Hedging Activities

3 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Activities Disclosure [Text Block]

Hedging Activities

In 2012, we entered into a number of forward contracts to hedge Canadian dollar denominated cash flows. These contracts mature over a period of eight years, ending in 2020, and have been designated for hedge accounting. Accordingly, changes in the fair values of these contracts are recorded to accumulated other comprehensive income and reclassified into earnings in the same period in which the hedged transaction affects earnings. At June 30, 2013 and March 31, 2013, the gross notional values of these contracts, designated for hedge accounting, were $503 million. No amounts were reclassified to earnings in the quarters ended June 30, 2013 and 2012.

In the first quarter of 2013, we settled a forward contract to hedge British pound denominated cash flows with a gross notional value of $151 million. In the third quarter of 2013, we entered into an additional forward contract to hedge a separately identifiable Canadian dollar denominated cash flow with a notional value of $177 million. This contract was renewed and was settled on its maturity in the first quarter of 2014. Neither of these contracts was designated for hedge accounting and accordingly, changes in the fair values of these contracts were recorded directly in earnings.  At June 30, 2013 and March 31, 2013, the gross notional value of the Canadian dollar contract was nil and $172 million.  Amounts recorded to earnings were not material for the quarters ended June 30, 2013 and 2012.

Refer to Financial Note 9, "Fair Value Measurements," for more information on these recurring fair value measurements.