|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the PBG 8-K filed Sep 16, 2009. Financial Instruments and Risk
Management – We use derivative instruments
to hedge against the risk of adverse movements associated with
commodity prices, interest rates and foreign currency. Our
corporate policy prohibits the use of derivative instruments for
trading or speculative purposes, and we have procedures in place
to monitor and control their use.
All derivative instruments are recorded at fair value as either
assets or liabilities in our Consolidated Balance Sheets.
Derivative instruments are generally designated and accounted
for as either a hedge of a recognized asset or liability
(“fair value hedge”) or a hedge of a forecasted
transaction (“cash flow hedge”). The derivative’s
gain or loss recognized in earnings is recorded consistent with
the expense classification of the underlying hedged item.
If a fair value or cash flow hedge were to cease to qualify for
hedge accounting or were terminated, it would continue to be
carried on the balance sheet at fair value until settled, but
hedge accounting would be discontinued prospectively. If the
underlying hedged transaction ceases to exist, any associated
amounts reported in accumulated other comprehensive loss are
reclassified to earnings at that time.
We also may enter into a derivative instrument for which hedge
accounting is not required because it is entered into to offset
changes in the fair value of an underlying transaction
recognized in earnings (“economic hedge”). These
instruments are reflected in the Consolidated Balance Sheets at
fair value with changes in fair value recognized in earnings.
25
Table of Contents
These excerpts taken from the PBG 10-K filed Feb 20, 2009. Financial Instruments and Risk
Management – We use derivative instruments
to hedge against the risk of adverse movements associated with
commodity prices, interest rates and foreign currency. Our
corporate policy prohibits the use of derivative instruments for
trading or speculative purposes, and we have procedures in place
to monitor and control their use.
All derivative instruments are recorded at fair value as either
assets or liabilities in our Consolidated Balance Sheets.
Derivative instruments are generally designated and accounted
for as either a hedge of a recognized asset or liability
(“fair value hedge”) or a hedge of a forecasted
transaction (“cash flow hedge”). The derivative’s
gain or loss recognized in earnings is recorded consistent with
the expense classification of the underlying hedged item.
If a fair value or cash flow hedge were to cease to qualify for
hedge accounting or were terminated, it would continue to be
carried on the balance sheet at fair value until settled, but
hedge accounting would be discontinued prospectively. If the
underlying hedged transaction ceases to exist, any associated
amounts reported in accumulated other comprehensive loss are
reclassified to earnings at that time.
We also may enter into a derivative instrument for which hedge
accounting is not required because it is entered into to offset
changes in the fair value of an underlying transaction
recognized in earnings (“economic hedge”). These
instruments are reflected in the Consolidated Balance Sheets at
fair value with changes in fair value recognized in earnings.
37
Table of Contents
Financial Instruments and Risk Management – We use derivative instruments to hedge against the risk of adverse movements associated with commodity prices, interest rates and foreign currency. Our corporate policy prohibits the use of derivative instruments for trading or speculative purposes, and we have procedures in place to monitor and control their use. All derivative instruments are recorded at fair value as either assets or liabilities in our Consolidated Balance Sheets. Derivative instruments are generally designated and accounted for as either a hedge of a recognized asset or liability (“fair value hedge”) or a hedge of a forecasted transaction (“cash flow hedge”). The derivative’s gain or loss recognized in earnings is recorded consistent with the expense classification of the underlying hedged item. If a fair value or cash flow hedge were to cease to qualify for hedge accounting or were terminated, it would continue to be carried on the balance sheet at fair value until settled, but hedge accounting would be discontinued prospectively. If the underlying hedged transaction ceases to exist, any associated amounts reported in accumulated other comprehensive loss are reclassified to earnings at that time. We also may enter into a derivative instrument for which hedge accounting is not required because it is entered into to offset changes in the fair value of an underlying transaction recognized in earnings (“economic hedge”). These instruments are reflected in the Consolidated Balance Sheets at fair value with changes in fair value recognized in earnings. 37 Table of Contents
These excerpts taken from the PBG 10-K filed Feb 27, 2008. Financial Instruments and Risk
Management – We use derivative instruments
to hedge against the risk of adverse movements associated with
commodity prices, interest rates and foreign currency. Our
corporate policy prohibits the use of derivative instruments for
trading or speculative purposes, and we have procedures in place
to monitor and control their use.
All derivative instruments are recorded at fair value as either
assets or liabilities in our Consolidated Balance Sheets.
Derivative instruments are generally designated and accounted
for as either a hedge of a recognized asset or liability
(“fair value hedge”) or a hedge of a forecasted
transaction (“cash flow hedge”). The derivative’s
gain or loss recognized in earnings is recorded consistent with
the expense classification of the underlying hedged item.
If a fair value or cash flow hedge were to cease to qualify for
hedge accounting or were terminated, it would continue to be
carried on the balance sheet at fair value until settled, but
hedge accounting would be discontinued prospectively. If the
underlying hedged transaction ceases to exist, any associated
amounts reported in accumulated other comprehensive loss are
reclassified to earnings at that time.
We also may enter into a derivative instrument for which hedge
accounting is not required because it is entered into to offset
changes in the fair value of an underlying transaction
recognized in earnings (“economic hedge”). These
instruments are reflected in the Consolidated Balance Sheets at
fair value with changes in fair value recognized in earnings.
Financial Instruments and Risk Management – We use derivative instruments to hedge against the risk of adverse movements associated with commodity prices, interest rates and foreign currency. Our corporate policy prohibits the use of derivative instruments for trading or speculative purposes, and we have procedures in place to monitor and control their use. All derivative instruments are recorded at fair value as either assets or liabilities in our Consolidated Balance Sheets. Derivative instruments are generally designated and accounted for as either a hedge of a recognized asset or liability (“fair value hedge”) or a hedge of a forecasted transaction (“cash flow hedge”). The derivative’s gain or loss recognized in earnings is recorded consistent with the expense classification of the underlying hedged item. If a fair value or cash flow hedge were to cease to qualify for hedge accounting or were terminated, it would continue to be carried on the balance sheet at fair value until settled, but hedge accounting would be discontinued prospectively. If the underlying hedged transaction ceases to exist, any associated amounts reported in accumulated other comprehensive loss are reclassified to earnings at that time. We also may enter into a derivative instrument for which hedge accounting is not required because it is entered into to offset changes in the fair value of an underlying transaction recognized in earnings (“economic hedge”). These instruments are reflected in the Consolidated Balance Sheets at fair value with changes in fair value recognized in earnings. | EXCERPTS ON THIS PAGE:
RELATED TOPICS for PBG: |
| |||||||
