P&G 2009 Annual Report – AnnualReports.com - Procter & Gamble
P&G 2009 Annual Report – AnnualReports.com - Procter & Gamble
P&G 2009 Annual Report – AnnualReports.com - Procter & Gamble
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Notes to Consolidated Financial Statements The <strong>Procter</strong> & <strong>Gamble</strong> Company 61<br />
Disclosures about Derivative Instruments<br />
The fair values and amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions as of, and for<br />
the year ended, June 30, <strong>2009</strong> are as follows:<br />
Derivatives in Cash Flow<br />
Hedging Relationships<br />
Notional Amount<br />
(Ending Balance) Fair Value Asset (Liability)<br />
Amount of Gain or (Loss)<br />
Recognized in OCI on<br />
Derivative (Effective Portion)<br />
Amount of Gain or (Loss)<br />
Reclassified from<br />
Accumulated OCI<br />
into In<strong>com</strong>e<br />
(Effective Portion) (1)<br />
June 30 June 30 Twelve Months Ended June 30<br />
Interest rate contracts $4,000 $ (13) $ 18 $ (56)<br />
Foreign currency contracts 690 (103) 26 (66)<br />
Commodity contracts 503 (73) (62) (170)<br />
Total 5,193 (189) (18) (292)<br />
Derivatives in Net Investment<br />
Hedging Relationships<br />
Notional Amount<br />
(Ending Balance) Fair Value Asset (Liability)<br />
Amount of Gain or (Loss)<br />
Recognized in OCI on<br />
Derivative (Effective Portion)<br />
Amount of Gain or (Loss)<br />
Recognized in In<strong>com</strong>e on<br />
Derivative (Ineffective Portion<br />
and Amount Excluded from<br />
Effectiveness Testing) (1)<br />
June 30 June 30 Twelve Months Ended June 30<br />
Net investment hedges $2,271 $(2) $(2) $(5)<br />
Total 2,271 (2) (2) (5)<br />
Derivatives Not Designated as<br />
Hedging Instruments<br />
Notional Amount<br />
(Ending Balance) Fair Value Asset (Liability)<br />
Amount of Gain or (Loss)<br />
Recognized in In<strong>com</strong>e on<br />
Derivative (1)<br />
June 30 Twelve Months Ended June 30<br />
Foreign currency contracts $12,348 $261 $(1,047)<br />
Commodity contracts — — (5)<br />
Total 12,348 261 (1,052)<br />
(1) The gain or loss reclassified from accumulated OCI into in<strong>com</strong>e is included in the consolidated statement of earnings as follows: interest rate contracts<br />
in interest expense, foreign currency contracts in SG&A and interest expense, <strong>com</strong>modity contracts in cost of products sold and net investment hedges in<br />
interest expense.<br />
During the next 12 months, the amount of the June 30, <strong>2009</strong> OCI balance that will be reclassified to earnings is expected to be immaterial.<br />
In addition, the total notional amount of contracts outstanding at the end of the period is indicative of the level of the Company’s derivative<br />
activity during the period.<br />
Amounts in millions of dollars except per share amounts or as otherwise specified.
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