Memorex 2010 Annual Report Download - page 80

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Our financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2010 were
as follows:
December 31,
2010
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
(In millions)
Derivative assets
Foreign currency option contracts . . . . . . . . . . $ 3.5 $— $ 3.5 $—
Foreign currency forward contracts . . . . . . . . . — — — —
Derivative liabilities
Foreign currency option contracts . . . . . . . . . . (2.3) — (2.3) —
Foreign currency forward contracts . . . . . . . . . — — — —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.2 $— $ 1.2 $—
There were no transfers into or out of Level 1 or Level 2 during the year ended December 31, 2010.
The notional amounts and fair values of our derivative instruments in the Consolidated Financial Statements were as
follows as of December 31, 2010:
Notional
Amount
Other
Current
Assets
Other
Current
Liabilities
Fair Value
(In millions)
Cash flow hedges designated as hedging instruments. . . . . . . . . . . . . . . . . . . $246.0 $3.5 $(2.3)
Other economic hedges not receiving hedge accounting . . . . . . . . . . . . . . . . . 47.1 — —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $293.1 $3.5 $(2.3)
On December 31, 2010 we entered into certain economic hedges which do not meet the definition for hedge
accounting treatment. In accordance with trade date accounting, these hedges and related exposures are recorded as of
December 31, 2010, but do not have a value until the subsequent day.
The derivative gains and losses in the Consolidated Statements of Operations for the year ended December 31,
2010 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
Consolidated Statement of
Operations in Other
Expense, Net
(In millions)
Cash flow hedges designated as hedging
instruments . . . . . . . . . . . . . . . . . . . . $0.5 $(0.1) $ —
Other economic hedges not receiving
hedge accounting . . . . . . . . . . . . . . . . — — (4.3)
Total . . . . . . . . . . . . . . . . . . . . . . . . . $0.5 $(0.1) $(4.3)
77
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)