Boeing 2013 Annual Report Download - page 111

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99
Derivative Instruments Not Receiving Hedge Accounting Treatment
We also hold certain derivative instruments, primarily foreign currency forward contracts, for risk
management purposes that are not receiving hedge accounting treatment.
Notional Amounts and Fair Values
The notional amounts and fair values of derivative instruments in the Consolidated Statements of Financial
Position as of December 31 were as follows:
Notional
amounts(1) Other assets
Accrued
liabilities
2013 2012 2013 2012 2013 2012
Derivatives designated as hedging instruments:
Foreign exchange contracts $2,524 $2,310 $122 $202 ($64) ($16)
Interest rate contracts 313 388 13 26
Commodity contracts 72 99 2 (39) (71)
Derivatives not receiving hedge accounting
treatment:
Foreign exchange contracts 259 412 12 3(35) (42)
Commodity contracts 915 (4) (8)
Total derivatives $3,177 $3,224 149 231 (142) (137)
Netting arrangements (63) (53) 63 53
Net recorded balance $86 $178 ($79) ($84)
(1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding.
Gains/(losses) associated with our cash flow and undesignated hedging transactions and their effect on
Other comprehensive income/(loss) and Net earnings were as follows:
Years ended December 31, 2013 2012
Effective portion recognized in Other comprehensive income/(loss), net of taxes:
Foreign exchange contracts ($76) $35
Commodity contracts 1(10)
Effective portion reclassified out of Accumulated other comprehensive loss into
earnings, net of taxes:
Foreign exchange contracts 37 35
Commodity contracts (20) (30)
Forward points recognized in Other income, net:
Foreign exchange contracts 34 22
Undesignated derivatives recognized in Other income, net:
Foreign exchange contracts 17 (16)
Based on our portfolio of cash flow hedges, we expect to reclassify losses of $6 (pre-tax) out of Accumulated
other comprehensive loss into earnings during the next 12 months. Ineffectiveness related to our hedges
recognized in Other income was insignificant for the years ended December 31, 2013 and 2012.