Weighted
Contract average
amount exchange Maximum Fair
in rate in period value
U.S. U.S. in gain
Currency dollars dollars months (loss)
------------------------------------------------- -------- ------- ---------
Canadian dollar $ 232.5 $ 0.75 12 $ (3.1)
Thai baht 95.6 0.03 12 (1.9)
Malaysian ringgit 46.8 0.24 11 (2.9)
Mexican peso 23.7 0.05 12 (1.3)
British pound 119.4 1.26 4 2.7
Chinese renminbi 77.8 0.15 12 (1.9)
Euro 52.7 1.09 12 0.9
Romanian leu 18.5 0.25 12 (1.1)
Singapore dollar 24.3 0.72 12 (1.0)
Other 5.1 -
-------- ---------
Total $ 696.4 $ (9.6)
======== =========
At December 31, 2016, the fair value of the outstanding contracts was a net unrealized loss of $9.6 (December 31, 2015 -- net unrealized loss of $24.0). Changes in the fair value of hedging derivatives to which we apply cash flow hedge accounting, to the extent effective, are deferred in other comprehensive income (loss) until the expenses or items being hedged are recognized in our consolidated statement of operations. Any hedge ineffectiveness, which at December 31, 2016 was not significant, is recognized immediately in our consolidated statement of operations. At December 31, 2016, we recorded $5.9 of derivative assets in other current assets, and $15.5 of derivative liabilities in accrued and other current liabilities (December 31, 2015 -- $2.8 of derivative assets in other current assets and $26.8 of derivative liabilities in accrued and other current and other non-current liabilities). The unrealized gains or losses are a result of fluctuations in foreign exchange rates between the date the currency forward contracts were entered into and the valuation date at period end.
14. CONTINGENCIES
Litigation
In the normal course of our operations, we may be subject to lawsuits, investigations and other claims, including environmental, labor, product, customer disputes and other matters. Management believes that adequate provisions have been recorded in the accounts where required. Although it is not always possible to estimate the extent of potential costs, if any, management believes that the ultimate resolution of all such pending matters will not have a material adverse impact on our financial performance, financial position or liquidity.
In 2007, securities class action proceedings were initiated against us and our former Chief Executive and Chief Financial Officers in the Ontario Superior Court of Justice. The proceedings were finally dismissed on January 16, 2017 with no payments by the defendants.
Income taxes
We are subject to tax audits globally by various tax authorities of historical information, which could result in additional tax expense in future periods relating to prior results. Reviews by tax authorities generally focus on, but are not limited to, the validity of our inter-company transactions, including financing and transfer pricing policies which generally involve subjective areas of taxation and a significant degree of judgment. If any of these tax authorities are successful with their challenges, our income tax expense may be adversely affected and we could also be subject to interest and penalty charges.
