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10-Q
XPO LOGISTICS, INC. filed this Form 10-Q on 11/05/2018
Entire Document
 

 
 
December 31, 2017
 
 
 
 
Derivative Assets
 
Derivative Liabilities
(In millions)
 
Notional Amount
 
Balance Sheet Caption
 
Fair Value
 
Balance Sheet Caption
 
Fair Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
 
 
 
Cross-currency swap agreements
 
$
1,303.7

 
Other long-term assets
 
$

 
Other long-term liabilities
 
$
(146.4
)
Derivatives not designated as hedges:
 
 
 
 
 
 
 
 
 
 
Foreign currency option and forward contracts
 
1,038.0

 
Other current assets
 
2.2

 
Other current liabilities
 
(15.5
)
Total
 
 
 
 
 
$
2.2

 
 
 
$
(161.9
)
The derivatives are classified as Level 2 within the fair value hierarchy. The derivatives are valued using inputs other than quoted prices, such as foreign exchange rates and yield curves.
The effect of derivative instruments designated as hedges and nonderivatives designated as hedges in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and September 30, 2017, are as follows:
 
 
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative
 
Amount of Gain Reclassified from AOCI into Net Income
 
Amount of Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
 
 
Three Months Ended September 30,
(In millions)
 
2018
 
2017
 
2018
 
2018
Derivatives designated as cash flow hedges:
 
 
 
 
 
 
 
 
Cross-currency swap agreements
 
$
0.5

 
$

 
$
1.0

 
$
0.2

Interest rate swaps
 
0.3

 
0.7

 

 

Derivatives designated as net investment hedges:
 
 
 
 
 
 
 
 
Cross-currency swap agreements
 
5.0

 
(50.4
)
 

 
2.4

Nonderivatives designated as hedges:
 
 
 
 
 
 
 
 
Foreign currency denominated notes
 

 
1.3

 

 

Total
 
$
5.8

 
$
(48.4
)
 
$
1.0

 
$
2.6

 
 
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative
 
Amount of Gain Reclassified from AOCI into Net Income
 
Amount of Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
 
 
Nine Months Ended September 30,
(In millions)
 
2018
 
2017
 
2018
 
2018
Derivatives designated as cash flow hedges:
 
 
 
 
 
 
 
 
Cross-currency swap agreements
 
$
6.5

 
$

 
$
14.0

 
$
0.5

Interest rate swaps
 

 
1.8

 

 

Derivatives designated as net investment hedges:
 
 
 
 
 
 
 
 
Cross-currency swap agreements
 
24.6

 
(112.7
)
 

 
1.7

Nonderivatives designated as hedges:
 
 
 
 
 
 
 
 
Foreign currency denominated notes
 

 
6.9

 

 

Total
 
$
31.1

 
$
(104.0
)
 
$
14.0

 
$
2.2

As of September 30, 2018, the amounts excluded from effectiveness testing for the cross-currency swap agreements were $2.5 million for derivatives designated as cash flow hedges and $34.9 million for derivatives designated as net investment hedges. There were no gains (losses) reclassified out of AOCI into Net income for the three and nine months ended September 30, 2017.


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