Garmin 2009 Annual Report Download - page 80

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gainsorlosseshavebeenrealizedhistoricallyrelatedtothemovementsofthosecurrenciesrelativetotheU.S.
dollar.TheCompanybelievesthatgainsandlosseswillbecomemorematerialinthefutureasourEuropean
presencegrows.In2009,theEurostrengthened2.4%relativetotheU.S.dollarandtheBritishPoundSterling
strengthened8.3%relativetotheU.S.dollar.Thesecurrencymovesresultedinaforeigncurrencygainof$5.8
millioninGarminLtd.andourEuropeansubsidiaries.Thenetresultofthesecurrencymovescombinedwithother
gainsof$4.3million,andthetimingoftransactionsduringtheyearwasanetlossof$6.0millionfortheCompany
andacumulativetranslationadjustmentof$9.3millionattheendoffiscal2009.
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InterestRateRisk
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Wehavenooutstandinglong‐termdebtasofDecember26,2009.We,therefore,havenomeaningful
debt‐relatedinterestraterisk.
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Weareexposedtointerestrateriskinconnectionwithourinvestmentsinmarketablesecurities.As
interestrateschange,theunrealizedgainsandlossesassociatedwiththosesecuritieswillfluctuateaccordingly.A
hypotheticalchangeof10%ininterestrateswouldnothaveamaterialeffectonsuchunrealizedgainsorlosses.
AtDecember26,2009,cumulativeunrealizedlossesonthosesecuritieswere$21.8million.
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