Harley Davidson 2012 Annual Report Download - page 81

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81
The following tables summarize the fair value of the Company’s derivative financial instruments at December 31 (in
thousands):
2012 2011
Derivatives Designated As Hedging
Instruments Under ASC Topic 815 Notional
Value Asset
Fair Value(a) Liability
Fair Value(b) Notional
Value Asset
Fair Value(a) Liability
Fair Value(b)
Foreign currency contracts(c) $ 345,021 $ 169 $ 6,850 $ 306,450 $ 16,443 $ 1,852
Commodities contracts(c) 1,064 148 683 3,915 — 265
Interest rate swaps – unsecured
commercial paper(c) 35,800 — 373 102,100 — 3,020
Total $ 381,885 $ 317 $ 7,906 $ 412,465 $ 16,443 $ 5,137
2012 2011
Derivatives Not Designated As Hedging
Instruments Under ASC Topic 815 Notional
Value Asset
Fair Value(a) Liability
Fair Value(b) Notional
Value Asset
Fair Value(a) Liability
Fair Value(b)
Commodities contracts $ 16,237 $ — $ 14 $ — $ — $ —
$ 16,237 $ — $ 14 $ — $ — $ —
(a) Included in other current assets
(b) Included in accrued liabilities
(c) Derivative designated as a cash flow hedge
The following tables summarize the amount of gains and losses for the following years ended December 31 related to
derivative financial instruments designated as cash flow hedges (in thousands):
Amount of Gain/(Loss)
Recognized in OCI
Cash Flow Hedges 2012 2011 2010
Foreign currency contracts $ (344) $ (304) $ (6,896)
Commodities contracts (427)(558)(1,164)
Interest rate swaps – unsecured commercial paper (43)(662)(4,318)
Total $ (814) $ (1,524) $ (12,378)
Amount of Gain/(Loss)
Reclassified from AOCI into Income
Cash Flow Hedges 2012 2011 2010 Expected to be Reclassified
Over the Next Twelve Months
Foreign currency contracts(a) $ 18,586 $ (24,746) $ (312) $ (5,731)
Commodities contracts(a) (705)(539)(867)(9)
Interest rate swaps – unsecured commercial paper(b) (2,542)(5,103)(6,466)(373)
Total $ 15,339 $ (30,388) $ (7,645) $ (6,113)
(a) Gain/(loss) reclassified from accumulated other comprehensive income (AOCI) to income is included in cost of goods sold.
(b) Gain/(loss) reclassified from AOCI to income is included in financial services interest expense.
For the years ended December 31, 2012 and 2011, the cash flow hedges were highly effective and, as a result, the amount
of hedge ineffectiveness was not material. No amounts were excluded from effectiveness testing.