Adobe 2006 Annual Report Download - page 107
Download and view the complete annual report
Please find page 107 of the 2006 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
 |
 |
107
A summary of the amounts included on the consolidated income statement due to occurrence of the
hedged transaction and or time value degradation on open hedge transactions is as follows:
Income Statement Years Ended
December 1
,
2006 December 2
,
2005 December 3
,
2004
Revenue
Other
Income
(Loss) Revenue
Other
Income
(Loss)
Revenue
Other
Income
(Loss)
Gain (loss) on completed hedge
transactions:
Net realized gain (loss) reclassified
from other accumulated
comprehensive income to revenue..$ 5,035 $ ―$ 7,453 $ ―$ (405) $ ―
Net realized loss from the cost of
purchased options ........................... ― (8,873) ― (6,624) ―
(6,829)
Gain (loss) on open hedge
transactions:
Net unrealized gain (loss) from time
value degradation on open cash
flow hedge transactions .................. ― (3,913) ― 2,648 ―
(2,602)
$ 5,035 $ (12,786) $ 7,453 $ (3,976) $ (405) $ (9,431)
Balance Sheet Hedging - Hedging of Foreign Currency Assets and Liabilities
We hedge our net recognized foreign currency assets and liabilities with forward foreign exchange
contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in foreign
currency exchange rates. These derivative instruments hedge assets and liabilities that are denominated in
foreign currencies and are carried at fair value with changes in the fair value recorded as other income (loss).
These derivative instruments do not subject us to material balance sheet risk due to exchange rate
movements because gains and losses on these derivatives are intended to offset gains and losses on the assets
and liabilities being hedged. At December 1, 2006, the outstanding balance sheet hedging derivatives had
maturities of 150 days or less.
Net gains (losses) recognized in other income (loss) relating to balance sheet hedging for fiscal 2006,
2005, 2004 were as follows:
2006 2005 2004
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income
(loss) ................................................................................
$ 11,046
$ (9,604)
$ 4,586
Net unrealized gain (loss) recognized in other income
(loss) ................................................................................
4,721
(4,088)
3,949
15,767 (13,692) 8,535
Gain (loss) on hedges of foreign currency assets and
liabilities:
Net realized gain (loss) recognized in other income
(loss) ................................................................................
(4,179)
9,893
(11,123)
Net unrealized gain (loss) recognized in other income
(loss) ................................................................................
(6,879)
5,747
3,150
(11,058) 15,640 (7,973)
Net gain recognized in other income ................................... $ 4,709 $ 1,948 $ 562