First Data 2012 Annual Report Download - page 77

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FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Fair Value of Derivative Instruments
Fair Value of Derivative Instruments in the Consolidated Balance Sheets
(a) Derivative assets are included in the “Other current assets” and “Other long-term assets” lines of the Consolidated Balance
Sheets.
(b) Derivative liabilities are included in the “Other current liabilities” and “Other long-term liabilities” lines of the Consolidated
Balance Sheets.
(c) The Company’ s policy is to present all derivative balances on a gross basis, without regard to counterparty master netting
agreements or similar arrangements.
The Effect of Derivative Instruments on the Consolidated Statements of Operations
77
As of December 31, 2012
(in millions) Assets (a)(c) Liabilities (b)(c)
Derivatives designated as hedging instruments
Foreign exchange contrac
t
$
—
$ (32.8)
Derivatives not designated as hedging instruments
Interest rate contracts 90.8 (137.7)
Foreign exchange contracts 10.1 (1.6)
Total derivatives not designated as hedging instruments 100.9 (139.3)
Total derivatives
$100.9
$(172.1)
As of December 31, 2011
(in millions) Assets (a)(c) Liabilities (b)(c)
Derivatives designated as hedging instruments
Interest rate contrac
t
$
—
$ (12.8)
Foreign exchange contract
—
(27.1)
Total derivatives designated as hedging instruments
—
(39.9)
Derivatives not designated as hedging instruments
Interest rate contracts $65.4 $(143.9)
Foreign exchange contracts 10.9 (0.7)
Forward-starting interest rate contracts
—
(11.9)
Total derivatives not designated as hedging instruments 76.3 (156.5)
Total derivatives
$76.3
$(196.4)
Year ended December 31,
2012 2011 2010
(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)
—
Amount of gain or (loss) reclassified
from accumulated OCI into income (a) (114.9)
—
(93.0)
—
(145.7)
—
Amount of gain or (loss) recognized in income
(ineffective portion) (b)
—
—
(2.3)
—
(6.3)
—
Derivatives in net investment hedging
relationships:
Amount of gain or (loss) recognized in
OCI (effective portion) $
—
(9.2) $
—
(9.4) $
—
(14.8)
Amount of gain or (loss) recognized in income
(ineffective portion) (b)
—
—
—
—
—
0.5
Derivatives not designated as hedging instruments
Amount of gain or (loss) recognized in income (b) $(89.9) (1.5) $58.0 2.5 $ (61.6) 9.1