Crucial 2012 Annual Report Download - page 255

10
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
(5) Financial Liabilities Reported at Fair Value through Profit or Loss - Current
Financial liabilities reported at fair value with changes in fair value recorded through profit or loss as of December
31, 2010 and 2011, consisted of the following:
December 31,
2010 2011
Financial liabilities
Interest rate swaps $ 223,302 27,054
(a) The Company entered into several interest rate swaps agreements (IRS) with banks to manage the risk from
fluctuations of interest rates for long-term loans.
(b) As of December 31, 2010 and 2011, derivative financial instruments that did not qualify for hedge accounting
were accounted for as financial liabilities reported at fair value through profit or loss, details of which were
as follows:
(i) Interest rate swaps:
December 31, 2010
Notional amount
(in thousands) Maturity Date Range of Interest Rates Paid Range of Interest Rates Received
NTD 19,500,000 2012.2.21 2.18%~2.432% NTD 90-day commercial paper
in secondary market average rate
December 31, 2011
Notional amount
(in thousands) Maturity Date Range of Interest Rates Paid Range of Interest Rates Received
NTD 7,500,000 2012.2.21 2.24%~2.432% NTD 90-day commercial paper
in secondary market average rate
(c) For the years ended December 31, 2009, 2010 and 2011, the Company recognized net gain (loss) on valuation
of financial instruments as follows:
For the years ended December31,
2009 2010 2011
Realized Unrealized Realized Unrealized Realized Unrealized
Foreign exchange forward contracts $ (37,243) — — — — —
Foreign exchange swaps (42,848) — 2,713 — — —
Interest rate swaps (414,123) 184,446 (348,610) 257,171 (117,533) 111,558
$ (494,214) 184,446 (345,897) 257,171 (117,533) 111,558