This excerpt taken from the MAR 10-Q filed Apr 24, 2009.
Derivatives not Designated as Hedging Instruments Under FAS No. 133
At the end of the 2009 first quarter, we had six outstanding interest rate swap agreements to manage interest rate risk associated with some of the residual interests we retain in conjunction with some of our timeshare note sales. Historically, we were required occasionally by purchasers and/or rating agencies to utilize interest rate swaps to protect the excess spread within our sold note pools. Due to market conditions, we were required to enter into swaps related to our retained interests for our 2009 first quarter note sale. The aggregate notional amount of the outstanding swaps at March 27, 2009, is $513 million and they expire through 2022.
During the 2009 first quarter and fiscal year 2008, we entered into forward foreign exchange contracts to manage the foreign currency exposure related to certain monetary assets. The aggregate dollar equivalent of the notional amount of the contracts was $248 million at the end of the 2009 first quarter. We anticipate entering into similar contracts when these contracts expire in the second quarter of 2009.
The following tables summarize the fair value of our derivative instruments, the effect of derivative instruments on our Condensed Consolidated Statements of Income and Comprehensive income, and the amounts reclassified from Other comprehensive income during the quarter.