Toro 2015 Annual Report Download - page 73

The following table presents the fair value of the company’s derivatives and consolidated balance sheet location.
Asset Derivatives Liability Derivatives
October 31, 2015 October 31, 2014 October 31, 2015 October 31, 2014
Balance Balance Balance Balance
Sheet Fair Sheet Fair Sheet Fair Sheet Fair
Location Value Location Value Location Value Location Value
Derivatives Designated as Hedging Instruments
Forward currency contracts Prepaid expenses $2,102 Prepaid expenses $4,626 Accrued liabilities $1,363 Accrued liabilities $ 9
Cross currency contracts Prepaid expenses –Prepaid expenses 831 Accrued liabilities 134 Accrued liabilities –
Derivatives Not Designated as Hedging
Instruments
Forward currency contracts Prepaid expenses $1,071 Prepaid expenses $1,404 Accrued liabilities $ 348 Accrued liabilities $ –
Cross currency contracts Prepaid expenses 2,136 Prepaid expenses – Accrued liabilities –Accrued liabilities 536
Total Derivatives $5,309 $6,861 $1,845 $545
The following table presents the impact of derivative instruments on the consolidated statements of earnings and the consolidated statements
of comprehensive income for the company’s derivatives designated as cash flow hedging instruments for the fiscal years ended October 31,
2015 and 2014, respectively.
Gain (Loss) Recognized
Gain (Loss) Location of Gain (Loss) Recognized in in Income on Derivatives
Recognized in OCI on Location of Gain (Loss) Reclassified Gain (Loss) Reclassified Income on Derivatives (Ineffective (Ineffective Portion and
Derivatives, net of tax from AOCL into Income from AOCL into Income Portion and excluded from Excluded from
(Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing)
October 31, October 31, October 31, October 31, October 31, October 31,
Fiscal years ended 2015 2014 2015 2014 2015 2014
Forward currency contracts $ (745) $4,150 Net sales $13,067 $(1,128) Other income, net $747 $120
Forward currency contracts (1,687) (712) Cost of sales (2,806) 103
Cross currency contracts 200 (238) Other income, net (355) (537)
Total $(2,232) $3,200 Total $ 9,906 $(1,562)
As of October 31, 2015, the company anticipates to reclassify The company entered into an International Swap Dealers Asso-
approximately $652 of gains from AOCL to earnings during the ciation (‘‘ISDA’’) Master Agreement with each counterparty that
next twelve months. permits the net settlement of amounts owed under their respective
The following table presents the impact of derivative instruments contracts. The ISDA Master Agreement is an industry standardized
on the consolidated statements of earnings for the company’s contract that governs all derivative contracts entered into between
derivatives not designated as hedging instruments. the company and the respective counterparty. Under these master
netting agreements, net settlement generally permits the company
Gain (Loss) Recognized or the counterparty to determine the net amount payable or receiv-
in Net Earnings able for contracts due on the same date or in the same currency
Fiscal Year Ended for similar types of derivative transactions. The company records
Location of Gain (Loss) October 31, October 31, the fair value of its derivative contracts at the net amount in its
Recognized in Net Earnings 2015 2014 consolidated balance sheets.
Forward currency contracts Other income, net $7,703 $3,555
Cross currency contracts Other income, net 1,400 951
Total $9,103 $4,506
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