Plantronics 2005 Annual Report Download - page 76

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contracts hedge against a portion of our forecasted foreign denominated cost of our manufacturing and
design center construction costs. If these net exposed currency positions are subjected to either a 10%
appreciation or 10% depreciation versus the U.S. dollar, we could incur a loss of $1.0 million or a gain of
$1.5 million.
The table below presents the impact on our currency option contracts of a hypothetical 10% appreciation
and a 10% depreciation of the U.S. dollar against the indicated option contract type for cash flow hedges.
FX Gain FX Gain
(Loss) From (Loss) From
USD Value 10% 10%
March 31, 2005 of Net FX Appreciation Depreciation
in millions Contracts of USD of USD
Currency – forward contracts
China Yuan $11.7 $(1.0) $1.5
48 ⯗Plantronics