Plantronics 2011 Annual Report Download - page 81

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In fiscal 2011 and 2010, there were no material realized gains on Peso cash flow hedges recognized in Cost of revenues in the
Consolidated statements of operations and there were no material gains in Accumulated other comprehensive income to be
recognized during the next 12 months due to the recognition of the hedged forecasted expenditures.
The following table summarizes the Company's outstanding Peso currency swaps and approximate U.S. Dollar equivalent (“USD”),
at March 31, 2011:
MX$
Local Currency
(in thousands)
343,900
USD Equivalent
(in thousands)
$ 27,901
Position
Buy Peso
Maturity
Monthly over 12
months
The amounts in the tables below include fair value adjustments related to the Company’s own credit risk and counterparty credit
risk.
Fair Value of Derivative Contracts
The fair value of derivative contracts were as follows:
(in thousands)
Foreign exchange contracts designated as cash flow hedges
Total derivatives designated as hedging instruments
Foreign exchange contracts not designated
Total derivatives
Derivative Assets Reported
in Other Current Assets
March 31,
2011
$ 360
360
—
$ 360
March 31,
2010
$ 2,845
2,845
—
$ 2,845
Derivative Liabilities Reported
in Accrued Liabilities
March 31,
2011
$ 4,174
4,174
—
$ 4,174
March 31,
2010
$ 74
74
—
$ 74
Effect of Designated Derivative Contracts on Accumulated Other Comprehensive Income
The following table represents only the balance of designated derivative contracts under the Derivatives and Hedging Topic of
the FASB ASC as of March 31, 2011 and 2010, and the impact of designated derivative contracts before tax on Accumulated other
comprehensive income for fiscal years ended March 31, 2010 and 2011:
(in thousands)
Foreign exchange contracts designated as cash flow hedges
March 31,
2010
$ 2,771
Amount of gain
(loss) recognized in
OCI (effective
portion)
$ (3,668)
Amount of gain
(loss) reclassified
from OCI to
income (loss)
(effective portion)
$ 2,917
March 31,
2011
$ (3,814)
(in thousands)
Foreign exchange contracts designated as cash flow hedges
March 31,
2009
$ 6,738
Amount of gain
(loss) recognized in
OCI (effective
portion)
$ (1,685)
Amount of gain
(loss) reclassified
from OCI to
income (loss)
(effective portion)
$ 2,282
March 31,
2010
$ 2,771
Effect of Designated Derivative Contracts on the Consolidated Statements of Operations
The effect of designated derivative contracts under the Derivatives and Hedging Topic of the FASB ASC on results of operations
recognized in Gross profit in the Consolidated statements of operations was as follows:
(in thousands)
Gain on foreign exchange contracts designated as cash flow hedges
Fiscal Year Ended March 31,
2011
$ 2,917
2010
$ 2,282
2009
$ 4,505
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