Arrow Electronics 2010 Annual Report Download - page 66

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ARROW ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share data)
64
Derivative Instruments
The company uses various financial instruments, including derivative financial instruments, for purposes
other than trading. Derivatives used as part of the company's risk management strategy are designated
at inception as hedges and measured for effectiveness both at inception and on an ongoing basis.
The fair values of derivative instruments in the consolidated balance sheet is as follows at December 31:
Asset/(Liability) Derivatives
Balance Sheet Fair Value
Location 2010 2009
Derivative instruments designated as hedges:
Interest rate swaps designated as fair value
hedges Other current assets $ - $ 2,036
Interest rate swaps designated as fair value
hedges Other assets 14,756 9,556
Interest rate swaps designated as fair value
hedges Other liabilities (674) -
Cross-currency swaps designated as net
investment hedges Short-term borrowings - (41,943)
Cross-currency swaps designated as net
investment hedges Long-term debt - (12,497)
Foreign exchange contracts designated as cash
flow hedges Other current assets 271 406
Foreign exchange contracts designated as cash
flow hedges Accrued expenses (177) (272)
Total derivative instruments designated as
hedging instruments 14,176 (42,714)
Derivative instruments not designated as
hedges:
Foreign exchange contracts Other current assets 1,778 2,362
Foreign exchange contracts Accrued expenses (2,366) (1,952)
Total derivative instruments not designated as
hedging instruments (588) 410
Total $ 13,588 $ (42,304)