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8-K
SUNEDISON, INC. filed this Form 8-K on 09/09/2013
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Defined Contribution Plans

SunEdison sponsors a defined contribution plan under Section 401(k) of the Internal Revenue Code covering all U.S. salaried and hourly employees, and a defined contribution plan in Taiwan covering most salaried and hourly employees of our Taiwan subsidiary. Our allocated costs under this plan included in our combined statement of operations totaled $4.0 million and $4.5 million for 2012 and 2011, respectively.

Other Employee-Related Liabilities

Employees of our subsidiaries in Italy and Korea are covered by an end of service entitlement that provides payment upon termination of employment. Contributions to these plans are based on statutory requirements and are not actuarially determined. The accrued liability was $21.6 million at December 31, 2012 and $20.9 million at December 31, 2011, and is included in other long-term liabilities and accrued liabilities on our combined balance sheet. The accrued liability is based on the vested benefits to which the employee is entitled assuming employee termination at the measurement date.

10. DERIVATIVES AND HEDGING INSTRUMENTS

SunEdison Semiconductor’s derivatives and hedging activities consist of:

 

                 Assets (Liabilities) Fair Value  
In millions   

Balance Sheet Location

          As of
December 31,
2012
    As of
December 31,
2011
    As of June 30,
2013
(unaudited)
 

Derivatives not designated as hedging:

            

Currency forward contracts (1)

   Prepaid and other current assets       $ 0.3      $ 0.3      $           —   

Currency forward contracts (1)

   Accrued liabilities       $ (6.4   $ (0.8   $ (1.5

(1) Currency forward contracts are recorded on the combined balance sheet at fair value using Level 1 inputs.

  

         

 

 
          Losses (Gains)  
    

 

   Year Ended
December 31,
    Six Months Ended June 30,  
In millions   

Statement of

Operations Location

   2012      2011     2013
(unaudited)
    2012
(unaudited)
 

Derivatives not designated as hedging:

            

Currency forward contracts

   Other, net    $         5.2       $         0.2      $         10.4      $         0.2   

To mitigate financial market risks of fluctuations in foreign currency exchange rates, we utilize currency forward contracts. We do not use derivative financial instruments for speculative or trading purposes. We generally hedge transactional currency risks with currency forward contracts. Gains and losses on these foreign currency exposures are generally offset by corresponding losses and gains on the related hedging instruments, reducing the net exposure to SunEdison Semiconductor. A substantial portion of our revenue and capital spending is transacted in the U.S. dollar. However, we do enter into transactions in other currencies, primarily the Euro, the Japanese Yen and certain other Asian currencies. To protect against reductions in value and volatility of future cash flows caused by changes in foreign exchange rates, we have established transaction-based hedging programs. Our hedging programs reduce, but do not always eliminate, the impact of foreign currency exchange rate movements. At any point in time, we may have outstanding contracts with several major financial

 

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