First Data 2011 Annual Report Download - page 87

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The Effect of Derivative Instruments on the Consolidated Statements of Operations
Year ended December 31,
2011 2010 2009
(in millions, pretax)
Interest
Rate
Contracts
Foreign
Exchange
Contracts
Interest
Rate
Contracts
Foreign
Exchange
Contracts
Interest
Rate
Contracts
Foreign
Exchange
Contracts
Derivatives in cash flow hedging
relationships:
Amount of gain or (loss) recognized in
OCI (effective portion) $ 61.3 — $ (26.2) — $ 41.1 —
Amount of gain or (loss) reclassified
from accumulated OCI into income (a) $ (93.0) — $ (145.7) — $ (131.4) —
Amount of gain or (loss) recognized in
income (ineffective portion) (b) $ (2.3) — $ (6.3) — $ (11.3) —
Derivatives in net investment hedging
relationships:
Amount of gain or (loss) recognized in
OCI (effective portion) — $ (9.4) — $ (14.8) — $ (21.9)
Amount of gain or (loss) recognized in
income (ineffective portion) (b) — — — $ 0.5 — $ 1.1
Derivatives not designated as hedging
instruments
Amount of gain or (loss) recognized in
income (b) $ 58.0 $ 2.5 $ (61.6) $ 9.1 $ (53.0) $ (4.2)
(a) Gain (loss) is recognized in the "Interest expense" line of the Consolidated Statements of Operations.
(b) Gain (loss) is recognized in the "Other income (expense)" line of the Consolidated Statements of Operations.
Accumulated Derivative Gains and Losses
The following table summarizes activity in other comprehensive income for the years ended December 31, 2011 and 2010
related to derivative instruments classified as cash flow hedges and a net investment hedge held by the Company:
Year ended December 31,
(in millions, after tax) 2011 2010
Accumulated loss included in other comprehensive income (loss) at beginning of the period $ (181.3) $ (242.3)
Less: Reclassifications into earnings from other comprehensive income (loss) 60.2 91.3
(121.1) (151.0)
Increase in fair value of derivatives that qualify for hedge accounting (a) 33.5 (30.3)
Accumulated loss included in other comprehensive income (loss) at end of the period $ (87.6)$ (181.3)
(a) Gains and losses are included in "Unrealized gains on hedging activities" and in "Foreign currency translation adjustment" on
the Consolidated Statements of Equity.
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