Burger King 2009 Annual Report Download - page 98

Table of Contents
BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
compensation deferred by participants in the Company’s Executive Retirement Plan and to fund future deferred compensation
obligations.
As of June 30, 2009 Fair Value Measurements at June 30, 2009
Carrying Value and Balance Sheet Location Assets (Liabilities)
Quoted Prices in Significant
Prepaid and Other Active Markets Other Significant
Other Other Deferrals for Identical Observable Unobservable
Current Other Accrued and Instruments Inputs Inputs
Description Assets Assets Liabilities Liabilities (Level 1) (Level 2) (Level 3)
Derivatives designated as cash flow
hedging instruments:
Interest rate swaps $ — $ — $ — $ (32.4) $ — $ (32.4) $ —
Total $ — $ — $ — $ (32.4) $ — $ (32.4) $ —
Derivatives not designated as
hedging instruments:
Foreign currency forward contracts
(asset) $ 0.3 $ — $ — $ — $ — $ 0.3 $ —
Foreign currency forward contracts
(liability) $ — $ — $ (20.3) $ — $ — $ (20.3) $ —
Total $ 0.3 $ — $ (20.3) $ — $ — $ (20.0) $ —
Other investments:
Other investments $ — $ 17.9 $ — $ — $ 17.9 $ — $ —
Total $ — $ 17.9 $ — $ — $ 17.9 $ — $ —
Year Ended June 30, 2009
Foreign Currency
Interest Rate Swaps Forward Contracts Total
Derivatives designated as cash flow hedging instruments:
Gain (loss) recognized in other comprehensive income (effective
portion) $ (39.2) $ — $ (39.2)
Gain (loss) reclassified from AOCI into interest expense, net(a) $ 10.5 $ — $ 10.5
Gain (loss) recognized in interest expense, net (ineffective
portion)(b) $ — $ — $ —
Derivatives not designated as hedging instruments:
Gain (loss) recognized in other (income) expense, net $ — $ 43.2 $ 43.2
(a) Includes $1.3 million of gain for the year ended June 30, 2009 related to the terminated hedges.
(b) For the year ended June 30, 2009, the Company determined that the amount of ineffectiveness from cash flow hedges was not
material.
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