Xerox 2009 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2009 Xerox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

68 Xerox 2009 Annual Report
Notes to the Consolidated
Financial Statements
Dollars in millions, except per-share data and unless otherwise indicated.
Summary of Derivative Instruments Fair Values
The following table provides a summary of the fair value amounts of
derivative instruments at December 31, 2009 and 2008, respectively.
Fair Value
Designation of Derivatives Balance Sheet Location 2009 2008
Derivatives Designated as Hedging Instruments Other current assets:
Foreign exchange contracts – forwards $ 4 $ —
Other long-term assets:
Interest rate swaps 10 53
Total Assets $ 14 $ 53
Other current liabilities:
Interest rate swaps $ — $ 2
Foreign exchange contracts – forwards 3 1
Total $ 3 $ 3
Other long-term liabilities:
Interest rate swaps $ 9 $ —
Total Liabilities $ 12 $ 3
Derivatives NOT Designated as Hedging Instruments Other current assets:
Foreign exchange contracts – forwards $ 12 $ 39
Other current liabilities:
Foreign exchange contracts – forwards 12 131
Summary of Derivatives
Total Derivative Assets $ 26 $ 92
Total Derivative Liabilities 24 134
Total Net Derivative Asset (Liability) $ 2 $ (42)
Summary of Derivative Instruments Gains (Losses)
The following tables provide a summary of the gains and losses on
derivative instruments for the three years ended December 31, 2009:
Location of Gain Derivative Gain (Loss) Hedged Item Gain (Loss)
Derivatives in Fair Value (Loss) Recognized Recognized in Income Recognized in Income
Hedging Relationships in Income 2009 2008 2007 2009 2008 2007
Interest rate contracts Interest expense $(18) $206 $36 $18 $(206) $ (36)
Location of
Derivative Gain (Loss) Derivative Gain (Loss) Gain (Loss)
Recognized in OCI Reclassified from Reclassified from AOCI
Derivatives in Cash Flow (Effective Portion) AOCI into Income to Income (Effective Portion)
Hedging Relationships 2009 2008 2007 (Effective Portion) 2009 2008 2007
Interest rate contracts $ — $ (2) $ 9 Interest expense $ — $ — $ 10
Foreign exchange contracts –
forwards (1) 4 — Cost of sales 2 2 (1)
Total Cash Flow Hedges $ (1) $ 2 $ 9 $ 2 $ 2 $ 9
No amount of ineffectiveness was recorded in the Consolidated
Statements of Income for these designated cash flow hedges and
all components of each derivative’s gain or loss was included in
the assessment of hedge effectiveness.
Gain (Loss)
Reclassified from AOCI to
Income (Effective Portion)