Harman Kardon 2011 Annual Report Download - page 90

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Fair Value of Derivatives
The following tables provide a summary of the fair value amounts of our derivative instruments as of
June 30, 2011 and 2010:
Fair Value
Balance Sheet Location
June 30,
2011
June 30,
2010
Derivatives Designated as
Cash Flow Hedges, Gross:
Other assets:
Foreign exchange contracts .......................... Other current assets $ 95 $24,969
Other liabilities:
Foreign exchange contracts .......................... Accrued liabilities 25,335 3,429
Interest rate swap .................................. Accrued liabilities 625 709
Interest rate swap .................................. Other non-current liabilities 554 1,129
Total liabilities ................................ 26,514 5,267
Net (liability) asset for derivatives designated as hedging
instruments ..................................... (26,419) 19,702
Derivatives Designated as
Economic Hedges, Gross:
Other assets:
Foreign exchange contracts .......................... Other current assets 1,032 6,223
Other liabilities:
Foreign exchange contracts .......................... Accrued liabilities 10,716 325
Net (liability) asset for economic hedges: ............... (9,684) 5,898
Total net derivative (liability) asset .................... $(36,103) $25,600
Derivative Activity:
The following tables show derivative activity for derivatives designated as cash flow hedges for the years
ended June 30, 2011, 2010 and 2009:
Derivative
Location of
Derivative
Gain/(Loss)
Recognized in
Income
Gain/(Loss)
Reclassified
from AOCI into Income
(Effective Portion)
Gain/(Loss)
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Gain/(Loss)
from Amounts
Excluded from
Effectiveness Testing
Years Ended June 30,
2011 2010 2009 2011 2010 2009 2011 2010 2009
Foreign exchange contracts . . . Cost of sales $(34,063) $(2,028) $4,890 $ 0 $ 0 $ 0 $ 15 $ 19 $ 0
Foreign exchange contracts . . . SG&A 0 2,203 347 21 14 0 (330) (231) (71)
Foreign exchange contracts . . . Other expense 0 0 0 0 0 0 0 0 (1,160)
Interest rate swap ........... Rent expense (758) (827) (51) (9) (8) (6) 0 0 0
Total cash flow hedges ....... $(34,821) $ (652) $5,186 $12 $ 6 $(6) $(315) $(212) $(1,231)
Derivative
Gain/(Loss) Recognized in OCI
(Effective Portion)
Years Ended June 30,
2011 2010 2009
Foreign exchange contracts ........................ $(82,165) $27,967 $(5,355)
Interest rate swap ................................ (105) (983) (2,666)
Total cash flow hedges ........................... $(82,270) $26,984 $(8,021)
72