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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
119
Gross Amounts Presented in
Consolidated Balance Sheets
Net Amounts if Right of
Offset had been Applied
Liability Derivatives Balance Sheet Location 2015 2014 2015 2014
Derivatives Designated As Hedges:
Foreign exchange contracts Other non-current liabilities —34—34
Interest rate contracts Other non-current liabilities 19 35 — 2
Derivatives Not Designated As
Hedges:
Foreign exchange contracts Other current liabilities 12 — 10 —
Interest rate contracts Other current liabilities — 1 — 1
Investment market price contracts Other current liabilities 9 — 4 —
Interest rate contracts Other non-current liabilities 13795
Total Liability Derivatives $53$77$23$42
Income Statement and AOCI Recognition
The following table indicates the amount of gains and losses that have been recognized in AOCI within "unrealized gain (loss)
on cash flow hedges" for the years ended December 31, 2015 and 2014 for those derivatives designated as cash flow hedges (in
millions):
Derivative Instruments in Cash Flow Hedging Relationships
Amount of Gain (Loss) Recognized in AOCI on
Derivative (Effective Portion)
2015 2014
Interest rate contracts $(1) $ (5)
Foreign exchange contracts 275 358
Total $ 274 $ 353
As of December 31, 2015, $366 million of pre-tax gains related to cash flow hedges that are currently deferred in AOCI are
expected to be reclassified to income over the 12 month period ended December 31, 2016. The actual amounts that will be
reclassified to income over the next 12 months will vary from this amount as a result of changes in market conditions.
The amount of ineffectiveness recognized in income on derivative instruments designated in cash flow hedging relationships
was immaterial for the years ended December 31, 2015, 2014 and 2013.
The following table indicates the amount of gains and losses that have been recognized in AOCI within "foreign currency
translation gain (loss)" for the years ended December 31, 2015 and 2014 for those instruments designated as net investment hedges
(in millions):
Non-derivative Instruments in Net Investment Hedging Relationships
Amount of Gain (Loss) Recognized in AOCI on
Debt (Effective Portion)
2015 2014
Foreign denominated debt $(33)$ —
Total $(33)$ —
The amount of ineffectiveness recognized in income on non-derivative instruments designated in net investment hedging
relationships was immaterial for the years ended December 31, 2015, 2014 and 2013.