J.M. Smucker Company's derivatives disclosures for fiscal 2014. In addition to the tabular disclosures, Smucker discloses the following information on its interest rate swaps (excerpts). Amounts are in millions.

Required

a. Identify the types of accounting Smucker uses for its commodity contracts, foreign currency ex- change contracts, and interest rate contracts (i.e., fair value hedge accounting, cash flow hedge ac- counting, normal accounting).

b. Prepare the summary journal entry made in fiscal 2014 to record value changes for Smucker’s commodity contracts designated as cash flow hedges.

c. Prepare the summary journal entry made in fiscal 2014 to record value changes for Smucker’s derivatives that are not designated as qualified hedges.

d. Where are hedging gains and losses reported on Smucker’s income statement? Where are gains and losses on derivatives not qualifying as hedges reported on Smucker’s income statement? Comment on the appropriateness of Smucker’s income statement display of derivatives gains and losses.

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During 2014, we entered into an interest rate swap which was designated as a fair value hedge and used to hedge against the changes in the fair value of the debt. The difference between the fixed-rate and variable-rate cash flows resulted in a reduction in interest expense for the year ended April 30, 2014. Changes in the fair value of the swap were recognized in interest expense. At April 30, 2014, the net gain position on the derivative instrument of $14.9 had no net impact to earnings, as the change in the fair value of the derivative was equal to the change in fair value of the underlying debt. Included as a component of accumulated other comprehensive loss at April 30, 2014, were deferred losses of $4.8 related to the termination of prior interest rate swaps. We reclassified $0.6 of the loss... from other comprehensive income to interest expense during 2014.