | |||
Fixed rate senior notes 3.15% due February 19, 2021 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 3.17% | |||
Fixed rate senior notes 3.15% due February 19, 2021 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 3.15% | |||
Fixed rate senior notes 3.80% due November 2, 2023 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 3.80% | |||
Fixed rate senior notes 3.80% due November 2, 2023 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 3.80% | |||
Fixed rate senior notes 3.80% due November 2, 2023 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 3.80% | |||
Fixed rate senior notes 4.35% due January 31, 2024 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 4.35% | |||
Fixed rate senior notes 4.35% due January 31, 2024 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 4.35% | |||
Fixed rate senior notes 3.80% due March 1, 2027 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 3.84% | |||
Fixed rate senior notes 3.80% due March 1, 2027 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 3.80% | |||
Fixed rate senior notes 4.40% due November 2, 2028 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 4.40% | |||
Fixed rate senior notes 4.40% due November 2, 2028 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 4.40% | |||
Fixed rate senior notes 4.40% due November 2, 2028 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 4.40% | |||
Fixed rate senior notes 6.75% due November 9, 2039 [Member] | Effective interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 6.89% | |||
Fixed rate senior notes 6.75% due November 9, 2039 [Member] | Fixed interest rate | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate | 6.75% | |||
Long-term debt at amortized cost [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | $ 5,306 | 4,311 | ||
Less current portion | 1,251 | 1 | ||
Non-current portion | 4,055 | 4,310 | ||
Long-term debt at amortized cost [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 5,256 | 4,261 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 5.65% due October 1, 2019 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 1,249 | 1,248 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 5.50% due December 7, 2020 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 499 | 499 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 3.15% due February 19, 2021 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 299 | 299 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 3.80% due November 2, 2023 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 497 | 0 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 4.35% due January 31, 2024 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 498 | 498 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 3.80% due March 1, 2027 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 298 | 298 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 4.40% due November 2, 2028 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 496 | 0 | ||
Long-term debt at amortized cost [Member] | Fixed rate senior notes 6.75% due November 9, 2039 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 1,420 | 1,419 | ||
Long-term debt at amortized cost [Member] | Burrard Landing Lot2 Holdings Partnership [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 50 | 50 | ||
Adjustment for Finance Costs [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 44 | 39 | ||
Less current portion | 1 | 0 | ||
Non-current portion | 43 | 39 | ||
Adjustment for Finance Costs [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 44 | 39 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 5.65% due October 1, 2019 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 1 | 2 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 5.50% due December 7, 2020 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 1 | 1 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 3.15% due February 19, 2021 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 1 | 1 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 3.80% due November 2, 2023 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 3 | 0 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 4.35% due January 31, 2024 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 2 | 2 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 3.80% due March 1, 2027 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 2 | 2 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 4.40% due November 2, 2028 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 4 | 0 | ||
Adjustment for Finance Costs [Member] | Fixed rate senior notes 6.75% due November 9, 2039 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 30 | 31 | ||
Adjustment for Finance Costs [Member] | Burrard Landing Lot2 Holdings Partnership [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 0 | 0 | ||
Long-term Debt Repayable at Maturity [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 5,350 | 4,350 | ||
Less current portion | 1,252 | 1 | ||
Non-current portion | 4,098 | 4,349 | ||
Long-term Debt Repayable at Maturity [member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 5,300 | 4,300 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 5.65% due October 1, 2019 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 1,250 | 1,250 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 5.50% due December 7, 2020 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 500 | 500 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 3.15% due February 19, 2021 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 300 | 300 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 3.80% due November 2, 2023 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 500 | 0 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 4.35% due January 31, 2024 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 500 | 500 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 3.80% due March 1, 2027 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 300 | 300 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 4.40% due November 2, 2028 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 500 | 0 | ||
Long-term Debt Repayable at Maturity [member] | Fixed rate senior notes 6.75% due November 9, 2039 [Member] | Corporate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | 1,450 | 1,450 | ||
Long-term Debt Repayable at Maturity [member] | Burrard Landing Lot2 Holdings Partnership [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total consolidated debt | $ 50 | $ 50 |
Share Capital (Disclosure of Ch
Share Capital (Disclosure of Changes in Share Capital) (Details) $ in Millions | 6 Months Ended | |
Feb. 28, 2019CAD ($)shares | Feb. 28, 2018CAD ($) | |
Disclosure of classes of share capital [line items] | ||
Issued upon stock option plan exercises | $ 22 | $ 27 |
Issued pursuant to dividend reinvestment | $ 0 | $ 0 |
Class A Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares, beginning balance | shares | 22,420,064 | |
Issued upon stock option plan exercises, shares | shares | 0 | |
Issued pursuant to dividend reinvestment, shares | shares | 0 | |
Class A conversions to Class B, shares | shares | (48,000) | |
Number of shares, ending balance | shares | 22,372,064 | |
Beginning balance | $ 2 | |
Issued upon stock option plan exercises | 0 | |
Issued pursuant to dividend reinvestment | 0 | |
Class A conversions to Class B | 0 | |
Ending balance | $ 2 | |
Class B Non-Voting Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares, beginning balance | shares | 484,194,344 | |
Issued upon stock option plan exercises, shares | shares | 1,138,711 | |
Issued pursuant to dividend reinvestment, shares | shares | 4,272,837 | |
Class A conversions to Class B, shares | shares | 48,000 | |
Number of shares, ending balance | shares | 489,653,892 | |
Beginning balance | $ 4,054 | |
Issued upon stock option plan exercises | 26 | |
Issued pursuant to dividend reinvestment | 107 | |
Class A conversions to Class B | 0 | |
Ending balance | $ 4,187 | |
Ifrs Series A Preferred Stock [Member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares, beginning balance | shares | 10,012,393 | |
Issued upon stock option plan exercises, shares | shares | 0 | |
Issued pursuant to dividend reinvestment, shares | shares | 0 | |
Number of shares, ending balance | shares | 10,012,393 | |
Beginning balance | $ 245 | |
Issued upon stock option plan exercises | 0 | |
Issued pursuant to dividend reinvestment | 0 | |
Ending balance | $ 245 | |
Ifrs Series B Preferred Stock [Member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares, beginning balance | shares | 1,987,607 | |
Issued upon stock option plan exercises, shares | shares | 0 | |
Issued pursuant to dividend reinvestment, shares | shares | 0 | |
Number of shares, ending balance | shares | 1,987,607 | |
Beginning balance | $ 48 | |
Issued upon stock option plan exercises | 0 | |
Issued pursuant to dividend reinvestment | 0 | |
Ending balance | $ 48 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Earnings (Loss) Per Share [Abstract] | ||||
Net income (loss) from continuing operations | $ 155 | $ (175) | $ 341 | $ (58) |
Deduct: dividends on Preferred Shares | (2) | (2) | (4) | (4) |
Net income (loss) attributable to common shareholders from continuing operations | 153 | (177) | 337 | (62) |
Loss from discontinued operations | 0 | 0 | 0 | (6) |
Loss from discontinued operations attributable to common shareholders | 0 | 0 | 0 | (6) |
Net income (loss) attributable to common shareholders | $ 153 | $ (177) | $ 337 | $ (68) |
Weighted average number of Class A Shares and Class B Non-Voting Shares for basic earnings per share | 510,000,000 | 500,000,000 | 509,000,000 | 499,000,000 |
Effect of dilutive securities | 0 | 1,000,000 | 0 | 1,000,000 |
Weighted average number of Class A Shares and Class B Non-Voting Shares for diluted earnings per share | 510,000,000 | 501,000,000 | 509,000,000 | 500,000,000 |
Continuing operations | $ 0.3 | $ (0.35) | $ 0.66 | $ (0.12) |
Discontinued operations | 0 | 0 | 0 | (0.01) |
Attributable to common shareholders, Basic | 0.3 | (0.35) | 0.66 | (0.13) |
Continuing operations | 0.3 | (0.35) | 0.66 | (0.12) |
Discontinued operations | 0 | 0 | 0 | (0.01) |
Attributable to common shareholders, Diluted | $ 0.3 | $ (0.35) | $ 0.66 | $ (0.13) |
Antidilutive securities (in shares) | 6,232,339 | 3,771,466 | 6,592,503 | 2,696,312 |
Other Comprehensive Income An_3
Other Comprehensive Income And Accumulated Other Comprehensive Loss (Components Of Other Comprehensive Income And The Related Income Tax Effects) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Change in unrealized fair value of derivatives designated as cash flow hedges | $ 0 | $ (1) | $ 1 | $ 3 |
Change in unrealized fair value of derivatives designated as cash flow hedges, Net | (1) | 1 | (1) | 2 |
Share of other comprehensive income of associates, Net | (7) | 6 | (6) | 5 |
Items that may subsequently be reclassified to net income, Net | (8) | 6 | (6) | 10 |
Remeasurements on employee benefit plans, Net | (9) | 74 | 0 | 63 |
Other comprehensive income, Amount | (6) | 98 | ||
Other comprehensive income, Income taxes | 0 | (25) | ||
Other comprehensive income (loss) | $ (17) | $ 80 | (6) | 73 |
Continuing Operations [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Change in unrealized fair value of derivatives designated as cash flow hedges | 1 | 4 | ||
Change in unrealized fair value of derivatives designated as cash flow hedges, Income taxes | 0 | (1) | ||
Change in unrealized fair value of derivatives designated as cash flow hedges | 1 | 3 | ||
Adjustment for hedged itmes recognized in the period, Amount | (1) | 3 | ||
Adjustment for hedged itmes recognized in the period, Income taxes | 0 | (1) | ||
Change in unrealized fair value of derivatives designated as cash flow hedges, Net | (1) | 2 | ||
Share of other comprehensive income of associates, Amount | (6) | 5 | ||
Share of other comprehensive income of associates, Net | (6) | 5 | ||
Items that may subsequently be reclassified to net income, Amount | (6) | 12 | ||
Items that may subsequently be reclassified to net income, Income taxes | 0 | (2) | ||
Items that may subsequently be reclassified to net income, Net | (6) | 10 | ||
Remeasurements on employee benefit plans, Amount | 86 | |||
Remeasurements on employee benefit plans, Income taxes | (23) | |||
Remeasurements on employee benefit plans, Net | $ 63 |
Other Comprehensive Income An_4
Other Comprehensive Income And Accumulated Other Comprehensive Loss (Accumulated Other Comprehensive Loss) (Details) - Accumulated other comprehensive loss [Member] - CAD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Feb. 28, 2019 | Aug. 31, 2018 | |
Disclosure of analysis of other comprehensive income by item [line items] | ||
Change in unrealized fair value of derivatives designated as cash flow hedges | ||
Share of other comprehensive income of associates | 12 | 18 |
Continuing operations | (57) | (57) |
Accumulated other comprehensive (loss) income | $ (45) | $ (39) |
Statements Of Cash Flows (Sched
Statements Of Cash Flows (Schedule Of Funds Flow From Continuing Operations) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Statements of Cash Flows [Abstract] | ||||
Net income from continuing operations | $ 155 | $ (175) | $ 341 | $ (58) |
Adjustments to reconcile net income to funds flow from operations: | ||||
Amortization | 264 | 255 | 527 | 516 |
Deferred income tax expense | 19 | (102) | 39 | (63) |
Share-based compensation | 1 | 1 | 2 | 2 |
Defined benefit pension plans | 2 | 4 | 5 | 8 |
Equity income of an associate or joint venture | (3) | (16) | (26) | (46) |
Net change in contract asset balances | 0 | (16) | (10) | (41) |
Other | 6 | 0 | 5 | 0 |
Funds flow from continuing operations | $ 444 | $ (49) | $ 883 | $ 318 |
Statements Of Cash Flows (Sch_2
Statements Of Cash Flows (Schedule Of Interest And Income Taxes Paid And Interest Received) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Statements of Cash Flows [Abstract] | ||||
Interest paid | $ 24 | $ 28 | $ 111 | $ 117 |
Income taxes paid (net of refunds) | 45 | 51 | 97 | 164 |
Interest received | $ 2 | $ 1 | $ 3 | $ 2 |
Statements Of Cash Flows (Sch_3
Statements Of Cash Flows (Schedule Of Non-Cash Transactions) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Statements of Cash Flows [Abstract] | ||||
Issuance of Class B Non-Voting Shares: Dividend reinvestment plan | $ 54 | $ 54 | $ 107 | $ 106 |
Fair Value (Carrying Values And
Fair Value (Carrying Values And Estimated Fair Values) (Details) - CAD ($) $ in Millions | Feb. 28, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | |||
Long-term debt | $ 4,055 | $ 4,310 | $ 4,298 |
Level 2 of fair value hierarchy [member] | Carrying Value [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Long-term debt | 5,306 | 4,311 | |
Level 2 of fair value hierarchy [member] | Estimated Fair Value [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Long-term debt | $ 5,801 | $ 4,788 |
Investments And Other Assets (N
Investments And Other Assets (Narrative) (Details) - Corus [Member] - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disclosure of associates [line items] | ||||
Weighted average ownership of investment | 38.00% | 39.00% | ||
Dividends received | $ 5 | $ 23 | $ 5 | $ 46 |
Class B Non-Voting Shares [Member] | ||||
Disclosure of associates [line items] | ||||
Number of shares in associate | 80,630,383 | 80,630,383 | ||
Fair value of shares owned | $ 484 | $ 645 | $ 484 | $ 645 |
Proportion of ownership interest in associate | 38.00% | 39.00% |
Investments And Other Assets (S
Investments And Other Assets (Schedule of Interests in Associates) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | |
Disclosure of associates [line items] | ||||||
Current assets | $ 2,044 | $ 2,044 | $ 1,030 | $ 1,107 | ||
Current liabilities | (2,788) | (2,788) | (1,615) | (1,391) | ||
Less: non-controlling interests | (1) | (1) | (1) | (1) | ||
Equity | 6,129 | $ 6,036 | 6,129 | $ 6,036 | 5,970 | $ 6,194 |
Revenue | 1,316 | 1,329 | 2,671 | 2,574 | ||
Net income (loss) attributable to: Shareholders | 153 | (177) | 337 | (68) | ||
Profit (loss) | 152 | (175) | 339 | (64) | ||
Other comprehensive income (loss), attributable to shareholders | (17) | 80 | (6) | 73 | ||
Comprehensive income | 138 | (95) | 335 | 9 | ||
Corus [Member] | ||||||
Disclosure of associates [line items] | ||||||
Current assets | 529 | 529 | 508 | |||
Non-current assets | 4,341 | 4,341 | 4,375 | |||
Current liabilities | (544) | (544) | (523) | |||
Non-current liabilities | (2,615) | (2,615) | (2,683) | |||
Net assets | 1,711 | 1,711 | 1,677 | |||
Less: non-controlling interests | (151) | (151) | (154) | |||
Equity | 1,560 | 1,560 | 1,523 | |||
Carrying amount of the investment less accumulated impairment loss | 629 | 629 | $ 615 | |||
Revenue | 384 | 369 | 852 | 827 | ||
Net income (loss) attributable to: Non-controlling interest | 6 | 40 | 67 | 118 | ||
Net income (loss) attributable to: Shareholders | 5 | 6 | 12 | 13 | ||
Profit (loss) | 11 | 46 | 79 | 131 | ||
Other comprehensive income (loss), attributable to shareholders | (18) | 16 | (16) | 13 | ||
Comprehensive income | (7) | 62 | 63 | 144 | ||
Equity income from associates | 3 | 16 | 26 | 46 | ||
Other comprehensive income (loss) from equity accounted associates | (7) | 6 | (6) | 5 | ||
Income from associates | $ (4) | $ 22 | $ 20 | $ 51 |
Intangibles and Goodwill (Narra
Intangibles and Goodwill (Narrative) (Details) | 5 Months Ended |
Feb. 01, 2019 | |
Intangibles And Goodwill [Abstract] | |
Hypothetical decline in the recoverable amount of the broadcast rights and licences for the cable cash generation | 10.00% |
Hypothetical decline in the recoverable amount of the broadcast rights and licences for the satellite cash generation | 10.00% |
Hypothetical decline in the recoverable amount of the wireless generating unit | 10.00% |
Intangibles And Goodwill (Chang
Intangibles And Goodwill (Changes In Market Conditions Related To Discount Rates And Terminal Value) (Details) | 5 Months Ended |
Feb. 01, 2019CAD ($) | |
Cable [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Post-tax discount rates (%) | 6.50% |
Terminal growth rates (%) | 1.50% |
Terminal operating income before restructuring costs and amortization multiple | $ 7.4 |
Satellite [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Post-tax discount rates (%) | 7.50% |
Terminal growth rates (%) | (3.00%) |
Terminal operating income before restructuring costs and amortization multiple | $ 5.4 |
Wireless [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Post-tax discount rates (%) | 9.30% |
Terminal growth rates (%) | 1.00% |
Terminal operating income before restructuring costs and amortization multiple | $ 4.5 |
Intangibles And Goodwill (Sched
Intangibles And Goodwill (Schedule Of Sensitivity Analysis Of Significant Estimates) (Details) | 5 Months Ended |
Feb. 01, 2019 | |
Cable [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
1% increase in discount rate | 6.50% |
1% decrease in terminal growth rate | 1.50% |
Satellite [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
1% increase in discount rate | 7.50% |
1% decrease in terminal growth rate | (3.00%) |
Wireless [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
1% increase in discount rate | 9.30% |
1% decrease in terminal growth rate | 1.00% |
Estimated Decline In Recoverable Amount [Member] | Cable [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
1% increase in discount rate | 16.40% |
1% decrease in terminal growth rate | 14.20% |
Decrease in terminal operating income before restructuring costs and amortization multiple | 4.80% |
Estimated Decline In Recoverable Amount [Member] | Satellite [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
1% increase in discount rate | 8.10% |
1% decrease in terminal growth rate | 9.70% |
Decrease in terminal operating income before restructuring costs and amortization multiple | 5.60% |
Estimated Decline In Recoverable Amount [Member] | Wireless [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
1% increase in discount rate | 15.20% |
1% decrease in terminal growth rate | 7.70% |
Decrease in terminal operating income before restructuring costs and amortization multiple | 8.00% |
Uncategorized Items - sjr-20190
Label | Element | Value |
Change in accounting policy adjustments [note 2] [member] | ||
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | $ (9,000,000) |
Transition Adjustments - IFRS 15 [note 2] [member] | ||
Restated balance | sjr_EquityAdjustedBalance | 6,194,000,000 |
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 22,000,000 |
Retained Earnings [Member] | Change in accounting policy adjustments [note 2] [member] | ||
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | (9,000,000) |
Retained Earnings [Member] | Transition Adjustments - IFRS 15 [note 2] [member] | ||
Restated balance | sjr_EquityAdjustedBalance | 2,204,000,000 |
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 22,000,000 |
Noncontrolling Interests [Member] | Change in accounting policy adjustments [note 2] [member] | ||
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Noncontrolling Interests [Member] | Transition Adjustments - IFRS 15 [note 2] [member] | ||
Restated balance | sjr_EquityAdjustedBalance | 1,000,000 |
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Share Premium [Member] | Change in accounting policy adjustments [note 2] [member] | ||
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Share Premium [Member] | Transition Adjustments - IFRS 15 [note 2] [member] | ||
Restated balance | sjr_EquityAdjustedBalance | 30,000,000 |
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Accumulated Other Comprehensive Income [Member] | Change in accounting policy adjustments [note 2] [member] | ||
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Accumulated Other Comprehensive Income [Member] | Transition Adjustments - IFRS 15 [note 2] [member] | ||
Restated balance | sjr_EquityAdjustedBalance | (131,000,000) |
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Issued Capital [Member] | Change in accounting policy adjustments [note 2] [member] | ||
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Issued Capital [Member] | Transition Adjustments - IFRS 15 [note 2] [member] | ||
Restated balance | sjr_EquityAdjustedBalance | 4,090,000,000 |
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | 0 |
Equity Attributable To Owners Of Parent [Member] | Change in accounting policy adjustments [note 2] [member] | ||
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | (9,000,000) |
Equity Attributable To Owners Of Parent [Member] | Transition Adjustments - IFRS 15 [note 2] [member] | ||
Restated balance | sjr_EquityAdjustedBalance | 6,193,000,000 |
Effects of changes in accounting policies [note 2] | ifrs-full_AmountOfReclassificationsOrChangesInPresentation | $ 22,000,000 |