Just as accounting rule makers were urging companies to expand their
derivatives disclosure, while also considering new mandatory reporting on
the subject, a sudden burst of interest rate volatility socked several major
corporations with huge trading losses. Procter & Gamble took a one-time
charge of $102 million on two interest rate swaps it had entered into in the
United States and Germany. Air Products & Chemicals charged off $60 million
on five swap contracts, acknowledging that with hindsight, its risk
analysis had been faulty. Dell Computer sustained a $26.3 million loss on
derivatives and other investments related to interest rates. (All figures are on
an aftertax basis.)