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This excerpt taken from the NDAQ 10-Q filed May 8, 2009. 14. Derivative Financial Instruments and Hedging Activities On January 1, 2009, we adopted the provisions of SFAS 161 which requires enhanced disclosures surrounding derivative instruments and hedging activities. See “SFAS No. 161,” of Note 3, “Recent Accounting Pronouncements,” for further discussion. In the ordinary course of business, we may enter into various types of derivative transactions. These derivative transactions include:
NASDAQ OMX may use these derivative financial instruments to manage exposure to various market risks, primarily foreign currency exchange rate fluctuations and changes in interest rates on our variable rate debt, and are an integral component of our market risk and related asset/liability management strategy and processes. These excerpts taken from the NDAQ 10-K filed Feb 27, 2009. Derivative Financial Instruments and Hedging Activities
To the extent that we engage in any hedging activity, we account for our hedging activity in accordance with SFAS 133. At December 31, 2008, we held derivative financial instruments which were designated and qualified for hedge accounting. Derivative financial instruments which are designated or qualify for hedge accounting, are recognized in the balance sheets at fair value as either assets or liabilities. The fair value of our derivative financial instruments are determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market data inputs. We report our derivative assets in other current assets and our derivative liabilities in accounts payable and accrued expenses in the Consolidated Balance Sheets. Any ineffectiveness is recorded in earnings. The accounting for the change in the fair value of a derivative financial instrument depends on its intended use and the resulting hedge designation, if any. As of December 31, 2008, our derivative financial instruments which were designated and qualified for hedge accounting were cash flow hedges of our floating rate debt. As such, the accounting for the change in fair value of the derivative was included in accumulated other comprehensive income in the Consolidated Balance Sheets. Any ineffectiveness would impact earnings through interest expense. There was no material ineffectiveness recorded in earnings for the year ended December 31, 2008. For further discussion of hedging activities, see below and Note 17, “Derivative Financial Instruments and Hedging Activities.”
17. Derivative Financial Instruments and Hedging Activities
In the ordinary course of business, we may enter into various types of derivative transactions. These derivative transactions include:
NASDAQ OMX may use these derivative financial instruments to manage exposure to various market risks, primarily foreign currency exchange rate fluctuations and changes in interest rates on our variable rate debt, and are an integral component of our market risk and related asset/liability management strategy and processes.
Depending on market conditions, we may use foreign currency future, forward and option contracts to limit our exposure to foreign currency exchange rate fluctuations on contracted revenue streams (hedged item) relating to our market technology sales. When the contracted revenue streams meet the definition of a firm commitment in accordance with SFAS 133, these derivative contracts may be designated as fair value hedges, if the applicable hedge criteria is met. Changes in fair value on the derivatives and the related hedged items are recognized in other income (expense), net in the Consolidated Statements of Income.
17. Derivative Financial Instruments and Hedging Activities In the ordinary course of business, we may enter into various types of
fluctuations and changes in interest rates on our variable rate debt, and are an integral component of our market risk and related asset/liability management strategy and processes. Depending on market conditions, we may use foreign currency future, forward and option contracts to limit our exposure to
This excerpt taken from the NDAQ 10-Q filed Nov 7, 2008. 13. Derivative Financial Instruments and Hedging Activities In the ordinary course of business, we may enter into various types of derivative transactions. These derivative transactions include:
NASDAQ OMX may use these derivative financial instruments to manage exposure to various market risks, primarily foreign currency exchange rate fluctuations and changes in interest rates on our variable rate debt, and are an integral component of our market risk and related asset/liability management strategy and processes. Depending on market conditions, we may use foreign currency future, forward and option contracts to limit our exposure to foreign currency exchange rate fluctuations on contracted revenue streams (hedged item) relating to our market technology sales.
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Table of ContentsWhen the contracted revenue streams meet the definition of a firm commitment in accordance with SFAS 133, these derivative contracts may be designated as fair value hedges, if the applicable hedge criteria is met. Changes in fair value on the derivatives and the related hedged items are recognized in other income (expense), net in the Condensed Consolidated Statements of Income. This excerpt taken from the NDAQ 10-Q filed Aug 8, 2008. 13. Derivative Financial Instruments and Hedging Activities In the ordinary course of business, we may enter into various types of derivative transactions. These derivative transactions include:
NASDAQ OMX may use these derivative financial instruments to manage exposure to various market risks, primarily foreign currency exchange rate fluctuations and are an integral component of our market risk and related asset/liability management strategy and processes. Depending on market conditions, we may use foreign currency future, forward and option contracts to limit our exposure to foreign currency exchange rate fluctuations on contracted revenue streams (hedged item) relating to our market technology sales. When the contracted revenue streams meet the definition of a firm commitment in accordance with SFAS 133, these derivative contracts are designated as fair value hedges. Changes in fair value on the derivatives and the related hedged items are recognized in other income (expense), net in the Condensed Consolidated Statements of Income. This excerpt taken from the NDAQ 10-Q filed May 9, 2008. 13. Derivative Financial Instruments and Hedging Activities In the ordinary course of business, we may enter into various types of derivative transactions. These derivative transactions include:
NASDAQ OMX uses these derivative financial instruments to manage exposure to various market risks, primarily foreign currency exchange rate fluctuations and are an integral component of our market risk and related asset/liability management strategy and processes.
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Table of ContentsWe use foreign currency future, forward and option contracts to limit our exposure to foreign currency exchange rate fluctuations on contracted revenue streams (hedged item) relating to our market technology sales. When the contracted revenue streams meet the definition of a firm commitment in accordance with SFAS 133, these derivative contracts are designated as fair value hedges. Changes in fair value on the derivatives and the related hedged items are recognized in other income (expense), net in the Condensed Consolidated Statements of Income. At March 31, 2008, we had $6.5 million of assets included in other current assets and $0.1 million of liabilities included in accounts payable and accrued expenses related to our fair value hedges in our Condensed Consolidated Balance Sheets. For the first quarter 2008 there was no material ineffectiveness recognized in earnings. In addition, for the first quarter of 2008 and 2007 we did not have any cash flow or net investment hedges. | EXCERPTS ON THIS PAGE:
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