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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
81
The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative
instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2014, 2013 and 2012 were as follows
(in thousands):
2014 2013 2012
Foreign
Exchange
Option
Contracts
Foreign
Exchange
Forward
Contracts
Foreign
Exchange
Option
Contracts
Foreign
Exchange
Forward
Contracts
Foreign
Exchange
Option
Contracts
Foreign
Exchange
Forward
Contracts
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in OCI, net of tax(1) ........ $ 41,993 $ — $ 34,677 $ — $ 23,922 $ —
Net gain (loss) reclassified from accumulated
OCI into income, net of tax(2)................................ $ 18,705 $ — $ 35,914 $ — $ 30,672 $ —
Net gain (loss) recognized in income(3) .................... $(14,962) $ — $ (21,098) $ — $ (29,554) $ —
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in income(4) .................... $ — $ 466 $ — $ 2,129 $ — $ 8,742
_________________________________________
(1) Net change in the fair value of the effective portion classified in OCI.
(2) Effective portion classified as revenue.
(3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net.
(4) Classified in interest and other income (expense), net.
Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2014,
2013 and 2012 were as follows (in thousands):
2014 2013 2012
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income.............................................. $ (21,559) $ (4,783) $ (5,899)
Net unrealized gain (loss) recognized in other income.......................................... 17,217 2,751 (4,720)
(4,342)(2,032)(10,619)
Gain (loss) on hedges of foreign currency assets and liabilities:
Net realized gain recognized in other income........................................................ 1,324 1,835 9,312
Net unrealized gain (loss) recognized in other income.......................................... (858) 294 (570)
466 2,129 8,742
Net gain (loss) recognized in interest and other income (expense), net................... $ (3,876) $ 97 $ (1,877)