Estee Lauder 2014 Annual Report Download - page 92

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The fair values of the Company’s derivative financial instruments included in the consolidated balance sheets are
presented as follows:
Asset Derivatives Liability Derivatives
Balance Sheet Location Fair Value(1) Balance Sheet Location Fair Value(1)
June 30 June 30
2014 2013 2014 2013
(In millions)
Derivatives Designated as
Hedging Instruments
:
Prepaid expenses and
Foreign currency forward contracts
other current assets $3.4 $20.8
Other accrued liabilities
$18.2 $6.4
Derivatives Not Designated as
Hedging Instruments:
Prepaid expenses and
Foreign currency forward contracts other current assets 0.8 0.9 Other accrued liabilities 0.9 2.7
Total Derivatives $4.2 $21.7 $19.1 $9.1
20142014
$3.4$3.4
0.80.8
$4.2$4.2
20142014
$18.2$18.2
0.90.9
$19.1$19.1
(1) See Note 11— Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.
The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging
instruments are presented as follows:
Amount of Gain or (Loss)
Recognized in OCI Location of Gain or (Loss) Amount of Gain or (Loss)
on Derivatives
Reclassified from AOCI into
Reclassified from AOCI into
(Effective Portion)
Earnings (Effective Portion)
Earnings (Effective Portion)(1)
June 30 June 30
2014 2013 2014 2013
(In millions)
Derivatives in Cash Flow
Hedging Relationships:
Foreign currency forward contracts
$(22.2) $10.3 Cost of sales $4.5 $ (1.8)
Selling, general and administrative
2.7 10.6
Total derivatives $(22.2) $10.3 $7.2 $ 8.8
20142014
$(22.2)$(22.2)
$(22.2)$(22.2)
20142014
$4.5$4.5
2.72.7
$7.2$7.2
(1) The amount of gain recognized in earnings related to the amount excluded from effectiveness testing was $0.4 million and $1.8 million for fiscal 2014 and 2013,
respectively. The loss recognized in earnings related to the ineffective portion of the hedging relationships was $0.5 million and $0.2 million for fiscal 2014 and
2013, respectively.
The amounts of the gains and losses related to the Company’s derivative financial instruments not designated as hedging
instruments are presented as follows:
Location of Gain or (Loss) Amount of Gain or (Loss)
Recognized in Earnings on Derivatives Recognized in Earnings on Derivatives
June 30
2014 2013
(In millions)
Derivatives Not Designated as
Hedging Instruments:
Foreign currency forward contracts Selling, general and administrative $1.9 $(2.1)
20142014
$1.9$1.9
90 THE EST{E LAUDER COMPANIES INC.