Boeing 2015 Annual Report Download - page 117

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101
accounting purposes. The quantities of aluminum in these agreements offset and are priced at prevailing
market prices. We also hold certain foreign currency forward contracts which do not qualify for 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
2015 2014 2015 2014 2015 2014
Derivatives designated as hedging instruments:
Foreign exchange contracts $2,727 $2,586 $23 $9 ($304) ($204)
Interest rate contracts 125 125 910
Commodity contracts 40 31 21(13) (24)
Derivatives not receiving hedge accounting
treatment:
Foreign exchange contracts 436 319 421 (11) (5)
Commodity contracts 725 3
Total derivatives $4,053 $3,064 38 41 (328) (233)
Netting arrangements (23) (16) 23 16
Net recorded balance $15 $25 ($305) ($217)
(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, 2015 2014
Effective portion recognized in Other comprehensive income/(loss), net of taxes:
Foreign exchange contracts ($136) ($135)
Commodity contracts (4) (2)
Effective portion reclassified out of Accumulated other comprehensive loss into
earnings, net of taxes:
Foreign exchange contracts (67) 6
Commodity contracts (12) (13)
Forward points recognized in Other income, net:
Foreign exchange contracts 12 28
Undesignated derivatives recognized in Other income, net:
Foreign exchange contracts (1) (7)
Based on our portfolio of cash flow hedges, we expect to reclassify losses of $156 (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, 2015 and
2014.
We have derivative instruments with credit-risk-related contingent features. For foreign exchange contracts
with original maturities of at least five years, our derivative counterparties could require settlement if we
default on our five-year credit facility. For certain commodity contracts, our counterparties could require