Shaw 2009 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 2009 Shaw annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

The following table presents the gains and losses, excluding tax effects, for 2009 on derivatives
designated as cash flow hedges to manage currency risks.
$ Location $ Location $
Gain (Loss)
Recognized in Other
Comprehensive Income
(Effective Portion)
Gain (Loss) Reclassified
from Other Comprehensive
Income into Income
(Effective Portion)
Gain (Loss) Reclassified
from Other Comprehensive
Income into
Income (Ineffective Portion)
Cross-currency
interest rate
exchange
agreements 24,799 Other gains 31,845 Other gains –
Interest expense (26,313) Other gains –
US currency
forward
purchase
contracts 15,278 Equipment costs 11,795 Other gains –
40,077 17,327 –
The Company’s estimate of the net amount of existing losses arising from the unrealized fair value of
derivatives designated as cash flow hedges which are reported in accumulated other comprehensive
income and would be reclassified to net income in the next twelve months, excluding tax effects, is
$3,337 for foreign exchange forwards and $8,892 for cross-currency interest rate exchange
agreements based on contractual maturity. As a result of the redemption of the US $225,000
7.25% senior notes and $300,000 7.20% senior notes subsequent to year end (see note 24), there
is an additional $34,746 of existing losses at August 31, 2009 in respect of cross-currency interest
rate exchange agreements which will be reclassified to income in 2010.
The following table presents gains and losses, excluding tax effects, arising from derivatives in
2009 that were not designated as hedges.
Location $
Loss Recognized in
Income
US currency forward purchase contracts Other gains (78)
(iii) Subsequent Events
In 2009, the Company adopted SFAS No 165 “Subsequent Events” which establishes standards
for accounting for and disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. The application of this standard had no
impact on the Company’s consolidated financial statements other than disclosure of the date
through which subsequent events have been evaluated.
103
Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2009, 2008 and 2007
[all amounts in thousands of Canadian dollars except share and per share amounts]