Mondelez 2012 Annual Report Download - page 79

Table of Contents
After-tax gains / (losses) recognized in other comprehensive earnings / (losses) from continuing operations were:
Pre-tax gains / (losses) on ineffectiveness recognized in net earnings from continuing operations were:
Pre-tax gains / (losses) on amounts excluded from effectiveness testing recognized in net earnings from continuing operations
were:
In 2012, we recognized a loss of $556 million in interest and other expenses, net related to certain forward-starting interest rate
swaps for which the planned timing of the related forecasted debt was changed in connection with our Spin-Off plans and related
debt capitalization plans. In 2011, we recognized a loss of $157 million related to several interest rate swaps that settled in
November 2011. We recognized the loss in earnings as the timing of the related forecasted debt changed.
We record pre-
tax (i) gains or losses reclassified from accumulated other comprehensive earnings / (losses) into earnings, (ii) gains
or losses on ineffectiveness, and (iii) gains or losses on amounts excluded from effectiveness testing in:
We expect to transfer unrealized losses of $28 million (net of taxes) for commodity cash flow hedges, unrealized losses of $9
million (net of taxes) for foreign currency cash flow hedges and unrealized losses of $1 million (net of taxes) for interest rate cash
flow hedges to earnings during the next 12 months.
As of December 31, 2012, we hedged transactions forecasted to impact cash flows over the following periods:
Fair Value Hedges:
Pre-tax gains / (losses) from continuing operations due to changes in fair value of our interest rate swaps and related hedged long-
term debt were recorded in interest and other expense, net:
76
2012
2011
2010
(in millions)
Foreign exchange contracts – intercompany loans
$
–
$
1
$
2
Foreign exchange contracts – forecasted transactions
(16
)
12
19
Commodity contracts
(24
)
(22
)
37
Interest rate contracts
(35
)
(435
)
(90
)
Total
$
(75
)
$
(444
)
$
(32
)
2012
2011
2010
(in millions)
Commodity contracts
$
(3
)
$
(4
)
$
–
Interest rate contracts
(23
)
(2
)
–
Total
$
(26
)
$
(6
)
$
–
2012
2011
2010
(in millions)
Commodity contracts
$
–
$
(
17
)
$
–
Interest rate contracts
(556
)
(156
)
–
Total
$
(556
)
$
(173
)
$
–
• cost of sales for commodity contracts;
• cost of sales for foreign exchange contracts related to forecasted transactions; and
• interest and other expense, net for interest rate contracts and foreign exchange contracts related to intercompany loans.
• commodity transactions for periods not exceeding the next 12 months;
• interest rate transactions for periods not exceeding the next 34 years and 2 months; and
• foreign currency transactions for periods not exceeding the next 11 months.
2012
2011
2010
(in millions)
Derivatives
$
(2
)
$
(6
)
$
1
Borrowings
2
6
(1
)