Plantronics 2008 Annual Report Download - page 56

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50
FX FX
Gain (Loss) Gain (Loss)
USD Value From 10% From 10%
of Net FX Appreciation Depreciation
Currency - forward contracts Position Contracts of USD of USD
Euro Sell Euro $ 24.9 $ 2.5 $ (2.5)
Great British Pound Sell GBP 12.3 1.2 (1.2)
Net position $ 37.2 $ 3.7 $ (3.7)
Cash Flow Hedges
Approximately 36%, 39%, and 39% of revenue in fiscal 2006, 2007, and 2008, respectively, was derived from sales outside of the
United States, which were predominantly denominated in the Euro and the Great British Pound in each of the fiscal years.
As of March 31, 2008, we had foreign currency call option contracts of approximately €48.4 million and £18.7 million denominated in
Euros and Great British Pounds, respectively. As of March 31, 2008, we also had foreign currency put option contracts of
approximately €48.4 million and £18.7 million denominated in Euros and Great British Pounds, respectively. Collectively, our option
contracts hedge against a portion of our forecasted foreign denominated sales. 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 gain of $9.9 million or a loss of $10.6 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 FX
Gain (Loss) Gain (Loss)
USD Value From 10% From 10%
of Net FX Appreciation Depreciation
Currency - option contracts Contracts of USD of USD
Call options $ (109.0) $ 5.9 $ (9.8)
Put options 103.4 4.0 (0.8)
Net position $ (5.6) $ 9.9 $ (10.6)