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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
118
Outstanding Positions
The notional amounts of our outstanding derivative positions were as follows as of December 31, 2015 and 2014 (in millions):
2015 2014
Currency Hedges:
Euro EUR 3,750 2,833
British Pound Sterling GBP 1,140 1,149
Canadian Dollar CAD 177 293
Indian Rupee INR — 85
Malaysian Ringgit MYR — 150
Mexican Peso MXN 3,863 152
Japanese Yen JPY 20,000 —
Interest Rate Hedges:
Fixed to Floating Interest Rate Swaps USD 5,799 5,799
Floating to Fixed Interest Rate Swaps USD 778 779
Interest Rate Basis Swaps USD — 1,500
Investment Market Price Hedges:
Marketable Securities EUR 496 —
As of December 31, 2015, we had no outstanding commodity hedge positions. The maximum term over which we are hedging
exposures to the variability of cash flow is 17 years.
Balance Sheet Recognition
The following table indicates the location on the consolidated balance sheets in which our derivative assets and liabilities have
been recognized, and the related fair values of those derivatives as of December 31, 2015 and 2014 (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 2015 2014 2015 2014
Derivatives designated as hedges:
Foreign exchange contracts Other current assets $ 408 $ 204 $ 408 $ 204
Foreign exchange contracts Other non-current assets 92 229 92 229
Interest rate contracts Other non-current assets 204 227 185 194
Derivatives not designated as hedges:
Foreign exchange contracts Other current assets 2 2 — 2
Investment market price contracts Other current assets 5———
Interest rate contracts Other non-current assets 57 59 53 57
Total Asset Derivatives $ 768 $ 721 $ 738 $ 686