DELPHI 2015 Annual Report Download - page 131
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Table of Contents
109
As of December 31, 2015, the Company had the following outstanding notional amounts related to commodity and
foreign currency forward contracts that were entered into to hedge forecasted exposures:
Commodity
Quantity
Hedged
Unit of
Measure
Notional Amount
(Approximate
USD Equivalent)
(in thousands) (in millions)
Copper ..................................................................................................................... 71,108 pounds $ 150
Foreign Currency
Quantity
Hedged
Unit of
Measure
Notional Amount
(Approximate
USD Equivalent)
(in millions)
Mexican Peso........................................................................................................... 9,219 MXN $ 530
Polish Zloty ............................................................................................................. 261 PLN 65
New Turkish Lira..................................................................................................... 181 TRY 60
Chinese Yuan Renminbi.......................................................................................... 404 CNY 60
Hungarian Forint ..................................................................................................... 13,288 HUF 45
The Company had additional commodity and foreign currency forward contracts that individually amounted to less than
$10 million.
In conjunction with the acquisition of HellermannTyton, as more fully disclosed in Note 20. Acquisitions and
Divestitures, in August 2015 the Company entered into option contracts with notional amounts totaling £917 million to hedge
portions of the currency risk associated with the cash payment for the acquisition at a cost of $15 million. Pursuant to the
requirements of ASC 815, Derivatives and Hedging, the options did not qualify as hedges for accounting purposes, and
therefore, changes in the fair value of the options were recognized in other income (expense), net. In conjunction with the
closing of the acquisition, Delphi entered into offsetting option contracts. The options expire in the first quarter of 2016. During
the year ended December 31, 2015, the change in fair value resulted in a pre-tax loss of $15 million included within other
income (expense), net in the consolidated statement of operations.
Additionally, during the year ended December 31, 2014, Delphi entered into and settled treasury rate lock agreements
which were designated as cash flow hedges in anticipation of issuing the 2014 Senior Notes, as further discussed in Note 11.
Debt. The impacts of these agreements and the related amount of hedge ineffectiveness were not material.