Affirm Holdings Inc
For the period ended Dec 31, 2023. Filed Feb 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2023 · Filed Feb 8, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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12. Derivative Financial Instruments
- Derivative Financial Instruments
The following table summarizes the total fair value, including interest accruals, and outstanding notional amounts of derivative instruments as of December 31, 2023 and June 30, 2023 (in thousands):
| December 31, 2023 | June 30, 2023 | |||||
|---|---|---|---|---|---|---|
| Notional Amount | Derivative Assets | Derivative Liabilities | Notional Amount | Derivative Assets | Derivative Liabilities | |
| Derivatives designated as cash flow hedges | ||||||
| Interest rate contracts - cash flow hedges | $450,000 | $162 | $(73) | $800,000 | $751 | $— |
| Derivatives not designated as hedges | ||||||
| Interest rate contracts | 928,969 | 22,601 | — | 2,102,944 | 49,794 | — |
| Total gross derivative assets/liabilities | $1,378,969 | $22,763 | $(73) | $2,902,944 | $50,545 | $— |
The following table summarizes the impact of the cash flow hedges on Accumulated Other Comprehensive Income (“AOCI”) (in thousands):
| Three Months Ended December 31, 2023 | Six Months Ended December 31, 2023 | |
|---|---|---|
| Balance at beginning of period | 1,514 | 751 |
| Changes in fair value | (103) | 911 |
| Amounts reclassified into earnings (1) | (511) | (762) |
| Balance at end of period (2) | $900 | $900 |
(1)The amounts reclassified into earnings are presented in the interim consolidated statements of income within funding costs.
(2)Over the next 12 months, we expect to reclassify $1.8 million of net derivative gains included in AOCI into funding costs within our interim consolidated statements of operations and comprehensive loss.
The following table summarizes the impact of the derivative instruments on income and indicates where within the interim consolidated statements of operations and comprehensive loss such impact is reported (in thousands):
| Three Months Ended December 31, | Six Months Ended December 31, | |||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Location of gains (losses) where the effects of derivatives are recorded | ||||
| The effects of cash flow hedging | ||||
| Funding costs | 511 | — | 762 | — |
| The effects of derivatives not designated in hedging relationships | ||||
| Other income, net | (5,708) | 6,845 | (1,729) | 37,510 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.