In November 2015, we implemented a program to hedge the foreign currency exposure risk related to cert ain forecasted inventory purchases denominated in Japanese yen. The derivative instruments we use are foreign currency forward contracts and are designated as cash flow hedges with maturity dates of 12 months or less. We do not enter into derivative contra cts for trading or speculative purposes. We document each hedge relationship and assess its initial effectiveness at the inception of the hedge contract and we measure its ongoing effectiveness on a quarterly basis using regression analysis. During the ter m of an effective hedge contract, we record gains and losses within accumulated other comprehensive loss. We reclassify these gains or losses to costs of automotive sales in the period the related finished goods inventory is sold or over the depreciation p eriod for those sales accounted for as leases. Although our contracts are considered effective hedges, we may experience small amounts of ineffectiveness due to timing differences between our actual inventory purchases and the settlement date of the relate d foreign currency forward contracts. Ineffectiveness related to the hedges is immaterial as of June 30, 2016. As of June 30, 2016 we had recorded a cumulative gain of $ 38.3 million to AOCI related to our outstanding foreign currency cash flow hedges. If t he U.S. dollar had strengthened by 10% as of June 30, 2016, the gain recorded in AOCI related to our cumulative foreign exchange contracts before tax effect would have been reduced by approximately $ 22.4 million .
I had such high hopes for Tesla. 
