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value hedges. Malaysian Ringgit contracts are designated as cash flow hedges. British Pound Sterling, Euro, Japanese
Yen and Philippine Peso contracts are designated as fair value hedges. See Part II, Item 8, Notes 1 and 11 in the
Notes to Consolidated Financial Statements, included in this Annual Report on Form 10-K.
As of June 29, 2012, we had outstanding the following purchased foreign exchange contracts (in millions, except
weighted average contract rate):
Contract
Amount
Weighted Average
Contract Rate*
Unrealized
Loss
Foreign exchange contracts:
Cash flow hedges:
Malaysian Ringgit ....................... $323 3.13 $ 5
Singapore Dollar ........................ $ 21 1.26 —
Thai Baht ............................. $896 31.52 $11
Fair value hedges:
British Pound Sterling .................... $ 2 0.64 —
Euro ................................. $ 15 0.79 —
Japanese Yen ........................... $ 70 81.32 —
Philippine Peso ......................... $ 4 42.87 —
Singapore Dollar ........................ $ 3 1.26 —
Thai Baht ............................. $292 31.45 —
* Expressed in units of foreign currency per U.S. dollar.
In 2012, 2011 and 2010, total net realized transaction and foreign exchange contract currency gains and losses
were not material to our consolidated financial statements.
Disclosure About Other Market Risks
Variable Interest Rate Risk
Borrowings under the Credit Facility bear interest at a rate equal to, at the option of the applicable Borrower,
either (a) a LIBOR rate determined by reference to the British Bankers Association LIBOR Rate for the interest period
relevant to such borrowing, subject to certain exceptions (the “Eurodollar Rate”) or (b) a base rate determined by
reference to the higher of (i) the federal funds rate plus 0.50%, (ii) the prime rate as announced by Bank of America,
N.A. and (iii) the Eurodollar Rate plus 1.00% (the “Base Rate”), in each case plus an applicable margin. The appli-
cable margin for borrowings under the Credit Facility ranges from 1.50% to 2.50% with respect to borrowings at the
Eurodollar Rate and 0.50% to 1.50% with respect to borrowings at the Base Rate. The applicable margins for
borrowings under the Credit Facility are determined based upon a leverage ratio of the Company and its subsidiaries
calculated on a consolidated basis. If the federal funds rate, prime rate or LIBOR rate increase, our interest payments
could also increase. A one percent increase in the variable rate of interest on the term loan facility would increase
interest expense by approximately $22 million annually.
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