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This excerpt taken from the EBAY 10-Q filed Oct 29, 2007. Foreign
Exchange Hedging Policy
We are a growing company, with an increasing proportion of our
operations outside the U.S. Accordingly, our foreign
currency exposures have increased substantially and are expected
to continue to grow. The objective of our foreign exchange
exposure management program is to identify material foreign
currency exposures and to manage these exposures to minimize the
potential effects of currency fluctuations on our reported cash
flow and results of operations.
Our primary foreign currency exposures are transaction, economic
and translation:
Transaction Exposure: Around the world, we
have certain assets and liabilities, primarily receivables,
investments and accounts payable (including inter-company
transactions), that are denominated in currencies other than the
relevant entity’s functional currency. In certain
circumstances, changes in the functional currency value of these
assets and liabilities create fluctuations in our reported
consolidated financial position, results of operations and cash
flows. We may enter into foreign exchange contracts to minimize
the short-term foreign currency fluctuations on such assets and
liabilities. The gains and losses on the foreign exchange
contracts offset the transaction gains and losses on certain
foreign currency receivables, investments and payables, all of
which are recognized in interest and other income, net.
Economic Exposure: We also have anticipated
future cash flows, including revenues and expenses, denominated
in currencies other than the relevant entity’s functional
currency. Our primary economic exposures include future royalty
receivables, customer fees, and vendor payments. Changes in the
relevant entity’s functional currency value will cause
fluctuations in the cash flows we expect to receive when these
cash flows are realized or settled. We may enter into foreign
exchange contracts to hedge the value of a portion of these cash
flows. We account for these foreign exchange contracts as cash
flow hedges. The effective portion of the derivative’s gain
or loss is initially reported as a component of accumulated
other comprehensive income (loss) and subsequently reclassified
into earnings when the transaction is settled.
Earnings Translation Exposure: As our
international operations grow, fluctuations in the foreign
currencies create volatility in our reported results of
operations because we are required to consolidate the results of
operations of our foreign denominated subsidiaries. We may
decide to purchase foreign exchange contracts to offset the
earnings impact of currency fluctuations. Such contracts will be
marked-to-market on a monthly basis and any unrealized gain or
loss will be recorded in interest and other income, net.
Table of Contents
This excerpt taken from the EBAY 10-Q filed Jul 27, 2007. Foreign
Exchange Hedging Policy
We are a growing company, with an increasing proportion of our
operations outside the U.S. Accordingly, our foreign
currency exposures have increased substantially and are expected
to continue to grow. The objective of our foreign exchange
exposure management program is to identify material foreign
currency exposures and to manage these exposures to minimize the
potential effects of currency fluctuations on our reported cash
flow and results of operations.
Our primary foreign currency exposures are transaction, economic
and translation:
Transaction Exposure: Around the world, we
have certain assets and liabilities, primarily receivables,
investments and accounts payable (including inter-company
transactions), that are denominated in currencies other than the
relevant entity’s functional currency. In certain
circumstances, changes in the functional currency value of these
assets and liabilities create fluctuations in our reported
consolidated financial position, results of operations and cash
flows. We may enter into foreign exchange contracts to minimize
the short-term foreign currency fluctuations on such assets and
liabilities. The gains and losses on the foreign exchange
contracts offset the transaction gains and losses on certain
foreign currency receivables, investments and payables, all of
which are recognized in interest and other income, net.
Economic Exposure: We also have anticipated
future cash flows, including revenues and expenses, denominated
in currencies other than the relevant entity’s functional
currency. Our primary economic exposures include future royalty
receivables, customer fees, and vendor payments. Changes in the
relevant entity’s functional currency value will cause
fluctuations in the cash flows we expect to receive when these
cash flows are realized or settled. We may enter into foreign
exchange contracts to hedge the value of a portion of these cash
flows. We account for these foreign exchange contracts as cash
flow hedges. The effective portion of the derivative’s gain
or loss is initially reported as a component of accumulated
other comprehensive income (loss) and subsequently reclassified
into earnings when the transaction is settled.
Earnings Translation Exposure: As our
international operations grow, fluctuations in the foreign
currencies create volatility in our reported results of
operations because we are required to consolidate the results of
operations of our foreign denominated subsidiaries. We may
decide to purchase foreign exchange contracts to offset the
earnings impact of currency fluctuations. Such contracts will be
marked-to-market on a monthly basis and any unrealized gain or
loss will be recorded in interest and other income, net.
This excerpt taken from the EBAY 10-Q filed Apr 25, 2007. Foreign
Exchange Hedging Policy
We are a growing company, with an increasing proportion of our
operations outside the U.S. Accordingly, our foreign
currency exposures have increased substantially and are expected
to continue to grow. The objective of our foreign exchange
exposure management program is to identify material foreign
currency exposures and to manage these exposures to minimize the
potential effects of currency fluctuations on our reported cash
flow and results of operations.
Our primary foreign currency exposures are transaction, economic
and translation:
Transaction Exposure: Around the world, we
have certain assets and liabilities, primarily receivables,
investments and accounts payable (including inter-company
transactions), that are denominated in currencies other than the
relevant entity’s functional currency. In certain
circumstances, changes in the functional currency value of these
assets and liabilities create fluctuations in our reported
consolidated financial position, results of operations and cash
flows. We may enter into foreign exchange contracts to minimize
the short-term foreign currency fluctuations on such assets and
liabilities. The gains and losses on the foreign exchange
contracts offset the transaction gains and losses on certain
foreign currency receivables, investments and payables, all of
which are recognized in interest and other income, net.
Economic Exposure: We also have anticipated
future cash flows, including revenues and expenses, denominated
in currencies other than the relevant entity’s functional
currency. Our primary economic exposures include future royalty
receivables, customer collections, and vendor payments. Changes
in the relevant entity’s functional currency value will
cause fluctuations in the cash flows we expect to receive when
these cash flows are realized or settled. We may enter into
foreign exchange contracts to hedge the value of a portion of
these cash flows. We account for these foreign exchange
contracts as cash flow hedges. The effective portion of the
derivative’s gain or loss is initially reported as a
component of accumulated other comprehensive income (loss) and
subsequently reclassified into earnings when the transaction is
settled.
Earnings Translation Exposure: As our
international operations grow, fluctuations in the foreign
currencies create volatility in our reported results of
operations because we are required to consolidate the results of
operations of our foreign denominated subsidiaries. We may
decide to purchase foreign exchange contracts to offset the
earnings impact of currency fluctuations. Such contracts will be
marked-to-market
on a monthly basis and any unrealized gain or loss will be
recorded in interest and other income, net.
Table of Contents
This excerpt taken from the EBAY 10-Q filed Jul 28, 2006. Foreign
Exchange Hedging Policy
We are a rapidly growing company, with an increasing proportion
of our operations outside the United States. Accordingly, our
foreign currency exposures have increased substantially and are
expected to continue to grow. The objective of our foreign
exchange exposure management program is to identify material
foreign currency exposures and to manage these exposures to
minimize the potential effects of currency fluctuations on our
reported condensed consolidated cash flow, and results of
operations.
Our primary foreign currency exposures are transaction, economic
and translation:
Transaction Exposure: Around the world, we
have certain assets and liabilities, primarily receivables,
investments and accounts payable (including inter-company
transactions) that are denominated in currencies other than the
relevant entity’s functional currency. In certain
circumstances, changes in the functional currency value of these
assets and liabilities create fluctuations in our reported
consolidated financial position, results of operations and cash
flows. We may enter into foreign exchange forward contracts or
other instruments to minimize the short-term foreign currency
fluctuations on such assets and liabilities. The gains and
losses on the foreign exchange forward contracts offset the
transaction gains and losses on certain foreign currency
receivables, investments and payables recognized in earnings.
Table of Contents
Economic Exposure: We also have anticipated
and unrecognized future cash flows, including revenues and
expenses, denominated in currencies other than the relevant
entity’s functional currency. Our primary economic
exposures include future royalty receivables, customer
collections, and vendor payments. Changes in the relevant
entity’s functional currency value will cause fluctuations
in the cash flows we expect to receive when these cash flows are
realized or settled. We may enter into foreign exchange forward
contracts or other derivatives to hedge the value of a portion
of these cash flows. We account for these foreign exchange
contracts as cash flow hedges. The effective portion of the
derivative’s gain or loss is initially reported as a
component of accumulated other comprehensive income (loss) and
subsequently reclassified into earnings when the transaction is
settled.
Earnings Translation Exposure: As our
international operations grow, fluctuations in the foreign
currencies create volatility in our reported results of
operations because we are required to consolidate the results of
operations of our foreign denominated subsidiaries. We may
decide to purchase forward exchange contracts or other
instruments to offset the earnings impact of currency
fluctuations. Such contracts will be
marked-to-market
on a monthly basis and any unrealized gain or loss will be
recorded in interest and other income, net.
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