Microsoft 2011 Annual Report Download - page 56

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56
(In millions)
Foreign
Exchange
Contracts
Equity
Contracts
Interest
Rate
Contracts
Credit
Contracts Commodity
Contracts
Total
Derivatives
June 30, 2010
Assets
Non-designated hedge derivatives:
Short-term investments $ 15 $ 134 $ 12 $ 7 $ 8 $ 176
Other current assets 34 0 0 0 0 34
Total $ 49 $ 134 $ 12 $ 7 $ 8 $ 210
Designated hedge derivatives:
Short-term investments $ 3 $ 0 $ 0 $ 0 $ 0 $ 3
Other current assets 563 0 0 0 0 563
Total $ 566 $ 0 $ 0 $ 0 $ 0 $ 566
Total assets $ 615 $ 134 $ 12 $ 7 $ 8 $ 776
Liabilities
Non-designated hedge derivatives:
Other current liabilities $ (60) $ (17) $ (33) $ (41) $ (5) $ (156)
Designated hedge derivatives:
Other current liabilities $ (9) $ 0 $ 0 $ 0 $ 0 $ (9)
Total liabilities $ (69) $ (17) $ (33) $ (41) $ (5) $ (165)
See also Note 4 – Investments and Note 6 – Fair Value Measurements.
Fair Value Hedge Gains (Losses)
We recognized in other income (expense) the following gains (losses) related to fair value hedges and their
related hedged items:
(In millions)
Y
ear Ended June 30, 2011 2010 2009
Foreign Exchange Contracts
Derivatives $ (92) $ (57) $ 121
Hedged items 85 60 (120)
Total $ (7) $ 3 $ 1
Equity Contracts
Derivatives $ 0 $ 0 $ 191
Hedged items 0 0 (211)
Total $ 0 $ 0 $ (20)
Cash Flow Hedge Gains (Losses)
We recognized the following gains (losses) related to foreign exchange contracts designated as cash flow hedges
(our only cash flow hedges during the periods reported):
(In millions)
Y
ear Ended June 30, 2011 2010 2009
Effective Portion
Gain (loss) recognized in OCI, net of tax effect of $(340), $188 and $472 $ (632) $ 349 $ 876
Gain (loss) reclassified from OCI into revenue $ (7) $ 495 $ 884
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Loss recognized in other income (expense) $ (276) $ (174) $ (314)