Shaw 2010 Annual Report Download - page 111

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Level 2 Inputs for the asset or liability are based on observable market data, either directly or
indirectly, other than quoted prices.
Level 3 Inputs for the asset or liability that are not based on observable market data.
The following tables represent the Company’s derivative instruments measured at fair value on a
recurring basis and the basis for that measurement:
Carrying
value
$
Quoted prices in
active markets for
identical instrument
(Level 1)
$
Significant other
observable inputs
(Level 2)
$
Significant
unobservable inputs
(Level 3)
$
August 31, 2010
Assets
Cross-currency interest rate
exchange agreement 56,716 – 56,716 –
US currency forward purchase
contracts 10,002 – 10,002 –
66,718 – 66,718 –
Liabilities
Cross-currency interest rate
exchange agreements 86,222 – 86,222 –
Carrying
value
$
Quoted prices in
active markets for
identical instrument
(Level 1)
$
Significant other
observable inputs
(Level 2)
$
Significant
unobservable inputs
(Level 3)
$
August 31, 2009
Liabilities
Cross-currency interest rate
exchange agreements 462,273 – 462,273 –
US currency forward purchase
contracts 3,337 – 3,337 –
465,610 – 465,610 –
Derivative instruments and hedging activities
During the year, the Company redeemed all of its outstanding US $440,000 8.25% senior notes
due April 11, 2010, US $225,000 7.25% senior notes due April 6, 2011 and US $300,000
7.20% senior notes due December 15, 2011. In conjunction with the redemption of the
US $440,000 and US $225,000 senior notes, the Company paid $146,065 to unwind and settle
a portion of the principal component of two of the associated cross-currency interest rate swaps and
simultaneously entered into offsetting currency swap transactions for the remaining outstanding
notional principal amounts (i.e. the end of swap notional exchanges) and paid $145,855 in respect
of these offsetting swap transactions. The derivatives have been classified as held for trading as
107
Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2010, 2009 and 2008
[all amounts in thousands of Canadian dollars except share and per share amounts]