Page 297 - 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:
Financial assets- current
Cash flow hedges
Forward exchange contracts
Financial liabilities- current
Cash flow hedges
Forward exchange contracts
December 31, 2017
$ 7,378
$ 15,562
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.
Outstanding forward exchange contracts consisted of the following:
Maturity Date
December 31, 2017
Sell NT$/Buy EUR February 2018 to May 2018
Contract Amount (In Thousands)
NT$2,649,104/EUR75,000
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