Coca Cola 2010 Annual Report Download - page 114

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The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow
hedges had on AOCI and earnings during the year ended December 31, 2010 and 2009 (in millions):
Gain (Loss)
Gain (Loss) Recognized in Income
Gain (Loss) Reclassified from (Ineffective Portion and
Recognized Location of Gain (Loss) AOCI into Income Amount Excluded from
in OCI Recognized in Income1(Effective Portion) Effectiveness Testing)
2010
Foreign currency contracts $ (307) Net operating revenues $ (2) $ (2)
Interest rate locks — Interest expense (15) —
Commodity futures 1 Cost of goods sold — —
Total $ (306) $ (17) $ (2)
2009
Foreign currency contracts $ (59) Net operating revenues $ (62) $ —2
Interest rate locks — Interest expense (10) 4
Commodity futures — Cost of goods sold (47) —
Total $ (59) $ (119) $ 4
1The Company records gains and losses reclassified from AOCI in income for the effective portion and ineffective portion, if any, to
the same line items in the consolidated statements of income.
2Includes a de minimis amount of ineffectiveness in the hedging relationship.
In 2008, the Company reclassified from AOCI into income pretax losses of $53 million. In addition, in 2008, we
reclassified $17 million of previously unrecognized gains on interest rate locks from AOCI to interest expense, which
was partially offset by $9 million of losses related to the portion of cash flow hedges that were deemed to be ineffective.
The reclassification was the result of a discontinued cash flow hedging relationship on interest rate locks, as it was no
longer probable that we would issue the long-term debt for which these hedges were designated.
As of December 31, 2010, the Company estimates that it will reclassify into earnings during the next 12 months losses
of approximately $187 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.
112