Delta Airlines 2015 Annual Report Download - page 78

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TableofContents
Designated Hedge Gains (Losses)
Gains(losses)relatedtoourdesignatedhedgecontractsduringtheyearsendedDecember31,2015,2014and2013areasfollows:
EffectivePortionReclassifiedfromAOCIto
Earnings
EffectivePortionRecognizedinOther
Comprehensive(Loss)Income
(inmillions) 2015 2014 2013
2015 2014 2013
Interestratecontracts $ — $ (31) $ —
$ — $ 38 $ 28
Foreigncurrencyexchangecontracts 198 158 135
(130) (34) 133
Totaldesignated $ 198 $ 127 $ 135
$ (130) $ 4 $ 161
AsofDecember31,2015, wehaverecorded$75millionofnetgainsoncashflowhedgecontractsinAOCI,whicharescheduledtosettleandbereclassified
intoearningswithinthenext12months.
Credit Risk
Tomanagecreditriskassociatedwithouraircraftfuelprice,interestrateandforeigncurrencyhedgingprograms,weevaluatecounterpartiesbasedonseveral
criteriaincludingtheircreditratingsandlimitourexposuretoanyonecounterparty.
Ourhedgecontractscontainmarginfundingrequirements.Themarginfundingrequirementsmaycauseustopostmargintocounterpartiesormaycause
counterpartiestopostmargintousasmarketpricesintheunderlyinghedgeditemschange.Duetothefairvaluepositionofourhedgecontracts,wepostedmargin
of$119millionand$925millionasofDecember31,2015and2014,respectively.
Ouraccountsreceivablearegeneratedlargelyfromthesaleofpassengerairlineticketsandcargotransportationservices,themajorityofwhichareprocessed
throughmajorcreditcardcompanies.WealsohavereceivablesfromthesaleofmileagecreditsunderourSkyMilesProgramtoparticipatingairlinesandnon-
airlinebusinessessuchascreditcardcompanies,hotelsandcarrentalagencies.Thecreditriskassociatedwithourreceivablesisminimal.
Self-Insurance Risk
Weself-insureaportionofourlossesfromclaimsrelatedtoworkers'compensation,environmentalissues,propertydamage,medicalinsuranceforemployees
andgeneralliability.Lossesareaccruedbasedonanestimateoftheaggregateliabilityforclaimsincurred,usingindependentactuarialreviewsbasedonstandard
industrypracticesandourhistoricalexperience.
72