Memorex 2009 Annual Report Download - page 83

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As of December 31, 2009 and 2008, cash flow hedges ranged in duration from one to 12 months and had a total
notional amount of $48.0 million and $495.6 million, respectively. Hedge losses, of $3.8 million, $0.4 million and $2.1 million
were reclassified into the Consolidated Statement of Operations in 2009, 2008 and 2007, respectively. The amount of net
deferred gains on foreign currency cash flow hedges included in accumulated other comprehensive income (loss) in
shareholders’ equity as of December 31, 2009 was $0.5 million, pre-tax, which depending on market factors is expected to
reverse in the Consolidated Balance Sheet or be reclassified into operations in 2010.
As of December 31, 2009 and 2008, we had a notional amount of forward contracts of $88.8 million and $99.0 million,
respectively, to hedge our recorded balance sheet exposures.
Our financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2009 were
as follows:
December 31,
2009
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
(In millions)
Derivative assets . . . . . . . . . . . . . . . . . . . . . . . $ 1.0 $— $ 1.0 $—
Derivative liabilities . . . . . . . . . . . . . . . . . . . . . . (0.3) — (0.3) —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.7 $— $ 0.7 $—
The notional amounts and fair values of our derivative instruments in the Consolidated Financial Statements were as
follows as of December 31, 2009:
Notional
Amount
Other
Current
Assets
Other
Current
Liabilities
Fair Value
(In millions)
Cash flow hedges designated as hedging instruments. . . . . . . . . . . . . . . . . . . $ 48.0 $0.8 $ —
Other hedges not receiving hedge accounting . . . . . . . . . . . . . . . . . . . . . . . . 88.8 0.2 (0.3)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $136.8 $1.0 $(0.3)
The derivative gains and losses in the Consolidated Statement of Operations for the year ended December 31, 2009
were as follows:
Pretax Gain/(Loss)
Recognized in
Other
Comprehensive
Income on
Effective Portion
of Derivative
Pretax Gain/(loss) on
Effective Portion of
Derivative
Reclassification from
Accumulated Other
Comprehensive Income
to Cost of Goods
Sold, Net
Pretax Gain/(loss)
Recognized in the
Condensed Statement of
Operations in Other
Expense, Net
(In millions)
Cash flow hedges designated as hedging
instruments . . . . . . . . . . . . . . . . . . . . . $1.1 $(3.8) $ —
Other hedges not receiving hedge
accounting . . . . . . . . . . . . . . . . . . . . . . — — (24.1)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . $1.1 $(3.8) $(24.1)
76
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)