Tyson Foods 2014 Annual Report Download - page 76

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We have a foreign currency cash flow hedging program to hedge portions of forecasted transactions denominated in foreign currencies,
primarily with forward and option contracts, to protect against the reduction in value of forecasted foreign currency cash flows. Our
undesignated foreign currency positions generally would qualify for cash flow hedge accounting. However, to reduce earnings volatility, we
normally will not elect hedge accounting treatment when the position provides an offset to the underlying related transaction that impacts
current earnings.
We had the following aggregate outstanding notional values related to our undesignated positions:
The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Statements of Income:
68
in millions, except soy meal tons
Metric
September 27, 2014
September 28, 2013
Commodity:
Corn
Bushels
—
69
Soy Meal
Tons
195,800
204,600
Soy Oil
Pounds
3
11
Live Cattle
Pounds
22
60
Lean Hogs
Pounds
22
159
Foreign Currency
United States dollars
$
108
$
95
in millions
Consolidated
Statements of Income
Classification
Gain/(Loss)
Recognized
in Earnings
2014
2013
2012
Derivatives not designated as hedging instruments:
Commodity contracts
Sales
$
75
$
(10
)
$
(10
)
Commodity contracts
Cost of Sales
(136
)
(24
)
51
Foreign exchange contracts
Other Income/Expense
—
2
—
Total
$
(61
)
$
(32
)
$
41