Spansion Inc. - 10-Q filing on 2014-08-01

Note 11 - Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 29, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

		Three Months Ended								Six Months Ended
		June 29, 2014				June 30, 2013				June 29, 2014				June 30, 2013
						(in thousands)

Beginning Balance		$	(3,330	)		$	5,991			$	2			$	1
Net loss (gain) reclassified into earnings on cash flow hedges (effective portion)			1,601				(2,835	)			2,983				(4,588	)
Net gain reclassified into earnings on cash flow hedges (ineffective portion)			-				(2,415	)			-				(2,415	)
Net unrealized hedge gain (loss) arising during the period			(2,176	)			6,317				(6,890	)			14,060
Ending Balance		$	(3,905	)		$	7,058			$	(3,905	)		$	7,058

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

Buy / Sell		June 29, 2014			December 29, 2013
		(in millions)

Japanese Yen / US dollar			-		JPY 2,945/$28.2
US dollar / Japanese Yen		$51.1/JPY 5,206			$42.0/JPY 4,047
US dollar / EUR		$33.4/EUR 24.5			$23.4/EUR 17.1

Derivative Instruments, Gain (Loss) [Table Text Block]

		Three Months Ended								Six Months Ended
		June 29, 2014				June 30, 2013				June 29, 2014				June 30, 2013
		(in thousands)
Derivatives Designated as Hedging Instruments
Foreign Exchange Forward Contracts
Net unrealized gain (loss) recognized in OCI ⁽¹⁾		$	(2,176	)		$	6,317			$	(6,890	)		$	14,060
Net loss (gain) reclassified from accumulated OCI into income (effective portion)⁽²⁾		$	1,601			$	(2,835	)		$	2,983			$	(4,588	)
Net gain reclassified from accumulated OCI into income (ineffective portion) ⁽³⁾		$	-			$	(2,415	)		$	-			$	(2,415	)
Derivatives Not Designated as Hedging Instruments
Net gain (loss) recognized in income
Swap interest expense ⁽⁴⁾		$	-			$	(2	)		$	-			$	(8	)
Foreign Exchange Forward Contracts ⁽⁵⁾		$	1,204			$	(2,349	)		$	1,994			$	240
Foreign Exchange Options Contracts ⁽⁵⁾		$	-			$	197			$	-			$	197

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

		June 29, 2014								December 29, 2013
Balance sheet location		Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
		(in thousands)
Prepaid expenses and other current assets Foreign Exchange Forward Contracts		$	-			$	-			$	-			$	3,493

Accrued liabilities and other Foreign Exchange Forward Contracts		$	3,757			$	272			$	-			$	313

Offsetting Assets [Table Text Block]

														Gross amounts not offset in the Condensed Consolidated Balance Sheets but have legal rights to offset
		Gross amounts of recognized Assets				Gross amounts offset in the Condensed Consolidated Balance Sheets				Net amounts of Assets presented in the Condensed Consolidated Balance Sheets				Financial Instruments ⁽¹⁾				Cash collateral pledged				Net amount
		(in thousands)
As of December 29, 2013:
Foreign exchange contracts		$	3,493			$	-			$	3,493			$	(1,572	)		$	-			$	1,921

Offsetting Liabilities [Table Text Block]

														Gross amounts not offset in the Condensed Consolidated Balance Sheets but have legal rights to offset
		Gross amounts of recognized Liabilities				Gross amounts offset in the Condensed Consolidated Balance Sheets				Net amounts of Liabilities presented in the Condensed Consolidated Balance Sheets				Financial Instruments				Cash collateral pledged				Net amount
		(in thousands)
As of June 29, 2014:
Foreign exchange contracts		$	4,029			$	-			$	4,029			$	(2,076	)⁽¹⁾		$	-			$	1,953
As of December 29, 2013:
Foreign exchange contracts		$	313			$	-			$	313			$	(226	)⁽²⁾		$	-			$	87