Cisco 2015 Annual Report Download - page 110

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The fair values of the Company’s derivative instruments and the line items on the Consolidated Balance Sheets to which they
were recorded are summarized as follows (in millions):
DERIVATIVE ASSETS DERIVATIVE LIABILITIES
Balance Sheet Line Item
July 25,
2015
July 26,
2014 Balance Sheet Line Item
July 25,
2015
July 26,
2014
Derivatives designated as hedging instruments:
Foreign currency derivatives ................. Other current assets $10$ 7 Other current liabilities $11$6
Interest rate derivatives ...................... Other assets 202 148 Other long-term liabilities —3
Equity derivatives ........................... Other current assets —— Other current liabilities —56
Total ........................................ 212 155 11 65
Derivatives not designated as hedging instruments:
Foreign currency derivatives ................. Other current assets 23 Other current liabilities 12
Equity derivatives ........................... Other assets 42 Other long-term liabilities ——
Total ........................................ 6512
Total ................................... $ 218 $ 160 $12$67
The effects of the Company’s cash flow and net investment hedging instruments on other comprehensive income (OCI) and the
Consolidated Statements of Operations are summarized as follows (in millions):
GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR
THE YEARS ENDED (EFFECTIVE PORTION)
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR
THE YEARS ENDED (EFFECTIVE PORTION)
July 25,
2015
July 26,
2014
July 27,
2013
Line Item in Statements of
Operations
July 25,
2015
July 26,
2014
July 27,
2013
Derivatives designated as cash flow
hedging instruments:
Foreign currency derivatives ..... $ (159) $ 48 $ 73 Operating expenses ................ $ (121) $55$10
Cost of sales—service ............. (33) 13 2
Total .......................... $ (159) $ 48 $ 73 Total ......................... $ (154) $68$12
Derivatives designated as net
investment hedging instruments:
Foreign currency derivatives ..... $42$ (15) $ (1) Other income (loss), net ........... $—$—$—
As of July 25, 2015, the Company estimates that approximately $5 million of net derivative losses related to its cash flow hedges
included in accumulated other comprehensive income (AOCI) will be reclassified into earnings within the next 12 months when
the underlying hedged item impacts earnings.
The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the
underlying hedged items is summarized as follows (in millions):
GAINS (LOSSES) ON
DERIVATIVE INSTRUMENTS
FOR THE YEARS ENDED
GAINS (LOSSES) RELATED
TO HEDGED ITEMS FOR
THE YEARS ENDED
Derivatives Designated as Fair Value
Hedging Instruments
Line Item in Statements of
Operations
July 25,
2015
July 26,
2014
July 27,
2013
July 25,
2015
July 26,
2014
July 27,
2013
Equity derivatives .................. Other income (loss), net $56$ (72) $ (155) $ (56) $72$155
Interest rate derivatives ............. Interest expense 54 (2) (78) (57) —78
Total .......................... $ 110 $ (74) $ (233) $ (113) $72$233
102