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This excerpt taken from the ELN 20-F filed Feb 28, 2008. Exchange
Risk
We are a multinational business operating in a number of
countries, and the U.S. dollar is the primary currency in
which we conduct business. The U.S. dollar is used for
planning and budgetary purposes and as the presentation currency
for financial reporting. We do, however, have revenues, costs,
assets and liabilities denominated in currencies other than
U.S. dollars. Consequently, we enter into derivative
financial instruments to manage our
non-U.S. dollar
foreign exchange risk. We use derivative financial instruments
primarily to reduce exposures to market fluctuations in foreign
exchange rates. We do not enter into derivative financial
instruments for trading or speculative purposes. All derivative
contracts entered into are in liquid markets with
credit-approved parties. The treasury function operates within
strict terms of reference that have been approved by our board
of directors.
The U.S. dollar is the base currency against which all
identified transactional foreign exchange exposures are managed
and hedged. The principal risks to which we are exposed are
movements in the exchange rates of the U.S. dollar against
the Euro, Sterling and Japanese Yen. The main exposures are net
costs in Euro arising from a manufacturing and research presence
in Ireland and the sourcing of raw materials in European markets.
We had entered into a number of Euro forward foreign exchange
contracts at various rates of exchange that required us to sell
U.S. dollars for Euro on various dates. The forward
contracts expired on various dates throughout 2007. There were
no forward or swap contracts outstanding at December 31,
2007.
During 2007, average exchange rates were $1.37 = €1.00. We
sell U.S. dollars to buy Euro for costs incurred in Euro.
This excerpt taken from the ELN 6-K filed Mar 30, 2007. Exchange
Risk
We are a multinational business operating in a number of
countries and the US dollar is the primary currency in which we
conduct business. The US dollar is used for planning and
budgetary purposes and as the presentation currency for
financial reporting. We do, however, have revenues, costs,
assets and liabilities denominated in currencies other than US
dollars. Consequently, we enter into derivative financial
instruments to manage our non-US dollar foreign exchange risk.
We use derivative financial instruments primarily to reduce
exposures to market fluctuations in foreign exchange rates. We
do not enter into derivative financial instruments for trading
or speculative purposes. All derivative contracts entered into
are in liquid markets with credit-approved parties. The treasury
function operates within strict terms of reference that have
been approved by our board of directors.
46 Elan
Corporation, plc 2006 Annual Report
Table of Contents
Financial Review
The US dollar is the base currency against which all identified
transactional foreign exchange exposures are managed and hedged.
The principal risks to which we are exposed are movements in the
exchange rates of the US dollar against the Euro, Sterling and
Japanese Yen. The main exposures are net costs in Euro arising
from a manufacturing and research presence in Ireland and the
sourcing of raw materials in European markets.
At 31 December 2006, we had entered into a number of
forward foreign exchange contracts at various rates of exchange
in the normal course of business. The nominal value of forward
foreign exchange contracts to sell US dollars for Euro at
31 December 2006 had a total contract amount of
$68.0 million (2005: $77.0 million) and these
contracts had a fair value gain of $2.7 million (2005:
$1.7 million loss). These contracts all expire on various
dates through September 2007.
During 2006, average exchange rates were $1.25 = €1.00. We
sell US dollars to buy Euro for costs incurred in Euro.
For additional information regarding foreign exchange risk,
please refer to Note 27 to the Consolidated Financial
Statements.
This excerpt taken from the ELN 20-F filed Feb 28, 2007. Exchange
Risk
We are a multinational business operating in a number of
countries and the US dollar is the primary currency in which we
conduct business. The US dollar is used for planning and
budgetary purposes and as the presentation currency for
financial reporting. We do, however, have revenues, costs,
assets and liabilities denominated in currencies other than US
dollars. Consequently, we enter into derivative financial
instruments to manage our non-US dollar foreign exchange risk.
We use derivative financial instruments primarily to reduce
exposures to market fluctuations in foreign exchange rates. We
do not enter into derivative financial instruments for trading
or speculative purposes. All derivative contracts entered into
are in liquid markets with credit-approved parties. The treasury
function operates within strict terms of reference that have
been approved by our board of directors.
Table of Contents
The US dollar is the base currency against which all identified
transactional foreign exchange exposures are managed and hedged.
The principal risks to which we are exposed are movements in the
exchange rates of the US dollar against the Euro, Sterling and
Japanese Yen. The main exposures are net costs in Euro arising
from a manufacturing and research presence in Ireland and the
sourcing of raw materials in European markets.
At December 31, 2006, we had entered into a number of
forward foreign exchange contracts at various rates of exchange
in the normal course of business. The nominal value of forward
foreign exchange contracts to sell US dollars for Euro at
December 31, 2006 had a total contract amount of
$68.0 million (2005: $77.0 million) and these
contracts had a fair value gain of $2.7 million (2005:
$1.7 million loss). These contracts all expire on various
dates through September 2007.
During 2006, average exchange rates were $1.25 = €1.00. We
sell US dollars to buy Euro for costs incurred in Euro.
This excerpt taken from the ELN 6-K filed Mar 31, 2006. Exchange Risk
We are a multinational business operating in a number of
countries and the U.S. dollar is the primary currency in
which we conduct business. The U.S. dollar is used for
planning and budgetary purposes and as the presentation currency
for financial reporting. We do, however, have revenues, costs,
assets and liabilities denominated in currencies other than
U.S. dollars. Consequently, we enter into derivative
financial instruments to manage our
non-U.S. dollar
foreign exchange risk. We use derivative financial instruments
primarily to reduce exposures to market fluctuations in foreign
exchange rates. We do not enter into derivative financial
instruments for trading or speculative purposes. All derivative
contracts entered into are in liquid markets with
credit-approved parties. The treasury function operates within
strict terms of reference that have been approved by our board
of directors.
52 Elan Corporation, plc 2005 Annual Report
Table of Contents
This excerpt taken from the ELN 20-F filed Mar 30, 2006. Exchange
Risk
We are a multinational business operating in a number of
countries and the U.S. dollar is the primary currency in which
we conduct business. The U.S. dollar is used for planning
and budgetary purposes and as the presentation currency for
financial reporting. We do, however, have revenues, costs,
assets and liabilities denominated in currencies other than
U.S. dollars. Consequently, we enter into derivative
financial instruments to manage our
non-U.S. dollar
foreign exchange risk. We use derivative financial instruments
primarily to reduce exposures to market fluctuations in foreign
exchange rates. We do not enter into derivative financial
instruments for trading or speculative purposes. All derivative
contracts entered into are in liquid markets with
credit-approved parties. The treasury function operates within
strict terms of reference that have been approved by our board
of directors.
The U.S. dollar is the base currency against which all
identified transactional foreign exchange exposures are managed
and hedged. The principal risks to which we are exposed are
movements in the exchange rates of the U.S. dollar against
the Euro, Sterling and Japanese Yen. The main exposures are net
costs in Euro arising from a manufacturing and research presence
in Ireland and the sourcing of raw materials in European markets.
At December 31, 2005, we had entered into a number of
forward foreign exchange contracts at various rates of exchange
in the normal course of business. The nominal value of forward
foreign exchange contracts to sell U.S. dollars for Euro at
December 31, 2005 had a total contract amount of
$77.0 million (2004: $9.0 million) and these contracts
had a fair value loss of $1.7 million (2004:
$1.2 million gain). These contracts all expire on various
dates through December 2006. The forward foreign exchange
contracts to sell Japanese Yen for U.S. dollars at
December 31, 2005 had a total contract amount of $Nil
(2004: $9.4 million) and these contracts had a fair value
loss of $Nil (2004: $0.4 million).
During 2005, average exchange rates were $1.25 = EUR1. We sell
U.S. dollars to buy Euro for costs incurred in Euro.
This excerpt taken from the ELN 6-K filed Apr 11, 2005. Exchange Risk We are a multinational business operating in many countries. The U.S. dollar is the primary currency in which we conduct business. The U.S. dollar is used for planning and budgetary purposes and as the currency for financial reporting. We have revenues, costs, assets and liabilities denominated in currencies other than U.S. dollars. We manage our non-U.S. dollar foreign exchange risk through derivative financial instruments. We use derivative financial instruments primarily to reduce exposures to market fluctuations in foreign exchange rates. We do not enter into derivative financial instruments for trading or speculative purposes. The treasury function operates within strict terms of reference that have been approved by our board of directors. The U.S. dollar is the base currency against which all identified transactional foreign exchange exposures are managed and hedged. The principal risks to which we are exposed are movements in the exchange rates of the U.S. dollar against the Euro, Sterling and Japanese Yen. The main exposures are net costs in Euro arising from a manufacturing and research presence in Ireland and the sourcing of raw materials in European markets. At 31 December 2004, we had entered into a number of forward foreign exchange contracts at various rates of exchange in the normal course of business. During 2004, average exchange rates were $1.24 = EUR1. We sell U.S. dollars to buy Euro for costs incurred in Euro. The recent strengthening of the Euro against the U.S. dollar will result in higher reported costs related to our Euro cost base in 2004 compared to 2003. For additional information regarding foreign exchange risk, please refer to Note 21 to the Consolidated Financial Statements. | EXCERPTS ON THIS PAGE:
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