LG Display (LPL)

Derivatives for cash flow hedges

During the years ended December 31, 2006, 2007 and 2008, 475, 279 and 185 foreign currency forward contracts were designated as cash flow hedges, respectively. As of October 1, 2008, the Company discontinued the use of hedge accounting for derivatives related to arrangements entered into after that date, as management stopped designating those derivatives as a hedging instrument. During the year ended December 31, 2008, derivative losses amounting to (Won)1,921 million were recognized in accumulated other comprehensive income, net of tax and since then, derivative losses amounting to (Won)1,517 were charged to statement of operations.

During the years ended December 31, 2006, 2007 and 2008, these cash flow hedges were fully effective and changes in the fair value of the derivatives of (Won)18,911 million, (Won)(1,609) million and (Won)(2,534) million, were recorded in other comprehensive income. The deferred loss of (Won)1,921 million as of December 31, 2008 for derivatives designated as cash flow hedges were reclassified into earnings upon the completion of the related forecasted hedged transactions on January 28, 2009.