Projecting gains and losses on derivatives in an Unlevered DCF.

The target receives Revenues in USD, but expenses are in various other currencies and as a result does a lot of hedging. On top, the company issued a convertible note, with the equity component (exchangeable feature) classified as a level 3 asset and within 'Derivative Liabilities' on the balance sheet. Derivative assets have been around 15% current assets, derivative liabilities around 33% current liabilities.

-I netted the derivative liabilities against the assets and have net derivative liabilities now - wrong or ok?

-How to project 'Net loss on exchange derivative and capped call transactions' and 'Net unrealized foreign currency loss' in CF from operations? I am setting these to 0 in the projected period as I cannot possibly predict them. But it seems wrong. The target starts CF with a 630 mln loss in the final year and almost erases that when it adds net losses from exchange derivatives.

-How to project Net derivative liabilities or correspondingly Derivative assets/liabilities? I put them at 0 for the projected period at the moment, but seems incorrect. 

Please let me know if not clear and more detail is needed.

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