|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the PBG 8-K filed Sep 16, 2009. Foreign
Currency Exchange Rate Risk
In 2008, approximately 34 percent of our net revenues were
generated from outside the United States. Social, economic and
political conditions in these international markets may
adversely affect our results of operations, financial condition
and cash flows. The overall risks to our international
businesses include changes in foreign governmental policies and
other social, political or economic developments. These
developments may lead to new product pricing, tax or other
policies and monetary fluctuations that may adversely impact our
business. In addition, our results of operations and the value
of our foreign assets and liabilities are affected by
fluctuations in foreign currency exchange rates.
As currency exchange rates change, translation of the statements
of operations of our businesses outside the U.S. into
U.S. dollars affects year-over-year comparability. We
generally have not hedged against these types of currency risks
because cash flows from our international operations have been
reinvested locally. We have foreign currency transactional risks
in certain of our international territories for transactions
that are denominated in currencies that are different from their
functional currency. We have entered into forward exchange
contracts to hedge portions of our forecasted U.S. dollar
cash flows in these international territories. A 10 percent
weaker U.S. dollar against the applicable foreign currency,
with all other variables held constant, would result in a change
in the fair value of these contracts of $5 million and
$6 million at December 27, 2008 and December 29,
2007, respectively.
In 2007, we entered into forward exchange contracts to
economically hedge a portion of intercompany receivable balances
that are denominated in Mexican pesos. A 10 percent weaker
U.S. dollar versus the Mexican peso, with all other
variables held constant, would result in a change of
$4 million and $9 million in the fair value of these
contracts at December 27, 2008 and December 29, 2007,
respectively.
These excerpts taken from the PBG 10-K filed Feb 20, 2009. Foreign
Currency Exchange Rate Risk
In 2008, approximately 34 percent of our net revenues were
generated from outside the United States. Social, economic and
political conditions in these international markets may
adversely affect our results of operations, financial condition
and cash flows. The overall risks to our international
businesses include changes in foreign governmental policies and
other social, political or economic developments. These
developments may lead to new product pricing, tax or other
policies and monetary fluctuations that may adversely impact our
business. In addition, our results of operations and the value
of our foreign assets and liabilities are affected by
fluctuations in foreign currency exchange rates.
As currency exchange rates change, translation of the statements
of operations of our businesses outside the U.S. into
U.S. dollars affects year-over-year comparability. We
generally have not hedged against these types of currency risks
because cash flows from our international operations have been
reinvested locally. We have foreign currency transactional risks
in certain of our international territories for transactions
that are denominated in currencies that are different from their
functional currency. We have entered into forward exchange
contracts to hedge portions of our forecasted U.S. dollar
cash flows in these international territories. A 10 percent
weaker U.S. dollar against the applicable foreign currency,
with all other variables held constant, would result in a change
in the fair value of these contracts of $5 million and
$6 million at December 27, 2008 and December 29,
2007, respectively.
In 2007, we entered into forward exchange contracts to
economically hedge a portion of intercompany receivable balances
that are denominated in Mexican pesos. A 10 percent weaker
U.S. dollar versus the Mexican peso, with all other
variables held constant, would result in a change of
$4 million and $9 million in the fair value of these
contracts at December 27, 2008 and December 29, 2007,
respectively.
Foreign Currency Exchange Rate Risk In 2008, approximately 34 percent of our net revenues were generated from outside the United States. Social, economic and political conditions in these international markets may adversely affect our results of operations, financial condition and cash flows. The overall risks to our international businesses include changes in foreign governmental policies and other social, political or economic developments. These developments may lead to new product pricing, tax or other policies and monetary fluctuations that may adversely impact our business. In addition, our results of operations and the value of our foreign assets and liabilities are affected by fluctuations in foreign currency exchange rates. As currency exchange rates change, translation of the statements of operations of our businesses outside the U.S. into U.S. dollars affects year-over-year comparability. We generally have not hedged against these types of currency risks because cash flows from our international operations have been reinvested locally. We have foreign currency transactional risks in certain of our international territories for transactions that are denominated in currencies that are different from their functional currency. We have entered into forward exchange contracts to hedge portions of our forecasted U.S. dollar cash flows in these international territories. A 10 percent weaker U.S. dollar against the applicable foreign currency, with all other variables held constant, would result in a change in the fair value of these contracts of $5 million and $6 million at December 27, 2008 and December 29, 2007, respectively. In 2007, we entered into forward exchange contracts to economically hedge a portion of intercompany receivable balances that are denominated in Mexican pesos. A 10 percent weaker U.S. dollar versus the Mexican peso, with all other variables held constant, would result in a change of $4 million and $9 million in the fair value of these contracts at December 27, 2008 and December 29, 2007, respectively. These excerpts taken from the PBG 10-K filed Feb 27, 2008. Foreign
Currency Exchange Rate Risk
In 2007, approximately 26 percent of our operating income
came from outside the United States. Social, economic and
political conditions in these international markets may
adversely affect our results of operations, cash flows and
financial condition. The overall risks to our international
businesses include changes in foreign governmental policies and
other social, political or economic developments. These
developments may lead to new product pricing, tax or other
policies and monetary fluctuations that may adversely impact our
business. In addition, our results of operations and the value
of the foreign assets and liabilities are affected by
fluctuations in foreign currency exchange rates.
As currency exchange rates change, translation of the statements
of operations of our businesses outside the U.S. into
U.S. dollars affects year-over-year comparability. We
generally have not hedged against these types of currency risks
because cash flows from our international operations have been
reinvested locally.
We have foreign currency transactional risks in certain of our
international territories for transactions that are denominated
in currencies that are different from their functional currency.
We have entered into forward exchange contracts to hedge
portions of our forecasted U.S. dollar cash flows in our
Canadian business. A
10-percent
weaker U.S. dollar against the Canadian dollar, with all
other variables held constant, would result in a decrease in the
fair value of these contracts of $6 million and
$11 million at December 29, 2007 and December 30,
2006, respectively. The decrease in the fair value from the
prior year is due to a decrease in the outstanding forward
exchange contracts at December 29, 2007.
In 2007, we entered into forward exchange contracts to
economically hedge a portion of intercompany receivable balances
that are denominated in Mexican pesos. A 10-percent weaker
U.S. dollar against the Mexican peso, with all variables
held constant, would result in a decrease of $9 million in
the fair value of these contracts at December 29, 2007.
Foreign currency gains and losses reflect both transaction gains
and losses in our foreign operations, as well as translation
gains and losses arising from the re-measurement into
U.S. dollars of the net monetary assets of businesses in
highly inflationary countries. Beginning in 2006, Turkey was no
longer considered highly inflationary, and changed its
functional currency from the U.S. Dollar to the Turkish
Lira.
Foreign Currency Exchange Rate Risk In 2007, approximately 26 percent of our operating income came from outside the United States. Social, economic and political conditions in these international markets may adversely affect our results of operations, cash flows and financial condition. The overall risks to our international businesses include changes in foreign governmental policies and other social, political or economic developments. These developments may lead to new product pricing, tax or other policies and monetary fluctuations that may adversely impact our business. In addition, our results of operations and the value of the foreign assets and liabilities are affected by fluctuations in foreign currency exchange rates. As currency exchange rates change, translation of the statements of operations of our businesses outside the U.S. into U.S. dollars affects year-over-year comparability. We generally have not hedged against these types of currency risks because cash flows from our international operations have been reinvested locally. We have foreign currency transactional risks in certain of our international territories for transactions that are denominated in currencies that are different from their functional currency. We have entered into forward exchange contracts to hedge portions of our forecasted U.S. dollar cash flows in our Canadian business. A 10-percent weaker U.S. dollar against the Canadian dollar, with all other variables held constant, would result in a decrease in the fair value of these contracts of $6 million and $11 million at December 29, 2007 and December 30, 2006, respectively. The decrease in the fair value from the prior year is due to a decrease in the outstanding forward exchange contracts at December 29, 2007. In 2007, we entered into forward exchange contracts to economically hedge a portion of intercompany receivable balances that are denominated in Mexican pesos. A 10-percent weaker U.S. dollar against the Mexican peso, with all variables held constant, would result in a decrease of $9 million in the fair value of these contracts at December 29, 2007. Foreign currency gains and losses reflect both transaction gains and losses in our foreign operations, as well as translation gains and losses arising from the re-measurement into U.S. dollars of the net monetary assets of businesses in highly inflationary countries. Beginning in 2006, Turkey was no longer considered highly inflationary, and changed its functional currency from the U.S. Dollar to the Turkish Lira. | EXCERPTS ON THIS PAGE:
RELATED TOPICS for PBG: |
| |||||||
