Plantronics 2010 Annual Report Download - page 57

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49
The table below presents the impact on the foreign exchange gain (loss) of a hypothetical 10% appreciation and a 10% depreciation of
the U.S. Dollar (“USD”) against the forward currency contracts as of March 31, 2010 (in millions):
Foreign Foreign
USD Value of Exchange Gain Exchange (Loss)
Net Foreign From 10% From 10%
Exchange Appreciation Depreciation
Currency - forward contracts Position Contracts of USD of USD
Euro Sell Euro $ 24.3 $ 2.4 $ (2.4)
eat Britain Pound Sell GBP 3.0 0.3 (0.3) Gr
Net position $ 27.3 $ 2.7 $ (2.7)
Cash Flow Hedges
Approximately 38%, 37% and 38% of net revenue from continuing operations in fiscal 2008, 2009 and 2010, respectively, was
erived from sales outside of the U.S., which wed re predominantly denominated in the Euro and the Great Britain Pound in each of the
n Euros and Great Britain Pounds, respectively. As of March 31, 2010, we also had foreign currency put option
ts of approximately €40.2 million and £10.8 million denominated in Euros and Great Britain Pounds,
option contracts hedge against a portion of our forecasted foreign currency denominated sales. If these
et exposed currency positions are subjected to either a 10% appreciation or 10% depreciation versus the U.S. Dollar, we could incur a
010 (in millions):
fiscal years.
As of March 31, 2010, we had foreign currency call option contracts with notional amounts of approximately €40.2 million and £10.8
illion denominated im
contracts with notional amoun
respectively. Collectively, our
n
gain of $5.8 million or a loss of $5.0 million.
The table below presents the impact on the Black-Scholes valuation of our currency option contracts of a hypothetical 10%
appreciation and a 10% depreciation of the U.S. Dollar against the indicated option contract type for cash flow hedges as of March 31,
2
Foreign Foreign
USD Value of Exchange Gain Exchange (Loss)
Net Foreign From 10% From 10%
Exchange Appreciation Depreciation
Currency - option contracts Contracts of USD of USD
Call options $ (76.7) $ 0.6 $ (2.6)
Put options 71.4 5.2 (2.4)
Net position $ (5.3) $ 5.8 $ (5.0)
As of March 31, 2010, we had foreign currency swap contracts with notional amounts of approximately Mex$251.3 million and $19.6
million denominated in Mexican Peso and U.S. Dollars, respectively. Our cross-currency swap contracts hedge against a portion of
our forecasted Mexican Peso denominated expenditures. If these net exposed currency positions are subjected to either a 10%
appreciation or 10% depreciation versus the U.S. Dollar, we could incur a loss of $1.8 million and a gain of $2.2 million, respectively.
The table below presents the impact on the net present valuation of our cross-currency swap contracts of a hypothetical 10%
appreciation and a 10% depreciation of the U.S. Dollar (“USD”) as of March 31, 2010 (in millions):
Foreign Foreign
USD Value of Exchange (Loss) Exchange Gain
Cross-Currency From 10% From 10%
Swap Appreciation Depreciation
Currency - cross-currency swap contracts Contracts of USD of USD
Positon: Buy Peso $ 19.6 $ (1.8) $ 2.2