Page 193 - TSMC 2018 Annual Report

The effect for the year ended December 31, 2018 is detailed below:
Hedged Items
Hedging Instruments
Forward exchange contracts Foreign currency deposits
Hedged Items
Forecast transaction (capital expenditures)
2017
Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness
$ 34,563 6,412
$ 40,975 $ (40,975)
The Company’s hedging policies for 2017 are the same as those mentioned previously in 2018, the instruments employed are as follows:
December 31, 2017
$ 27,016 7,378 $ 34,394
$ 15,562 The Company entered into interest rate futures contracts, which are used to partially hedge against the price
risk caused by changes in interest rates in the Company’s investments in fixed income securities. The outstanding interest rate futures contracts consisted of the following:
Contract Amount Maturity Period (US$ in Thousands)
December 31, 2017
March 2018 US$ 169,400
The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). These contracts have maturities of 12 months or less.
Financial assets- current
Fair value hedges Interestratefuturescontracts
Cash flow hedges
Forward exchange contracts
Financial liabilities- current
Cash flow hedges
Forward exchange contracts
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