Not speculating, but losing 150 million to financing interest payments of 200 million. GAAP derivative loses should provide specifics on each debt agreement, as Canwest says has derivative swaps program for each debt.
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Interest rate and foreign currency swap losses(-110,860 lost 2004) ( -23,015 lost in 2003 )
Interest rate and foreign currency swap losses(-138,639 lost 2006 ) ( -121,064 lost in 2005)
Interest rate and foreign currency swap losses(+15,955 made 2007) (-138,639 lost in 2006)
Interest rate and foreigh currency swap losses(-150 million lost in 2009) (-54 million lost in 2008 )
CONSOLIDATED FINANCIAL STATEMENTS 2004 p12
Quote, "Derivative financial instruments are used to reduce foreign currency and interest rate risk on the Company’s debt. The Company does not enter into financial instruments for trading or speculative purposes.
The Company’s policy is to designate each derivative financial instrument as a hedge of a specifically identified debt instrument at the time the Company enters into the derivative financial instrument.
Interest rate swap agreements are used as part of the Company’s program to manage the fixed and floating interest rate mix of the Company’s total debt portfolio and related overall cost of borrowing. The interest differential to be paid or received under interest rate swap agreements is recognized as an adjustment to interest expense.
Foreign currency interest rate swap agreements are used to manage exchange and interest rate exposures related to debt instruments denominated in foreign currencies. Translation gains and losses on the principal swapped are offset by corresponding translation losses and gains on the related debt in earnings. The Company translates its foreign currency denominated debt that is hedged by foreign currency interest rate swaps at the rate implicit in the swap agreement.
Gains and losses on terminations of interest rate and foreign currency interest rate swap agreements are deferred and amortized as an adjustment to interest expense related to the underlying debt over the remaining term of the original contract life of the terminated swap agreement.
In the event of early extinguishment of the debt obligations, the Company may continue to hold the related derivative financial instruments. The realized or unrealized gain or loss from these swaps is recognized in earnings, and the swaps are recorded on the balance sheet at fair value. Subsequent changes in the fair value of overhanging swaps are recognized in earnings."
