Lexmark 2014 Annual Report Download - page 118

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Fair Value Hedges
Net outstanding notional amount as of December 31, 2014 and 2013 of derivative activity for the Company’s forward exchange
contracts is as follows. This activity was driven by fair value hedges of recognized assets and liabilities primarily denominated in the
currencies below:
Long (Short) Positions by Currency (in USD)
December 31,
2014
EUR/USD $133.4
GBP/USD 66.0
EUR/GBP (34.4)
Other, net (17.9)
Total $147.1
Long (Short) Positions by Currency (in USD)
December 31,
2013
CAD/USD $ 18.5
MXN/USD 17.1
CNY/USD (15.2)
Other, net 0.6
Total $ 21.0
As of December 31, 2014 and 2013, the Company had the following net derivative assets (liabilities) recorded at fair value in Prepaid
expenses and other current assets (Accrued liabilities) on the Consolidated Statements of Financial Position for its fair value hedges:
Net Asset Position Net (Liability) Position
Foreign Exchange Contracts 2014 2013 2014 2013
Gross asset position $ – $ 0.6 $ 0.6 $ 0.2
Gross (liability) position – (0.5) (3.9) (0.4)
Net asset (liability) position (1) – 0.1 (3.3) (0.2)
Gross amounts not offset (2) – – – –
Net amounts $ – $ 0.1 $ (3.3) $ (0.2)
(1) Amounts presented in the Consolidated Statements of Financial Position
(2) Amounts not offset in the Consolidated Statements of Financial Position
The Company had the following (gains) and losses related to derivative instruments qualifying and designated as fair value hedging
instruments and related hedged items recorded on the Consolidated Statements of Earnings:
Recorded in Cost of revenue*
Recorded in Other expense (income),
net
Fair Value Hedging Relationships 2014 2013 2012 2014 2013 2012
Foreign Exchange Contracts $ 6.5 $ (2.8) $ 2.0 $ 0.3 $ 1.7 $ (3.6)
Underlying (3.6) 15.2 3.6 (0.5) (1.3) 1.5
Total $ 2.9 $ 12.4 $ 5.6 $ (0.2) $ 0.4 $ (2.1)
* Gains and losses recorded in Cost of revenue are included in Product on the Consolidated Statements of Earnings
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