RE: 4th QuarterRead carefully below, I hope this resolves this debate once and for all, from the conference,
Actual relized losses are 135 million for third quarter
realized losses therefore, become part of operating earnings, whereas the unrealized are excluded from operating earnings.
below excerpt from the conference.
As we discussed previously, the unrealized hedging gains and losses in the quarter result from the changes to forward prices and expiry of contracts during the period. As contracts expire, losses become realized and reduce revenue and operating earnings. During the quarter this combination had resulted in a realized net after-tax loss of 135 million or $0.15 per share diluted. On an unrealized basis. these changes result in a net $631 million of unrealized after-tax loss, against net earnings from continuing operations for the quarters. So from an accounting perspective, the realized losses are recognized in our revenue line and, therefore, become part of operating earnings, whereas the unrealized are excluded from operating earnings. The after-tax foreign exchange gain on Canadian issued U.S. dollar debt for the quarter was $166 million. These noncash gains and losses, combined with our strong operating earnings from continuing operations of $731 million resulted in net earnings for the quarter of $266 million or $0.30 per share diluted.