LeapFrog 2011 Annual Report Download - page 49

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a $1.5 million realized loss on foreign exchange forward contracts in our U. S. segment for the three month
period ended September 30, 2011. We subsequently made improvements to our foreign currency hedging
program to provide greater assurance of accurate execution of our hedging determinations.
Our foreign exchange forward contracts generally have original maturities of one month or less. A summary
of all foreign exchange forward contracts outstanding as of December 31, 2011 and 2010 is as follows:
2011 2010
Average
Forward
Exchange
Rate
Notional
Amount
in Local
Currency
Fair Value of
Instruments
in USD
Average
Forward
Exchange
Rate
Notional
Amount
in Local
Currency
Fair Value of
Instruments
in USD
(1) (2) (1) (2)
Currencies:
British Pound (GBP/USD) ..... 1.552 9,795 $ 6 1.590 11,125 $ (62)
Euro (Euro/USD) ........... 1.318 1,940 42 1.336 3,748 (22)
Canadian Dollar (USD/CAD) . . . 1.022 3,202 (9) 1.004 3,274 (31)
Mexican Peso (USD/MXP) .... 13.933 5,665 1 12.498 29,176 (17)
Total fair value of
instruments in USD ..... $40 $(132)
(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. Any adverse changes in interest rates or
securities prices may decrease the value of our investments and operating results. As of December 31, 2011,
our excess cash was invested only in money market funds. At December 31, 2010, we did not hold any cash
equivalents.
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.
39