Xerox 2013 Annual Report Download - page 115
Download and view the complete annual report
Please find page 115 of the 2013 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.-
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 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
 |
 |
Summary of Derivative Instruments Fair Value: The following table provides a summary of the fair value amounts
of our derivative instruments:
December 31,
Designation of Derivatives Balance Sheet Location 2013 2012
Derivatives Designated as Hedging Instruments
Foreign exchange contracts – forwards Other current assets $ 1$3
Other current liabilities (51)(51)
Net Designated Derivative Liability $(50) $ (48)
Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards Other current assets $ 5$8
Other current liabilities (19)(31)
Net Undesignated Derivative Liability $(14) $ (23)
Summary of Derivatives Total Derivative Assets $ 6$ 11
Total Derivative Liabilities (70)(82)
Net Derivative Liability $(64) $ (71)
Summary of Derivative Instruments Gains (Losses)
Derivative gains and (losses) affect the income statement based on whether such derivatives are designated as
hedges of underlying exposures. The following is a summary of derivative gains and (losses).
Designated Derivative Instruments Gains (Losses): The following tables provide a summary of gains (losses) on
derivative instruments:
Year Ended December 31,
Derivatives in Fair Value
Relationships
Location of Gain (Loss)
Recognized in Income
Derivative Gain (Loss)
Recognized in Income
Hedged Item Gain (Loss)
Recognized in Income
2013 2012 2011 2013 2012 2011
Interest rate contracts Interest expense $ — $ — $ 15 $ — $ — $ (15)
Year Ended December 31,
Derivatives in Cash
Flow
Hedging Relationships
Derivative Gain (Loss) Recognized in OCI
(Effective Portion)
Location of Derivative
Gain (Loss)
Reclassified
from AOCI into Income
(Effective Portion)
Gain (Loss) Reclassified from AOCI to
Income (Effective Portion)
2013 2012 2011 2013 2012 2011
Foreign exchange
contracts – forwards $ (126) $ (50) $ 30 Cost of sales $ (123) $ 37 $ 14
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) were included in the assessment of hedge
effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not
expected to occur.
As of December 31, 2013, net after-tax losses of $37 were recorded in accumulated other comprehensive loss
associated with our cash flow hedging activity. The entire balance is expected to be reclassified into net income
within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions.
Non-Designated Derivative Instruments (Losses) Gains: Non-designated derivative instruments are primarily
instruments used to hedge foreign currency-denominated assets and liabilities. They are not designated as hedges
since there is a natural offset for the re-measurement of the underlying foreign currency-denominated asset or
liability.
Xerox 2013 Annual Report 98