LeapFrog 2010 Annual Report Download - page 50

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Our foreign exchange forward contracts generally have original maturities of one month or less. A summary of
all foreign exchange forward contracts that were outstanding as of December 31, 2010 and 2009 is as follows:
2010 2009
Average
Forward
Exchange
Rate per $1
Notional
Amount in
Local
Currency
Fair Value of
Instruments
in USD
Average
Forward
Exchange
Rate per $1
Notional
Amount in
Local
Currency
Fair Value of
Instruments
in USD
(1) (2) (1) (2)
Currencies:
British Pound (USD/GBP) ..... 1.590 11,125 $ (62) 1.615 628 $ (11)
Euro (USD/Euro) ............. 1.336 3,748 (22) 1.435 4,113 171
Canadian Dollar (CAD/USD) . . . 1.004 3,274 (31) 1.048 5,586 (4)
Mexican Peso (MXP/USD) ..... 12.498 29,176 (17) 13.065 11,115 4
Total fair value of
instruments in USD .... $(132) $160
(1) In thousands of local currency
(2) In thousands of USD
Cash equivalents and short-term and long-term investments are presented at fair value on our balance sheet. We
invest our excess cash in accordance with our investment policy. At December 31, 2010, we did not hold any
cash equivalents. As of December 31, 2009, our excess cash was invested only in money market funds. Any
adverse changes in interest rates or securities prices may decrease the value of our investments and operating
results.
We experience interest rate risk and impairment risk only on our long-term investment in ARS, as we have no
long-term borrowings. We evaluate this investment on a quarterly basis and will continue to recognize
impairment losses in the statements of operations, if and when they occur.
40