Mondelez 2014 Annual Report Download - page 84
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Table of Contents
Pre-tax gains / (losses) on ineffectiveness recognized in net earnings from continuing operations were:
Pre-tax gains / (losses) on amounts excluded from effectiveness testing recognized in net earnings from continuing operations
included a pre-tax loss of $556 million we recognized in 2012 within interest and other expense, net related to certain forward-
starting interest rate swaps for which the planned timing of the related forecasted debt was changed in connection with our Spin-
Off
plans and related debt capitalization plans.
We record pre-tax and after-tax (i) gains or losses reclassified from accumulated other comprehensive earnings / (losses) into
earnings, (ii) gains or losses on ineffectiveness and (iii) gains or losses on amounts excluded from effectiveness testing in:
Based on current market conditions, we would expect to transfer unrealized losses of $20 million (net of taxes) for commodity cash
flow hedges, unrealized gains of $53 million (net of taxes) for currency cash flow hedges and unrealized losses of $1 million (net of
taxes) for interest rate cash flow hedges to earnings during the next 12 months.
Hedge Coverage:
As of December 31, 2014, we hedged transactions forecasted to impact cash flows over the following periods:
Fair Value Hedges:
Pre-tax gains / (losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in
interest and other expense, net:
Fair value hedge ineffectiveness and amounts excluded from effectiveness testing were not material for all periods presented.
81
For the Years Ended December 31,
2014
2013
2012
(in millions)
Commodity contracts
$
(10
)
$
1
$
(3
)
Interest rate contracts
–
–
(
23
)
Total
$
(10
)
$
1
$
(26
)
• cost of sales for commodity contracts;
• cost of sales for currency exchange contracts related to forecasted transactions; and
• interest and other expense, net for interest rate contracts and currency exchange contracts related to intercompany
loans.
•
commodity transactions for periods not exceeding the next 15 months;
•
interest rate transactions for periods not exceeding the next 31 years and 2 months; and
•
currency exchange transactions for periods not exceeding the next 4 years and 10 months.
For the Years Ended December 31,
2014
2013
2012
(in millions)
Derivatives
$
13
$
–
$
(
2
)
Borrowings
(13
)
–
2