Invacare 2013 Annual Report Download - page 110

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-36
The Company has historically not recognized any material amount of ineffectiveness related to forward contract cash flow
hedges because the Company generally limits its hedges to between 60% and 90% of total forecasted transactions for a given
entity’s exposure to currency rate changes and the transactions hedged are recurring in nature. Furthermore, the majority of the
hedged transactions are related to intercompany sales and purchases for which settlement occurs on a specific day each month.
Forward contracts with a total notional amount in USD of $182,213,000 and $176,784,000 matured during the twelve months
ended December 31, 2013 and 2012, respectively.
Foreign exchange forward contracts qualifying and designated for hedge accounting treatment were as follows (in thousands
USD):
December 31, 2013 December 31, 2012
Notional
Amount
Unrealized
Net Gain
(Loss) Notional
Amount
Unrealized
Net Gain
(Loss)
USD / CAD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 17,620 $ (6)
USD / CHF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486 4 — —
USD / CNY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,730 (66) — —
USD / EUR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,106 (168) 59,510 (797)
USD / GBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,686 (45) 2,519 (3)
USD / SEK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,485 58 — —
USD / MXP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,960 102 6,954 141
EUR / CAD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,710 (1) — —
EUR / CHF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,654 1 — —
EUR / DKK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,382 (5) — —
EUR / GBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,614 (501) 2,077 46
EUR / NOK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,135 66 — —
EUR / SEK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,432 75 — —
EUR / NZD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,959 (111) 5,749 105
GBP / CHF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837 (26) — —
GBP / SEK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,078 (101) 4,154 25
DKK / SEK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,337 (94) 6,397 (47)
NOK / SEK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,418 31 3,428 (4)
$ 135,009 $ (781) $ 108,408 $ (540)
Derivatives Not Qualifying or Designated for Hedge Accounting Treatment
The Company utilizes foreign currency forward contracts that are not designated as hedges in accordance with ASC
815. These contracts are entered into to eliminate the risk associated with the settlement of short-term intercompany trading
receivables and payables between Invacare Corporation and its foreign subsidiaries. The currency forward contracts are entered
into at the same time as the intercompany receivables or payables are created so that upon settlement, the gain/loss on the settlement
is offset by the gain/loss on the foreign currency forward contract. No material net gain or loss was realized by the Company in
2013 or 2012 related to these forward contracts and the associated short-term intercompany trading receivables and payables.