Invacare 2014 Annual Report Download - page 109

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INVACARE CORPORATION AND SUBSIDIAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-39
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
2014 or 2013 related to these contracts and the associated short-term intercompany trading receivables and payables.
Foreign exchange forward contracts not qualifying or designated for hedge accounting treatment entered into in 2014 and
2013, respectively, and outstanding were as follows (in thousands USD):
December 31, 2014 December 31, 2013
Notional
Amount Gain
(Loss) Notional
Amount Gain
(Loss)
AUD / USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,300 $ 117 $ 225 $ (1)
CAD / USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,016 (6) — $ —
CNY / USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,200 (14) — —
EUR / USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,365 (1,585) 14,867 250
CHF / USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,645 35
GBP / USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,592 18 — —
NZD / USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500 12 3,824 (1)
CAD / AUD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 5,989 10
EUR / AUD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 2,039 80
EUR / DKK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 5,470 (3)
$ 79,973 $ (1,458) $ 34,059 $ 370
The fair values of the Company’s derivative instruments were as follows (in thousands):
December 31, 2014 December 31, 2013
Assets Liabilities Assets Liabilities
Derivatives designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts . . . . . . . . . . . . . $ 373 $ 921 $ 414 $ 1,195
Interest rate swap contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . ———12
Derivatives not designated as hedging instruments under ASC
815
Foreign currency forward exchange contracts . . . . . . . . . . . . . 147 1,605 375 5
Total derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 520 $ 2,526 $ 789 $ 1,212
The fair values of the Company’s foreign currency forward assets and liabilities are included in Other Current Assets and
Accrued Expenses, respectively in the Consolidated Balance Sheets.