Memorex 2011 Annual Report Download - page 87

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The notional amounts and fair values of our derivative instruments in the Consolidated Financial Statements were as
follows as of December 31, 2011:
Fair Value
Notional
Amount
Other
Current
Assets
Other
Current
Liabilities
(In millions)
Cash flow hedges designated as hedging instruments .................... $208.2 $3.4 $(1.4)
Other economic hedges not receiving hedge accounting .................. 32.9 — —
Total ...................................................... $241.1 $3.4 $(1.4)
On December 31, 2011 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, 2011, 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, 2011
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 .......................... $1.9 $0.8 $ —
Other economic hedges not receiving
hedge accounting ...................... — — (1.7)
Total ............................... $1.9 $0.8 $(1.7)
Note 13 — Shareholders’ Equity
Shareholder Rights Plan
In 2006, we adopted a shareholder rights plan under which we have issued one preferred share purchase right (Right)
for each share of our common stock. If it becomes exercisable, each Right will entitle its holder to purchase one
one-hundredth of a share of Series A Junior Participating Preferred Stock at an exercise price of $160, subject to adjustment.
The Rights are exercisable only if a person or group acquires beneficial ownership of 15 percent or more of our outstanding
common stock, or after the first public announcement relating to a tender offer or exchange offer that would result in a person
or group beneficially owning 15 percent or more of our outstanding shares of common stock subject to certain exceptions. The
Rights expire on July 1, 2016 and may be redeemed earlier by the Board of Directors for $0.01 per Right.
The shareholder rights plan was amended effective July 30, 2007 to change the definition of acquiring person to exclude
TDK Corporation and its affiliates at any time during the period (TDK Standstill Period) beginning at the time, if any, that TDK and
its affiliates own 15 percent or more of the outstanding shares of common stock and ending at the time, if any, that TDK and its
affiliates cease to own at least 75 percent of the shares issued related to the acquisition of the TDK Recording Media business or
cease to be holders of record of at least 10 percent of the common stock as a result of Imation issuing additional shares.
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