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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
108
Outstanding Positions
The notional amounts of our outstanding derivative positions were as follows as of December 31, 2013 and 2012 (in
millions):
2013 2012
Currency Hedges:
Euro EUR 2,637 1,783
British Pound Sterling GBP 1,097 797
Canadian Dollar CAD 218 341
United Arab Emirates Dirham AED — 551
Malaysian Ringgit MYR — 500
Mexican Peso MXN 583 —
Interest Rate Hedges:
Fixed to Floating Interest Rate Swaps USD 6,799 7,274
Floating to Fixed Interest Rate Swaps USD 780 781
Interest Rate Basis Swaps USD 2,500 2,500
As of December 31, 2013, we had no outstanding commodity hedge positions. The maximum term over which we are
hedging exposures to the variability of cash flow is 36 years.
Balance Sheet Recognition
The following table indicates the location on the balance sheet in which our derivative assets and liabilities have been
recognized, and the related fair values of those derivatives as of December 31, 2013 and 2012 (in millions). The table is segregated
between those derivative instruments that qualify and are designated as hedging instruments and those that are not, as well as by
type of contract and whether the derivative is in an asset or liability position.
We have master netting arrangements with substantially all of our counterparties giving us the right of offset for our derivative
positions. However, we have not elected to offset the fair value positions of our derivative contracts recorded on our consolidated
balance sheets. The columns labeled "Net Amounts if Right of Offset had been Applied" indicate the potential net fair value
positions by type of contract and location on the consolidated balance sheets had we elected to apply the right of offset.
Gross Amounts Presented in
Consolidated Balance Sheets Net Amounts if Right of
Offset had been Applied
Asset Derivatives Balance Sheet Location 2013 2012 2013 2012
Derivatives designated as hedges:
Foreign exchange contracts Other current assets $ 10 $ 27 $ 4 $ 27
Interest rate contracts Other current assets 7 1 7 1
Foreign exchange contracts Other non-current assets 59 14 59 12
Interest rate contracts Other non-current assets 204 420 110 406
Derivatives not designated as hedges:
Foreign exchange contracts Other current assets 7 3 5 3
Interest rate contracts Other non-current assets 60 101 57 91
Total Asset Derivatives $ 347 $ 566 $ 242 $ 540