Shaw 2011 Annual Report Download - page 144

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2011, 2010 and 2009
[all amounts in thousands of Canadian dollars except share and per share amounts]
(10) Interest costs
Under US GAAP, interest costs are capitalized as part of the historical cost of acquiring
certain qualifying assets which require a period of time to prepare for their intended use.
Interest capitalization is not required under Canadian GAAP.
(11) Income taxes
Income taxes reflect various items including the tax effect of the differences identified
above, the impact of future income tax rate reductions on those differences and an
adjustment for the tax benefit related to capital losses that cannot be recognized for US
GAAP.
(b) Advertising costs
Advertising expenditures, including advertising production costs, are expensed when incurred
for both Canadian and US GAAP and for 2011, amounted to $96,650 (2010 – $66,138; 2009
– $52,384).
(c) Derivatives and hedging activity
The following table presents the gains and losses, excluding tax effects, on derivatives
designated as cash flow hedges to manage currency risks for 2011.
Loss recognized in
other comprehensive
income (effective
portion)
Loss reclassified from other
comprehensive
income into
income (effective portion)
Loss reclassified from other
comprehensive
income into income (ineffective
portion)
$ Location $ Location $
US currency forward
purchase contracts (4,245) Equipment costs (5,805) Other gains –
The following table presents the gains and losses, excluding tax effects, on derivatives
designated as cash flow hedges to manage currency risks for 2010.
Loss recognized in other
comprehensive income
(effective portion)
Loss reclassified from other
comprehensive
income into
income (effective portion)
Loss reclassified from other
comprehensive
income into income (ineffective
portion)
$ Location $ Location $
Cross-currency interest
rate exchange
agreements (58,657) Other gains (40,505) Other gains –
Interest expense (11,671)
Loss on derivative
instruments –
US currency forward
purchase contracts (4,476) Equipment costs (7,813) Other gains –
(63,133) (59,989) –
140