Herbalife Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Derivative Instruments and Hedging Activities (Tables)

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Foreign Currency Forward Contracts Outstanding

The table below describes all foreign currency forward contracts that were outstanding as of December 31, 2014 and December 31, 2013:


Foreign Currency	Average Contract Rate		Original Notional Amount		Fair Value Gain (Loss)
			(In millions)		(In millions)
At December 31, 2014
Buy Chinese yuan dollar sell Euro		7.72	$	8.0	$	0.2
Buy Euro sell Australian dollar		1.51		4.9		(0.1	)
Buy Euro sell Chilean peso		745.65		1.1		—
Buy Euro sell Indonesian rupiah		15,302.91		1.8		—
Buy Euro sell Mexican peso		18.04		153.3		(0.4	)
Buy Euro sell Malaysian ringgit		4.31		0.7		—
Buy Euro sell Peruvian nuevo sol		3.66		4.0		—
Buy Euro sell Philippine peso		55.39		1.7		—
Buy Euro sell Russian ruble		69.82		2.7		0.1
Buy Euro sell U.S. dollar		1.23		105.0		(2.0	)
Buy British pound sell Euro		0.80		2.3		—
Buy Russian ruble sell Euro		49.80		2.8		(1.0	)
Buy U.S. dollar sell Brazilian real		2.54		10.4		0.9
Buy U.S. dollar sell Colombian peso		2,084.12		4.8		0.6
Buy U.S. dollar sell Euro		1.32		132.6		10.7
Buy U.S. dollar sell South Korean won		1,081.96		7.7		0.1

Total forward contracts			$	443.8	$	9.1


Foreign Currency	Average Contract Rate		Original Notional Amount		Fair Value Gain (Loss)
			(In millions)		(In millions)
At December 31, 2013
Buy Australian dollar sell Euro		1.55	$	2.7	$	—
Buy Euro sell Australian dollar		1.52		4.5		0.1
Buy Euro sell Chilean peso		727.40		1.1		—
Buy Euro sell British pound		0.83		2.5		—
Buy Euro sell Indonesian rupiah		16,915.00		0.7		—
Buy Euro sell Mexican peso		17.51		150.3		4.9
Buy Euro sell Russian ruble		45.05		3.0		—
Buy Euro sell Singapore dollar		1.74		3.0		—
Buy Euro sell U.S. dollar		1.37		161.3		—
Buy British pound sell Euro		1.01		4.9		0.1
Buy Japanese yen sell U.S. dollar		104.71		2.9		—
Buy Malaysian ringgit sell U.S. dollar		3.30		5.3		—
Buy Singapore dollar sell Euro		1.71		2.0		—
Buy New Taiwan dollar sell U.S. dollar		29.54		14.9		(0.1	)
Buy U.S. dollar sell Brazilian real		2.35		12.8		0.6
Buy U.S. dollar sell Euro		1.34		171.8		(4.2	)
Buy U.S. dollar sell South Korean won		1,112.65		50.0		1.5

Total forward contracts			$	593.7	$	2.9

Gains (Losses) Relating to Derivative Instruments Recorded in Other Comprehensive Income (Loss)

The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive income (loss) during the years ended December 31, 2014, 2013, and 2012:


	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) For the Year Ended
	December 31, 2014		December 31, 2013		December 31, 2012
	(In millions)
Derivatives designated as hedging instruments:
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges	$	16.8	$	3.5	$	(3.3	)
Interest rate swaps		—		—	$	(0.6	)

Gains (Losses) Relating to Derivative Instruments Recorded to Income

The following table summarizes gains (losses) relating to derivative instruments recorded to income during the years ended December 31, 2014, 2013, and 2012:


	Amount of Gain (Loss) Recognized in Income For the Year Ended									Location of Gain (Loss) Recognized in Income
	December 31, 2014			December 31, 2013			December 31, 2012			Location of Gain (Loss) Recognized in Income
	(In millions)
Derivatives designated as hedging instruments:
Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges(1)	$	(4.6	)	$	(5.2	)	$	(1.8	)	Selling, general and administrative expenses
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	$	(26.2	)	$	6.4		$	(10.0	)	Selling, general and administrative expenses

(1)	For foreign exchange contracts designated as hedging instruments, the amounts recognized in income (loss) primarily represent the amounts excluded from the assessment of hedge effectiveness. There were no material ineffective amounts reported for derivatives designated as hedging instruments.

Gains (Losses) Relating to Derivative Instruments Reclassified from Accumulated Other Comprehensive Loss into Income Effective Portion

The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the years ended December 31, 2014, 2013, and 2012:


	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income								Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (effective portion)
	For the Year Ended
	December 31, 2014		December 31, 2013			December 31, 2012
	(In millions)
Derivatives designated as hedging instruments:
Foreign exchange currency contracts relating to inventory hedges	$	4.0	$	(4.1	)	$	0.1		Cost of sales
Foreign exchange currency contracts relating to intercompany management fee hedges		—	$	(0.7	)	$	4.5		Selling, general and administrative expenses
Interest rate contracts		—	$	(2.0	)	$	(3.6	)	Interest expense, net