Dow Chemical 2011 Annual Report Download - page 197

103
Effect of Derivative Instruments
for the year ended December 31, 2011
In millions
Derivatives designated as hedges:
Fair value:
Interest rates
Cash flow:
Commodities
Foreign currency
Net foreign investment:
Foreign currency
Total derivatives designated as hedges
Derivatives not designated as hedges:
Foreign currency (6)
Commodities
Total derivatives not designated as hedges
Total derivatives
Effect of Derivative Instruments
for the year ended December 31, 2010
In millions
Derivatives designated as hedges:
Fair value:
Interest rates
Cash flow:
Commodities
Foreign currency
Net foreign investment:
Foreign currency
Total derivatives designated as hedges
Derivatives not designated as hedges:
Foreign currency (6)
Commodities
Total derivatives not designated as hedges
Total derivatives
Change in
Unrealized
Gain (Loss)
in AOCI (1,2)
$ —
7
(10)
—
$ (3)
$ —
—
$ —
$ (3)
Change in
Unrealized
Gain (Loss) in
AOCI (1,2)
$ —
(10)
1
(16)
$ (25)
$ —
—
$ —
$ (25)
Income Statement
Classification
Interest expense (5)
Cost of sales
Cost of sales
n/a
Sundry income
(expense) – net
Cost of sales
Income Statement
Classification
Interest expense (5)
Cost of sales
Cost of sales
n/a
Sundry income
(expense) – net
Cost of sales
Gain (Loss)
Reclassified
from AOCI
to Income (3)
$ (1)
23
(17)
—
$ 5
$ —
—
$ —
$ 5
Gain (Loss)
Reclassified
from AOCI
to Income (3)
$ (1)
(14)
—
—
$ (15)
$ —
—
$ —
$ (15)
Additional
Gain (Loss)
Recognized in
Income (3,4)
$ (1)
—
—
—
$ (1)
$ 1
20
$ 21
$ 20
Additional
Gain (Loss)
Recognized in
Income (3,4)
$ (2)
—
—
—
$ (2)
$ 155
5
$ 160
$ 158
(1) Accumulated other comprehensive income (loss) (“AOCI”).
(2) Net unrealized gains (losses) from hedges related to interest rates and commodities are included in “Accumulated Derivative Loss – Net
hedging results” in the consolidated statements of equity; net unrealized gains (losses) from hedges related to foreign currency (net of
tax) are included in “Cumulative Translation Adjustments – Translation adjustments” in the consolidated statements of equity.
(3) Pretax amounts.
(4) Amounts impacting income not related to AOCI reclassification; also includes immaterial amounts of hedge ineffectiveness.
(5) Interest expense and amortization of debt discount.
(6) Foreign currency derivatives not designated as hedges are offset by foreign exchange gains/losses resulting from the underlying
exposures of foreign currency denominated assets and liabilities.