Seagate 2004 Annual Report Download - page 65

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Table of Contents
As of July 1, 2005, our notional fair values of foreign exchange forward contracts totaled $63 million. We do not believe that these
derivatives present significant credit risks, because the counterparties to the derivatives consist of major financial institutions, and we manage
the notional amount of contracts entered into with any one counterparty. We maintain settlement and revaluation limits as well as maximum
tenor of contracts based on the credit rating of the financial institutions. We do not enter derivative financial instruments for speculative or
trading purposes. The table below provides information as of July 1, 2005 about our derivative financial instruments, comprised of foreign
currency forward exchange contracts. The table is provided in U.S. dollar equivalent amounts and presents the notional amounts (at the contract
exchange rates) and the weighted average contractual foreign currency exchange rates.
62
(In millions, except average contract rate)
Notional
Amount
Average
Contract
Rate
Estimated
Fair
Value
Foreign currency forward exchange contracts:
Thai baht
$
41
40.16
$
(1
)
Singapore dollar
12
1.67
$
—
British pounds
10
1.83
—
$
63
$
(1
)