Long-term debt decreased $346 million due to the aforementioned reclassification of the 7.5% $350 million senior notes.
Other long-term liabilities decreased $320 million primarily due to the $300 million contribution to a retirement compensation arrangement trust ("the RCA") in order to partially fund its non-contributory defined benefit pension plan and a decrease in CRTC benefit obligations partially offset by current year pension expense.
Deferred credits increased $247 million due to the $250 million received from Rogers in respect of the option to acquire the wireless spectrum licenses.
Deferred income tax liabilities, net of deferred income tax assets, increased $26 million primarily due to current year expense partially offset by the sale of Mountain Cable and the aforementioned reclassification of amounts in respect of Historia and Series+.
Shareholders' equity increased $387 million primarily due to increases in share capital of $147 million and retained earnings of $268 million partially offset by a decrease in non-controlling interests of $27 million. Share capital increased due to the issuance of 6,592,827 Class B Non-Voting Shares under the Company's option plan and Dividend Reinvestment Plan ("DRIP"). As of June 15, 2013, share capital is as reported at May 31, 2013 with the exception of the issuance of a total of 14,920 Class B Non-Voting Shares upon exercise of options under the Company's option plan subsequent to the quarter end. Retained earnings increased due to current year earnings of $635 million partially offset by dividends of $347 million and a charge of $20 million representing the difference between the consideration paid and the carrying value of the additional 20% interest acquired in Food Network Canada. Non-controlling interests decreased as their share of earnings was exceeded by the distributions declared during the period and the impact of the aforementioned change in ownership of Food Network Canada.
LIQUIDITY AND CAPITAL RESOURCES
In the current year, the Company generated $543 million of free cash flow. Shaw used its free cash flow along with cash of $137 million, the net proceeds of $589 million from the transactions with Rogers, proceeds on issuance of Class B Non-Voting Shares of $48 million and other net items of $7 million to repay the 6.1% $450 million senior notes, fund $300 million in discretionary contributions to the RCA in respect of its non-contributory defined benefit pension plan, pay common share dividends of $239 million, purchase Envision for $222 million, invest an additional net $63 million in program rights and fund $50 million of accelerated capital spend. Due to timing, the net proceeds from the Rogers transactions have been temporarily used in ongoing operations to the extent the cash was not required to fund accelerated capital investments.
On December 5, 2012 Shaw received the approval of the TSX to renew its normal course issuer bid to purchase its Class B Non-Voting Shares for a further one year period. The Company is authorized to acquire up to 20,000,000 Class B Non-Voting Shares during the period December 7, 2012 to December 6, 2013. No shares have been repurchased during the current year.
To allow for timely access to capital markets, the Company filed a short form base shelf prospectus with securities regulators in Canada and the U.S. on May 13, 2013. The shelf prospectus allows for the issue up to an aggregate $4 billion of debt and equity securities over a 25 month period.
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