CA (CA)

We conduct business on a worldwide basis through subsidiaries in 46 countries and, as such, a portion of our revenues, earnings, and net investments in foreign affiliates is exposed to changes in foreign exchange rates. We seek to manage our foreign exchange risk in part through operational means, including managing expected local currency revenues in relation to local currency costs and local currency assets in relation to local currency liabilities. In October 2005, the Board of Directors adopted our Risk Management Policy and Procedures, which authorizes us to manage, based on management’s assessment, our risks and exposures to foreign currency exchange rates through the use of derivative financial instruments (e.g., forward contracts, options, swaps) or other means. We only use derivative financial instruments in the context of hedging and do not use them for speculative purposes.

 

Derivatives are accounted for in accordance with SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (SFAS No. 133). During fiscal 2009 and 2008, we did not designate our foreign exchange derivatives as hedges under SFAS No. 133. Accordingly, all foreign exchange derivatives are recognized on the balance sheet at fair value and unrealized or realized changes in fair value from these contracts are recorded as “Other (gains) expenses, net” in our Consolidated Statements of Operations. Refer to Note 4, “Derivatives and Fair Value Measurements,” for additional information regarding our derivative activities.

 

Our Consolidated Financial Statements are listed in the List of Consolidated Financial Statements and Financial Statement Schedules filed as part of this Annual Report on Form 10-K and are incorporated herein by reference.

 

The Supplementary Data specified by Item 302 of Regulation S-K as it relates to selected quarterly data is included in the “Selected Quarterly Information” section of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Information on the effects of changing prices is not required.

 

Not applicable.

 

We conduct business on a worldwide basis through subsidiaries in
46 countries and, as such, a portion of our revenues, earnings,
and net investments in foreign affiliates is exposed to changes
in foreign exchange rates. We seek to manage our foreign
exchange risk in part through operational means, including
managing expected local currency revenues in relation to local
currency costs and local currency assets in relation to local
currency liabilities. In October 2005, the Board of Directors
adopted our Risk Management Policy and Procedures, which
authorizes us to manage, based on management’s assessment,
our risks and exposures to foreign currency exchange rates
through the use of derivative financial instruments (e.g.,
forward contracts, options, swaps) or other means. We only use
derivative financial instruments in the context of hedging and
do not use them for speculative purposes.

 

Derivatives are accounted for in accordance with
SFAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities”
(SFAS No. 133). During fiscal 2009 and 2008, we
did not designate our foreign exchange derivatives as hedges
under SFAS No. 133. Accordingly, all foreign exchange
derivatives are recognized on the balance sheet at fair value
and unrealized or realized changes in fair value from these
contracts are recorded as “Other (gains) expenses,
net” in our Consolidated Statements of Operations. Refer to
Note 4, “Derivatives and Fair Value
Measurements,” for additional information regarding our
derivative activities.

 

Our Consolidated Financial Statements are listed in the List of
Consolidated Financial Statements and Financial Statement
Schedules filed as part of this Annual Report on
Form 10-K
and are incorporated herein by reference.

 

The Supplementary Data specified by Item 302 of
Regulation S-K
as it relates to selected quarterly data is included in the
“Selected Quarterly Information” section of
Item 7, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.” Information
on the effects of changing prices is not required.

 

Not applicable.

 

We conduct business on a worldwide basis through subsidiaries in 46 countries and, as such, a portion of our revenues, earnings, and net investments in foreign affiliates is exposed to changes in foreign exchange rates. We seek to manage our foreign exchange risk in part through operational means, including managing expected local currency revenues in relation to local currency costs and local currency assets in relation to local currency liabilities. In October 2005, the Board of Directors adopted our Risk Management Policy and Procedures, which authorizes us to manage, based on management’s assessment, our risks and exposures to foreign currency exchange rates through the use of derivative financial instruments (e.g., forward contracts, options, swaps) or other means. We have not historically used, and do not anticipate using, derivative financial instruments for speculative purposes.

 

Derivatives are accounted for in accordance with SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (SFAS No. 133). As of March 31, 2008, we had no outstanding derivative contracts in place. We recognized a loss of $6 million, associated with derivative contracts that were closed, as of March 31, 2008 and settled in April 2008. For all derivative contracts that were entered into during fiscal 2008, the Company recognized a loss of $14 million. These contracts did not qualify for hedge accounting treatment under SFAS No. 133. These results are included in the “Other expenses (gains), net” line item of the Consolidated Statement of Operations for fiscal 2008. In April and May 2008, we entered into a series of derivative contracts to protect the Company against the risks associated with movements in foreign exchange rates on the balance sheet and expected operating exposures throughout fiscal 2009. We anticipate that we will continue to employ derivatives to protect the Company against these risks as the size of the balance sheet and expected operating exposures change throughout the fiscal year.

 

We conduct business on a worldwide basis through subsidiaries in
46 countries and, as such, a portion of our revenues, earnings,
and net investments in foreign affiliates is exposed to changes
in foreign exchange rates. We seek to manage our foreign
exchange risk in part through operational means, including
managing expected local currency revenues in relation to local
currency costs and local currency assets in relation to local
currency liabilities. In October 2005, the Board of Directors
adopted our Risk Management Policy and Procedures, which
authorizes us to manage, based on management’s assessment,
our risks and exposures to foreign currency exchange rates
through the use of derivative financial instruments (e.g.,
forward contracts, options, swaps) or other means. We have not
historically used, and do not anticipate using, derivative
financial instruments for speculative purposes.

 

Derivatives are accounted for in accordance with
SFAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities” (SFAS
No. 133). As of March 31, 2008, we had no outstanding
derivative contracts in place. We recognized a loss of
$6 million, associated with derivative contracts that were
closed, as of March 31, 2008 and settled in April 2008. For
all derivative contracts that were entered into during fiscal
2008, the Company recognized a loss of $14 million. These
contracts did not qualify for hedge accounting treatment under
SFAS No. 133. These results are included in the “Other
expenses (gains), net” line item of the Consolidated
Statement of Operations for fiscal 2008. In April and May 2008,
we entered into a series of derivative contracts to protect the
Company against the risks associated with movements in foreign
exchange rates on the balance sheet and expected operating
exposures throughout fiscal 2009. We anticipate that we will
continue to employ derivatives to protect the Company against
these risks as the size of the balance sheet and expected
operating exposures change throughout the fiscal year.

 

We conduct business on a worldwide basis through subsidiaries in 46 countries and, as such, a portion of our revenues, earnings, and net investments in foreign affiliates are exposed to changes in foreign exchange rates. We seek to manage our foreign exchange risk in part through operational means, including managing expected local currency revenues in relation to local currency costs and local currency assets in relation to local currency liabilities. In October 2005, the Board of Directors adopted our Risk Management Policy and Procedures, which authorizes us to manage, based on management’s assessment, our risks and exposures to foreign currency exchange rates through the use of derivative financial instruments (e.g., forward contracts, options, swaps) or other means. We have not historically used, and do not anticipate using, derivative financial instruments for speculative purposes.

 

Derivatives are accounted for in accordance with Statement of Financial Accounting Standards (SFAS) No. 133, “Accounting for Derivative Instruments and Hedging Activities” (FAS 133). For the fiscal year ended March 31, 2007, we entered into derivative contracts with a total notional value of approximately 208 million euros and 2.5 billion yen, of which 75 million euros were outstanding as of March 31, 2007. We entered into these contracts with the intent of mitigating a certain portion of our euro and yen operating exposure as part of the Company’s on-going risk management program. These contracts did not

 

We conduct business on a worldwide basis through subsidiaries in 46 countries and, as such, a portion of our revenues, earnings, and net investments in foreign affiliates are exposed to changes in foreign exchange rates. We seek to manage our foreign exchange risk in part through operational means, including managing expected local currency revenues in relation to local currency costs and local currency assets in relation to local currency liabilities. In October 2005, the Board of Directors adopted the Risk Management Policy and Procedures (the Policy), which authorizes us to manage, based on management’s assessment, our risks/exposures to foreign currency exchange rates through the use of derivative financial instruments (e.g., forward contracts, options, swaps) or other means. We have not historically used, and do not anticipate using, derivative financial instruments for speculative purposes.

 

Derivatives are accounted for in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and the Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“SFAS No. 133”). For the fiscal year ended March 31, 2006, we entered into derivative contracts with a total notional value of 280 million euros. Derivatives with a notional value of 80 million euros were entered into with the intent of mitigating a certain portion of our euro operating exposure and are part of the Company’s on-going risk management program. Derivatives with a notional value of 200 million euros were entered into during March 2006 with the intent of mitigating a certain portion of the foreign exchange variability associated with the Company’s repatriation of approximately $584 million from its foreign subsidiaries. Hedge accounting under SFAS No. 133 was not applied to any of the derivatives entered into during the fiscal year ended March 31, 2006. The resulting gain of approximately $1 million for the fiscal year ended March 31, 2006 is included in the “Other (gains) expenses, net” line in the Consolidated Statement of Operations. As of March 31, 2006, there were no derivative contracts outstanding. In April 2006, the Company entered into similar derivative contracts as those entered during the quarter ended March 31, 2006 relating to the Company’s operating exposures.

 

 

We conduct business on a worldwide basis through subsidiaries in 48 countries and, as such, a portion of our revenues, earnings, and net investments in foreign affiliates are exposed to changes in foreign exchange rates. We seek to manage our foreign exchange risk in part through operational means, including managing expected local currency revenues in relation to local currency costs and local currency assets in relation to local currency liabilities. In October 2005, the Board of Directors adopted the Risk Management Policy and Procedures (the Policy), which authorizes us to manage, based on management’s assessment, our risks/exposures to foreign currency exchange rates through the use of derivative financial instruments (e.g., forward contracts, options, swaps) or other means. We have not historically used, and do not anticipate using, derivative financial instruments for speculative purposes.

 

Derivatives are accounted for in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and the Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“SFAS 133”). For the fiscal year ended March 31, 2006, we entered into derivative contracts with a total notional value of 280 million euros. Derivatives with a notional value of 80 million euros were entered into with the intent of mitigating a certain portion of our euro operating exposure and are part of the Company’s on-going risk management program. Derivatives with a notional value of 200 million euros were entered into during March 2006 with the intent of mitigating a certain portion of the foreign exchange variability associated with the Company’s repatriation of approximately $584 million from its foreign subsidiaries. Hedge accounting under SFAS 133 was not applied to any of the derivatives entered into during the fiscal year ended March 31, 2006. The resulting gain of approximately $1 million for the fiscal year ended March 31, 2006 is included in the “Other (gains) expenses, net” line on the Unaudited Consolidated Statement of Operations. As of March 31, 2006, there were no derivative contracts outstanding. In April 2006, the Company entered into similar derivative contracts as those entered during the quarter ended March 31, 2006 relating to the Company’s operating exposures.