Invacare 2012 Annual Report Download - page 121

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Foreign exchange forward contracts qualifying and designated for hedge accounting treatment were as
follows (in thousands USD):
December 31, 2012 December 31, 2011
Notional
Amount
Unrealized
Net Gain
(Loss)
Notional
Amount
Unrealized
Net Gain
(Loss)
USD/AUD ..................... $ — $ — $ 3,324 $ 104
USD/CAD...................... 17,620 (6) 8,424 29
USD/CNY...................... — — 8,130 (16)
USD/EUR ...................... 59,510 (797) 42,267 701
USD/GBP ...................... 2,519 (3) 1,806 19
USD/NZD...................... — — 8,256 86
USD/SEK ...................... — — 4,520 19
USD/MXP ..................... 6,954 141 14,029 (146)
EUR/AUD ..................... — — 1,220 (48)
EUR/CHF ...................... — — 5,433 (22)
EUR/GBP ...................... 2,077 46 17,201 9
EUR/NZD...................... 5,749 105 7,009 505
GBP/CHF ...................... — — 929 (5)
GBP/SEK ...................... 4,154 25 1,690 12
CHF/SEK ...................... — — 271 (2)
DKK/SEK...................... 6,397 (47) — —
NOK/CHF...................... — — 436 (1)
NOK/SEK...................... 3,428 (4) — —
$ 108,408 $ (540) $ 124,945 $ 1,244
Derivatives Not Qualifying or Designated for Hedge Accounting Treatment
The company utilizes foreign currency forward contracts that are not designated as hedges in accordance
with ASC 815. These contracts are entered into to eliminate the risk associated with the settlement of short-term
intercompany trading receivables and payables between Invacare Corporation and its foreign subsidiaries. The
currency forward contracts are entered into at the same time as the intercompany receivables or payables are
created so that upon settlement, the gain/loss on the settlement is offset by the gain/loss on the foreign currency
forward contract. No material net gain or loss was realized by the company in 2012 or 2011 related to these
forward contracts and the associated short-term intercompany trading receivables and payables.
FS-41