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Table of Contents E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
Effect of Derivative Instruments
Amount of Gain (Loss)
Recognized in OCI1
(Effective Portion)
Amount of Gain (Loss)
Recognized in Income 2
2011 2010 2009 2011 2010 2009 Income Statement Classification
Derivatives designated as hedging instruments:
Fair value hedges:
Interest rate swaps $ — $ — $ — $ 26 $ 40 $ (43) Interest expense3
Cash flow hedges:
Foreign currency contracts (6) 2 (7) (15) (1) (32) Net sales
Commodity contracts 23 (35) (45) (81) (89) (161) COGS4
Treasury rate contracts — (3) 4 — — —
17 (36) (48) (70) (50) (236)
Derivatives not designated as hedging instruments:
Foreign currency contracts — — — (133) 117 (485) Other income, net5
Commodity contracts — — — 3 (18) (6) COGS4
Interest rate swaps — — — (1) — — Interest expense
— — — (131) 99 (491)
Total derivatives $ 17 $ (36) $ (48) $ (201) $ 49 $ (727)
1. OCI is defined as other comprehensive income (loss).
2. For cash flow hedges, this represents the effective portion of the gain (loss) reclassified from accumulated OCI into income during the period. For the years ended December 31, 2011,
2010 and 2009, there was no material ineffectiveness with regard to the company's cash flow hedges.
3. Gain (loss) recognized in income of derivative is offset to $0 by gain (loss) recognized in income of the hedged item.
4. COGS is defined as costs of goods sold and other operating charges.
5. Gain (loss) recognized in other income, net, was partially offset by the related gain (loss) on the foreign currency-denominated monetary assets and liabilities of the company's
operations, which were $(30), $(130) and $280 for 2011, 2010 and 2009, respectively.
F-39