Mondelez 2013 Annual Report Download - page 95

Table of Contents
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 $2 million (net of taxes) for commodity cash flow hedges, unrealized losses of $6 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, 2013, 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:
Economic Hedges:
Pre-tax gains / (losses) recorded in net earnings from continuing operations for economic hedges which are not designated as
hedging instruments were:
Hedges of Net Investments in Foreign Operations:
After-tax gains / (losses) from continuing operations related to hedges of net investments in foreign operations in the form of euro
and pound sterling-denominated debt were:
88
• 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 32 years and 2 months; and
•
foreign currency transactions for periods not exceeding the next 12 months.
2013
2012
2011
(in millions)
Derivatives
$
–
$
(
2
)
$
(6
)
Borrowings –
2
6
2013
2012
2011
Location of
Gain / (Loss)
Recognized
in Earnings
(in millions)
Foreign exchange contracts:
Intercompany loans and forecasted interest
payments
$
18
$
24
$
34
Interest expense
Forecasted transactions
65
7
4
Cost of sales
Forecasted transactions
9
(17
)
3
Interest expense
Forecasted transactions
4
–
–
Selling, general
and administrative
expenses
Interest rate contracts
–
3
(3
)
Interest expense
Commodity contracts
65
100
135
Cost of sales
Total
$
161
$
117
$
173
2013
2012
2011
Location of
Gain / (Loss)
Recognized in AOCI
(in millions)
Euro notes
$
(50
)
$
(41
)
$
77
Currency
Translation
Pound sterling notes
(13
)
(29
)
3
Adjustment