Xerox 2010 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2010 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 112

  • 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
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Notes to the Consolidated
Financial Statements
Dollars in millions, except per-share data and unless otherwise indicated.
85Xerox 2010 Annual Report
Accumulated Other Comprehensive Loss (“AOCL”)
The following table provides a summary of the activity associated
with all of our designated cash flow hedges (interest rate and
foreign currency) reflected in AOCL for the three years ended
December 31, 2010:
2010 2009 2008
Beginning cash flow hedges
balance, net of tax $ 1 $ — $ —
Changes in fair value gain (loss) 31 (1) 1
Reclass to earnings (18) 2 (1)
Ending Cash Flow Hedges
Balance, Net of Tax $ 14 $ 1 $ —
Derivatives NOT Designated as Hedging Instruments Location of Derivative Gain (Loss) 2010 2009 2008
Foreign exchange contracts Other expense – Currency losses, net $113 $49 $(147)
Non-Designated Derivative Instruments Gains (Losses)
Non-designated derivative instruments are primarily instruments
used to hedge foreign currency-denominated assets and liabilities.
They are not designated as hedges because there is a natural offset for
the re-measurement of the underlying foreign currency-denominated
asset or liability.
The following table provides a summary of gains (losses) on
non-designated derivative instruments for the three years ended
December 31, 2010:
During the three years ended December 31, 2010, we recorded
total Currency losses, net of $11, $26 and $34, respectively. Currency
losses, net includes the mark-to-market of the derivatives not designated
as hedging instruments and the related cost of those derivatives, as
well as the re-measurement of foreign currency-denominated assets
and liabilities.