Proctor and Gamble 2014 Annual Report Download - page 63

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The Procter & Gamble Company 61
Amounts in millions of dollars except per share amounts or as otherwise specified.
During fiscal 2013, we recorded impairments of certain goodwill and intangible assets. Also, during fiscal 2013, we applied
purchase accounting and re-measured assets and liabilities at fair value related to the purchase of the balance of a joint venture
in Iberia (see Note 2 for additional details on these items). Except for these items, there were no significant assets or liabilities
that were re-measured at fair value on a non-recurring basis during fiscal 2013 or 2014.
Disclosures about Derivative Instruments
The notional amounts and fair values of qualifying and non-
qualifying financial instruments used in hedging transactions
as of June 30, 2014 and 2013 are as follows:
Notional Amount Fair Value Asset/(Liability)
June 30 2014 2013 2014 2013
DERIVATIVES IN CASH FLOW HEDGING
RELATIONSHIPS
Foreign
currency
contracts $ 951 $ 951 $ 187 $ 168
DERIVATIVES IN FAIR VALUE HEDGING
RELATIONSHIPS
Interest rate
contracts $ 9,738 $ 9,117 $ 168 $ 132
DERIVATIVES IN NET INVESTMENT HEDGING
RELATIONSHIPS
Net
investment
hedges $ 831 $ 1,303 $ 48 $ 233
DERIVATIVES NOT DESIGNATED AS HEDGING
INSTRUMENTS
Foreign
currency
contracts $ 12,111 $ 7,080 $ (42) $ (71)
The total notional amount of contracts outstanding at the end
of the period is indicative of the level of the Company's
derivative activity during the period. The notional balance
of foreign currency contracts changes during the period
reflects changes in the level of intercompany financing
activity.
Amount of Gain/(Loss)
Recognized in
AOCI
on Derivatives
(Effective Portion)
June 30 2014 2013
DERIVATIVES IN CASH FLOW HEDGING
RELATIONSHIPS
Interest rate contracts $3
$7
Foreign currency contracts 14 14
TOTAL 17 21
DERIVATIVES IN NET INVESTMENT HEDGING
RELATIONSHIPS
Net investment hedges $ 30 $ 145
During the next 12 months, the amount of the June 30, 2014,
accumulated OCI balance that will be reclassified to
earnings is expected to be immaterial.
The amounts of gains and losses included in earnings from
qualifying and non-qualifying financial instruments used in
hedging transactions for the years ended June 30, 2014 and
2013 were as follows:
Amount of Gain/(Loss)
Reclassified from
AOCI into Earnings
Years ended June 30 2014 2013
DERIVATIVES IN CASH FLOW HEDGING
RELATIONSHIPS
Interest rate contracts $6
$6
Foreign currency contracts 38 215
TOTAL 44 221
Amount of Gain/(Loss)
Recognized in Earnings
Years ended June 30 2014 2013
DERIVATIVES IN FAIR VALUE HEDGING
RELATIONSHIPS
Interest rate contracts $ 36 $ (167)
Debt (37) 171
TOTAL (1) 4
DERIVATIVES IN NET INVESTMENT HEDGING
RELATIONSHIPS
Net investment hedges $—
$ (2)
DERIVATIVES NOT DESIGNATED AS HEDGING
INSTRUMENTS
Foreign currency contracts(1) $ 123 $ (34)
(1) The gain or loss on non-qualifying foreign currency contracts
substantially offsets the foreign currency mark-to-market
impact of the related exposure.