eFax 2012 Annual Report Download - page 45
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Historically, we have not hedged translation risks because cash flows from international operations were generally reinvested locally; however, we may do so in the
future. Our objective in managing foreign exchange risk is to minimize the potential exposure to changes that exchange rates might have on earnings, cash flows and financial
position.
Foreign exchange gains and (losses) were not material to our earnings in 2012, 2011 or 2010. For the years ended December 31, 2012
, 2011 and 2010, net foreign
currency transaction gain/(loss) amounted to $0 .1 million, zero and $0.2 million, respectively. During the year ended December 31, 2012
and 2011, cumulative translation
adjustments included in other comprehensive income amounted to $1.4 million and $(0.8) million, respectively.
We currently do not have derivative financial instruments for hedging, speculative or trading purposes and therefore are not subject to such hedging risk. However, we
may in the future engage in hedging transactions to manage our exposure to fluctuations in foreign currency exchange rates.
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