Supercuts 2009 Annual Report Download - page 76

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Table of Contents
maturation dates of June and August 2009. The purpose of the forward contracts is to protect against adverse movements in the Euro exchange
rate. The contracts were designated and are effective as cash flow hedges of Euro denominated foreign currency firm commitments. These cash
flow hedges were recorded at fair value within other current assets in the Consolidated Balance Sheet, with a corresponding offset in other
comprehensive income within shareholders' equity.
The table below provides information about the Company's forecasted sales transactions in U.S. dollar equivalents. (The information is
presented in U.S. dollars because that is the Company's reporting currency.) The table summarizes information on transactions that are sensitive
to foreign currency exchange rates and the related foreign currency forward exchange agreements. For the foreign currency forward exchange
agreements, the table presents the notional amounts and weighted average exchange rates by expected (contractual) maturity dates. These
notional amounts generally are used to calculate the contractual payments to be exchanged under the contract.
74
Expected Transaction date June 30,
June 30,
2009
Fair
Value
2010 2011 2012 2013 Total
Forecasted Transactions
(U.S.$ equivalent in thousands)
Inventory shipments to Canadian salons (U.S.$)
$
4,684
$
—
$
—
$
—
$
4,684
$
374
Business travel to European countries (U.S.$)
381
—
—
—
381
6
Foreign currency denominated intercompany assets and liabilities
(U.S.$)
77,736
1,763
6,386
639
86,524
1,163
Total contracts
$
82,801
$
1,763
$
6,386
$
639
$
91,589
$
1,543
Average contractual exchange rate
0.79315
0.71185
0.71185
0.71185
0.71185