Proctor and Gamble 2009 Annual Report Download - page 63

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Notes to Consolidated Financial Statements The Procter & Gamble Company 61
Amounts in millions of dollars except per share amounts or as otherwise specified.
Disclosures about Derivative Instruments
The fair values and amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions as of, and for
the year ended, June30,2009 are as follows:
Derivatives in Cash Flow
Hedging Relationships
Notional Amount
(Ending Balance) Fair Value Asset (Liability)
Amount of Gain or (Loss)
Recognized in OCI on
Derivative (Effective Portion)
Amount of Gain or (Loss)
Reclassified from
Accumulated OCI
into Income
(Effective Portion)(1)
June 30 June 30 Twelve Months Ended June 30
Interest rate contracts $4,000 $ (13) $ 18 $ (56)
Foreign currency contracts 690 (103)26 (66)
Commodity contracts 503 (73) (62) (170)
Total 5,193 (189) (18) (292)
Derivatives in Net Investment
Hedging Relationships
Notional Amount
(Ending Balance) Fair Value Asset (Liability)
Amount of Gain or (Loss)
Recognized in OCI on
Derivative (Effective Portion)
Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)(1)
June 30 June 30 Twelve Months Ended June 30
Net investment hedges $2,271 $(2) $(2) $(5)
Total 2,271 (2)(2)(5)
Derivatives Not Designated as
Hedging Instruments
Notional Amount
(Ending Balance) Fair Value Asset (Liability)
Amount of Gain or (Loss)
Recognized in Income on
Derivative(1)
June 30 Twelve Months Ended June 30
Foreign currency contracts $12,348 $261 $(1,047)
Commodity contracts — — (5)
Total 12,348 261 (1,052)
(1) The gain or loss reclassified from accumulated OCI into income is included in the consolidated statement of earnings as follows: interest rate contracts
in interest expense, foreign currency contracts in SG&A and interest expense, commodity contracts in cost of products sold and net investment hedges in
interest expense.
During the next 12 months, the amount of the June30,2009 OCI balance that will be reclassified to earnings is expected to be immaterial.
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
activity during the period.