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This excerpt taken from the LUX 20-F filed Jun 25, 2009. Economic Risk. A
strengthening of the Euro relative to other currencies in which we receive
revenues could negatively impact the demand for our products manufactured in
Italy and/or reduce our gross margins. However, our newly acquired Oakley
manufacturing facilities in the U.S. have offset these reduced margins as we
expand Oakley’s sales in Euro-denominated countries. We expect that the weakening of the Euro will
have the reverse effect. In addition, to
the extent that our receivables and payables are denominated in different
currencies, exchange rate fluctuations could further impact our
89
reported results of operations. However, our production cycles are relatively short and our receivables and payables are generally short-term in nature. As a result, we do not believe that we currently have significant exposure in this area. We will, if we believe it is necessary, enter into foreign exchange contracts to hedge certain of these transactions, which could include sales, receivables and/or payables balances.
Effective January 1, 2001, we adopted SFAS No. 133, as amended and interpreted, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. SFAS 133 requires that all derivatives, whether designated as a hedging relationship or not, be recorded on the balance sheet at fair value regardless of the purpose or intent for holding them. If a derivative is designated as a fair-value hedge, changes in the fair value of the derivative and the related change in the hedge item are recognized in operations. If a derivative is designated as a cash-flow hedge, changes in the fair value of the derivative are recorded in other comprehensive income in the consolidated statement of stockholders’ equity and are recognized in the consolidated statements of income when the hedged item affects operations. For a derivative that does not qualify as a hedge, changes in fair value are recognized in operations.
From time to time, we use derivative financial instruments, principally currency forward agreements, as part of our risk management policy to reduce our exposure to market risks from changes in foreign exchange rates. As of December 31, 2008, we had several currency forward derivatives and option structures replicating forward contracts (zero cost collar) with a maturity no longer than 180 days. We may enter into other foreign exchange derivative financial instruments when we assess that the risk can be hedged effectively.
This excerpt taken from the LUX 20-F filed Jun 26, 2008. Economic Risk. A strengthening of the Euro relative to other
currencies in which we receive revenues could negatively impact the demand for
our products manufactured in Italy and/or reduce our gross margins. However, we
expect that our newly acquired Oakley manufacturing facilities in the U.S. will
offset these reduced margins as we expand Oakley’s sales in Euro-denominated
countries. We expect that the weakening
of the Euro will have the reverse effect.
In addition, to the extent that our receivables and payables are
denominated in different currencies, exchange rate fluctuations could further
impact our reported results of operations. However, our production cycles are
relatively short and our receivables and payables are generally short-term in
nature. As a result, we do not believe that we currently have significant
exposure in this area. We will, if we believe it is necessary, enter into
foreign exchange contracts to hedge certain of these transactions, which could
include sales, receivables and/or payables balances.
Effective January 1, 2001, we adopted SFAS 133, as amended and interpreted, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. SFAS 133 requires that all derivatives, whether designated as a hedging relationship or not, be recorded on the balance sheet at fair value regardless of the purpose or intent for holding them. If a derivative is designated as a fair-value hedge, changes in the fair value of the derivative and the related change in the hedge item are recognized in operations. If a derivative is designated as a cash-flow hedge, changes in the fair value of the derivative are recorded in other comprehensive income (“OCI”) in the consolidated statement of shareholders’ equity and are recognized in the consolidated statements of income when the hedged item affects operations. For a derivative that does not qualify as a hedge, changes in fair value are recognized in operations.
From time to time, we use derivative financial instruments, principally currency forward agreements, as part of our risk management policy to reduce our exposure to market risks from changes in foreign exchange rates. As of December 31, 2007, we had several currency forward derivatives and option structures replicating forward contracts (zero cost collar) with a maturity no longer than 120 days. We may enter into other foreign exchange derivative financial instruments when we assess that the risk can be hedged effectively.
This excerpt taken from the LUX 20-F filed Jun 29, 2007. Economic
Risk. A strengthening
of the Euro relative to other currencies in which we receive revenues could
negatively impact the demand for our products and/or reduce our gross margins.
In addition, to the extent that our receivables and payables are denominated in
different currencies, exchange rate fluctuations could further impact our
reported results of operations. However, our production cycles are relatively
short and our receivables and payables are generally short-term in nature. As a
result, we do not believe that we currently have significant exposure in this
area. We will, if we believe it is necessary, enter into foreign exchange
contracts to hedge certain of these transactions, which could include sales,
receivables and/or payables balances.
Effective January 1, 2001, we adopted SFAS 133. SFAS 133, as amended and interpreted, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. SFAS 133 requires that all derivatives, whether designed in hedging relationship or not, be recorded on the balance sheet at fair value regardless of the purpose or intent for holding them. If a derivative is designated as a fair-value hedge, changes in the fair value of the derivative and the related change in the hedge item are recognized in operations. If a derivative is designated as cash-flow hedge, changes in the fair value of the derivative are recorded in other comprehensive income (“OCI”) in the consolidated statement of shareholders’ equity and are recognized in the consolidated statements of income when the hedged item affects operations. For a derivative that does not qualify as hedge, changes in fair value are recognized in operations. From time to time, we use derivative financial instruments, principally currency forward agreements, as part of our risk management policy to reduce our exposure to market risks from changes in foreign exchange rates. As of December 31, 2006,we had several currency forward derivatives and option structures replicating forward contracts (zero cost collar) with a maturity no longer than 90 days. We may enter into other foreign exchange derivative financial instruments when we assess that the risk can be hedged effectively. This excerpt taken from the LUX 20-F filed Jun 28, 2006. Economic
Risk: A strengthening
of the Euro relative to other currencies in which we receive revenues could
negatively impact the demand for our products and/or reduce our gross margins.
In addition, to the extent that our receivables and payables are denominated in
different currencies, exchange rate fluctuations could further impact our
reported results of operations. However, our production cycles are relatively
short and our receivables and payables are generally short-term in nature. As a
result, we do not believe that we currently have significant exposure in this
area. We will, if we believe it is necessary, enter into foreign exchange
contracts to hedge certain of these transactions, which could include sales,
receivables and/or payables balances.
Effective January 1, 2001, we adopted SFAS 133. SFAS 133, as amended and interpreted, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. SFAS 133 requires that all derivatives, whether designed in hedging relationship or not, be recorded on the balance sheet at fair value regardless of the purpose or intent for holding them. If a derivative is designated as a fair-value hedge, changes in the fair value of the derivative and the related change in the hedge item are recognized in operations. If a derivative is designated as cash-flow hedge, changes in the fair value of the derivative are recorded in other comprehensive income (“OCI”) in the consolidated statement of shareholders’ equity and are recognized in the consolidated statements of income when the hedged item affects operations. For a derivative that does not qualify as hedge, changes in fair value are recognized in operations. From time to time, we use derivative financial instruments, principally currency forward swap agreements, as part of our risk management policy to reduce our exposure to market risks from changes in foreign exchange rates. As of December 31, 2005, we had a short-term (less than ninety days to maturity) simple forward Euro/AUD contract for AUD 67 million maturing on March 16, 2006. We may enter into other foreign exchange derivative financial instruments when we assess that the risk can be hedged effectively. | EXCERPTS ON THIS PAGE:
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