Shaw 2010 Annual Report Download - page 112

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they are not accounted for as hedging instruments. In addition, upon redemption of the
US $300,000 senior notes, the Company entered into amended agreements with the
counterparties of the cross-currency agreements to fix the settlement of the principal liability
on December 15, 2011 at $162,150. At August 31, 2010, the carrying amount of the liability was
$158,661. As a result, there is no further foreign exchange rate exposure in respect of the principal
component of the cross-currency interest rate exchange agreements.
Upon redemption of the underlying hedged US denominated debt, the associated cross-currency
interest rate exchange agreements no longer qualify as cash flow hedges and the remaining loss in
accumulated other comprehensive loss of $50,121 was reclassified to the income statement.
The following table presents the gains and losses, excluding tax effects, on derivatives designated
as cash flow hedges to manage currency risks for 2010.
$ 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 (58,657) Other gains (40,505) Other gains –
Interest expense (11,671) Loss on financial
instruments –
US currency
forward
purchase
contracts 5,526 Equipment costs (7,813) Other gains –
(53,131) (59,989) –
108
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]