Avid 2008 Annual Report Download - page 89

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84
The following is a summary of depreciation and capital expenditures by reportable segment for the years ended
December 31, 2008, 2007 and 2006 (in thousands):
2008 2007 2006
Professional Video:
Depreciation $ 12,778 $ 15,845 $ 16,355
Capital expenditures 11,381 16,528 15,257
Audio:
Depreciation $ 6,175 $ 4,523 $ 3,486
Capital expenditures 4,338 8,642 4,858
Consumer Video:
Depreciation $ 1,926 $ 734 $ 853
Capital expenditures 1,410 980 658
The following table summarizes the Company’s revenues by country as of December 31, 2008, 2007 and 2006 (in
thousands). The categorization of revenues is based on the country in which the customer resides.
2008 2007 2006
Revenues:
United States $ 331,983 $ 387,243 $ 393,243
Other countries 512,918 542,327 517,335
Total revenues $ 844,901 $ 929,570 $ 910,578
The following table summarizes the Company’s long-lived assets, by country as of December 31, 2008, 2008 and
2006 (in thousands):
2008 2007
Long-lived assets:
United States $ 33,512 $ 37,700
Other countries 15,610 18,979
Total long-lived assets $ 49,122 $ 56,679
P. FOREIGN CURRENCY FORWARD CONTRACTS
The Company has significant international operations and, therefore, the Company's revenues, earnings, cash flows
and financial position are exposed to foreign currency risk from foreign currency denominated receivables, payables
and sales transactions, as well as net investments in foreign operations. The Company derives more than half of its
revenues from customers outside the United States. This business is, for the most part, transacted through international
subsidiaries and generally in the currency of the end-user customers. Therefore, the Company is exposed to the risks
that changes in foreign currency could adversely impact its revenues, net income and cash flow. To hedge against the
foreign exchange exposure of certain forecasted receivables, payables and cash balances of foreign subsidiaries, the
Company enters into short-term foreign currency forward contracts. There are two objectives of the Company's
foreign currency forward contract program: (1) to offset any foreign exchange currency risk associated with cash
receipts expected to be received from the Company's customers over the next 30-day period and (2) to offset the
impact of foreign currency exchange on the Company's net monetary assets denominated in currencies other than the
functional currency of the legal entity. These forward contracts typically mature within 30 days of execution.