Proctor and Gamble 2016 Annual Report Download - page 71

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The Procter & Gamble Company 57
Amounts in millions of dollars except per share amounts or as otherwise specified.
Amount of Gain/(Loss)
Recognized in AOCI
on Derivatives (Effective Portion)
Years ended June 30 2016 2015
DERIVATIVES IN CASH FLOW HEDGING
RELATIONSHIPS
Interest rate contracts $(2)
$(1)
Foreign currency contracts —5
TOTAL $ (2) $4
DERIVATIVES IN NET INVESTMENT HEDGING
RELATIONSHIPS
Net investment hedges $(53)
$60
During the next 12 months, the amount of the June 30, 2016
AOCI balance that will be reclassified to earnings is expected
to be immaterial. The amounts of gains and losses included in
earnings from qualifying and non-qualifying financial
instruments used in hedging transactions for the years ended
June 30, 2016 and 2015 were as follows:
Amount of Gain/(Loss)
Reclassified from
AOCI into Earnings
Years ended June 30 2016 2015
DERIVATIVES IN CASH FLOW HEDGING
RELATIONSHIPS
Interest rate contracts $3
$6
Foreign currency contracts (106) 152
TOTAL $ (103) $ 158
Amount of Gain/(Loss)
Recognized in Earnings
Years ended June 30 2016 2015
DERIVATIVES IN FAIR VALUE HEDGING
RELATIONSHIPS
Interest rate contracts $ 212 $(9)
Debt (212) 9
TOTAL $ — $—
DERIVATIVES IN NET INVESTMENT HEDGING
RELATIONSHIPS
Net investment hedges $(2)
$(1)
DERIVATIVES NOT DESIGNATED AS HEDGING
INSTRUMENTS
Foreign currency contracts
(1)
$(120)
$(987)
(1)
The gain or loss on non-qualifying foreign currency contracts
substantially offsets the foreign currency mark-to-market impact
of the related exposure.
NOTE 10
SHORT-TERM AND LONG-TERM DEBT
Years ended June 30 2016 2015
DEBT DUE WITHIN ONE YEAR
Current portion of long-term debt $ 2,760 $ 2,772
Commercial paper 8,690 8,807
Other 203 439
TOTAL $ 11,653 $ 12,018
Short-term weighted average
interest rates
(1)
0.2% 0.3%
(1)
Short-term weighted average interest rates include the effects of
interest rate swaps discussed in Note 9.
Years ended June 30 2016 2015
LONG-TERM DEBT
1.45% USD note due August 2016 $ 1,000 $ 1,000
0.75% USD note due November 2016 500 500
Floating rate USD note due
November 2016 500 500
5.13% EUR note due October 2017 1,221 1,231
1.60% USD note due November 2018 1,000 1,000
4.70% USD note due February 2019 1,250 1,250
1.90% USD note due November 2019 550 550
0.28% JPY note due May 2020 973 818
4.13% EUR note due December 2020 666 671
9.36% ESOP debentures due
2016-2021
(1)
498 572
1.85% USD note due February 2021 600 —
2.00% EUR note due November 2021 833 839
2.30% USD note due February 2022 1,000 1,000
2.00% EUR note due August 2022 1,110 1,119
3.10% USD note due August 2023 1,000 1,000
1.13% EUR note due November 2023 1,388 —
2.70% USD note due February 2026 600 —
4.88% EUR note due May 2027 1,110 1,119
6.25% GBP note due January 2030 670 786
5.50% USD note due February 2034 500 500
5.80% USD note due August 2034 600 600
5.55% USD note due March 2037 1,400 1,400
Capital lease obligations 45 52
All other long-term debt 2,691 4,592
Current portion of long-term debt (2,760) (2,772)
TOTAL $18,945 $18,327
Long-term weighted average interest
rates
(2)
3.1% 3.2%
(1)
Debt issued by the ESOP is guaranteed by the Company and is
recorded as debt of the Company, as discussed in Note 8.
(2)
Long-term weighted average interest rates include the effects of
interest rate swaps discussed in Note 9.
Long-term debt maturities during the next five fiscal years are as
follows:
Years ending June 30 2017 2018 2019 2020 2021
Debt maturities $2,760 $1,323 $2,357 $2,099 $1,387
The Procter & Gamble Company fully and unconditionally
guarantees the registered debt and securities issued by its 100%
owned finance subsidiaries.