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2014
Fair Value of
Derivatives Designated
as Hedge Instruments
Fair Value of
Derivatives Not Designated
as Hedge Instruments Total
Fair Value
Derivative assets (1):
Foreign exchange contracts $ 1,332 $ 222 $ 1,554
Interest rate contracts $ 81 $ 0 $ 81
Derivative liabilities (2):
Foreign exchange contracts $ 41 $ 40 $ 81
(1) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the
Consolidated Balance Sheets.
(2) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the
Consolidated Balance Sheets.
The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash
flow, net investment and fair value hedges on OCI and the Consolidated Statements of Operations for 2015, 2014 and 2013 (in millions):
2015 2014 2013
Gains/(Losses) recognized in OCI – effective portion:
Cash flow hedges:
Foreign exchange contracts $ 3,592 $ 1,750 $ 891
Interest rate contracts (111) (15) 12
Total $ 3,481 $ 1,735 $ 903
Net investment hedges:
Foreign exchange contracts $ 167 $ 53 $ 143
Foreign currency debt (71) 0 0
Total $ 96 $ 53 $ 143
Gains/(Losses) reclassified from AOCI into net income – effective portion:
Cash flow hedges:
Foreign exchange contracts $ 4,092 $ (154) $ 676
Interest rate contracts (17) (16) (6)
Total $ 4,075 $ (170) $ 670
Gains/(Losses) on derivative instruments:
Fair value hedges:
Interest rate contracts $ 337 $ 39 $ 0
Gains/(Losses) related to hedged items:
Fair value hedges:
Interest rate contracts $ (337) $ (39) $ 0
The following table shows the notional amounts of the Company’s outstanding derivative instruments and credit risk amounts associated
with outstanding or unsettled derivative instruments as of September 26, 2015 and September 27, 2014 (in millions):
2015 2014
Notional
Amount Credit Risk
Amount Notional
Amount Credit Risk
Amount
Instruments designated as accounting hedges:
Foreign exchange contracts $ 70,054 $ 1,385 $ 42,945 $ 1,333
Interest rate contracts $ 18,750 $ 394 $ 12,000 $ 89
Instruments not designated as accounting hedges:
Foreign exchange contracts $ 49,190 $ 109 $ 38,510 $ 222
Apple Inc. | 2015 Form 10-K | 52