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WDC » Topics » Disclosure About Foreign Currency Risk

These excerpts taken from the WDC 10-K filed Aug 20, 2008.
Disclosure About Foreign Currency Risk
 
Although the majority of our transactions are in U.S. dollars, some transactions are based in various foreign currencies. We purchase short-term, forward exchange contracts to hedge the impact of foreign currency exchange fluctuations on certain underlying assets, liabilities and commitments for operating expenses and product costs denominated in foreign currencies. The purpose of entering into these hedge transactions is to minimize the impact of foreign currency fluctuations on our results of operations. The contract maturity dates do not exceed 12 months. We do not purchase short-term forward exchange contracts for trading purposes. Currently, we focus on hedging our foreign currency risk related to the Thai Baht, Malaysian Ringgit, Euro and the British Pound Sterling. Malaysian Ringgit contracts are designated as cash flow hedges. Euro and British Pound Sterling contracts are designated as fair value hedges. Thai Baht contracts are designated as both cash flow and fair value hedges. See Part II, Item 8, Note 1 in the Notes to Consolidated Financial Statements, included in this Annual Report on Form 10-K.


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Table of Contents

As of June 27, 2008, we had outstanding the following purchased foreign currency forward exchange contracts (in millions, except weighted average contract rate):
 
                         
    Contract
 		    Weighted Average
 		    Unrealized
 		 
    Amount     Contract Rate*     Loss  
 
Foreign currency forward contracts:
                       
Thai Baht cash flow hedges
  $ 733       33.22     $ (9 )
Thai Baht fair value hedges
  $ 144       33.63       —  
Malaysian Ringgit cash flow hedges
  $ 359       3.23     $ (3 )
Euro fair value hedges
  $ 14       0.64       —  
 
 
* Expressed in units of foreign currency per dollar.
 
In 2008, 2007 and 2006, total net realized transaction and forward exchange contract currency gains and losses were not material to our consolidated financial statements.
 
Disclosure
About Foreign Currency Risk


 



Although the majority of our transactions are in
U.S. dollars, some transactions are based in various
foreign currencies. We purchase short-term, forward exchange
contracts to hedge the impact of foreign currency exchange
fluctuations on certain underlying assets, liabilities and
commitments for operating expenses and product costs denominated
in foreign currencies. The purpose of entering into these hedge
transactions is to minimize the impact of foreign currency
fluctuations on our results of operations. The contract maturity
dates do not exceed 12 months. We do not purchase
short-term forward exchange contracts for trading purposes.
Currently, we focus on hedging our foreign currency risk related
to the Thai Baht, Malaysian Ringgit, Euro and the British Pound
Sterling. Malaysian Ringgit contracts are designated as cash
flow hedges. Euro and British Pound Sterling contracts are
designated as fair value hedges. Thai Baht contracts are
designated as both cash flow and fair value hedges. See
Part II, Item 8, Note 1 in the Notes to
Consolidated Financial Statements, included in this Annual
Report on
Form 10-K.





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Table of Contents






As of June 27, 2008, we had outstanding the following
purchased foreign currency forward exchange contracts (in
millions, except weighted average contract rate):


 


























































































































                         

 

 

Contract



 

 

Weighted Average



 

 

Unrealized



 

 

 

Amount

 

 

Contract Rate*

 

 

Loss

 
 


Foreign currency forward contracts:


 

 

 

 

 

 

 

 

 

 

 

 


Thai Baht cash flow hedges


 

$

733

 

 

 

33.22

 

 

$

(9

)


Thai Baht fair value hedges


 

$

144

 

 

 

33.63

 

 

 

—

 


Malaysian Ringgit cash flow hedges


 

$

359

 

 

 

3.23

 

 

$

(3

)


Euro fair value hedges


 

$

14

 

 

 

0.64

 

 

 

—

 






 




 



















*
Expressed in units of foreign currency per dollar.


 



In 2008, 2007 and 2006, total net realized transaction and
forward exchange contract currency gains and losses were not
material to our consolidated financial statements.


 




This excerpt taken from the WDC 10-K filed Aug 28, 2007.
Disclosure About Foreign Currency Risk
 
Although the majority of our transactions are in U.S. Dollars, some transactions are based in various foreign currencies. We purchase short-term, forward exchange contracts to hedge the impact of foreign currency fluctuations on certain underlying assets, liabilities and commitments for operating expenses and product costs denominated in foreign currencies. The purpose of entering into these hedge transactions is to minimize the impact of foreign currency fluctuations on our results of operations. The contract maturity dates do not exceed six months. We do not purchase short-term forward exchange contracts for trading purposes. Currently, we focus on hedging our foreign currency risk related to Thai Baht, Malaysian Ringgit, Euro and British Pound Sterling. Thai Baht and Malaysian Ringgit contracts are designated as cash flow hedges. All other contracts are designated as fair value hedges. See Part II, Item 8, Note 1 in the Notes to Consolidated Financial Statements, included in this Annual Report on Form 10-K.


42

Table of Contents

As of June 29, 2007, we had outstanding the following purchased foreign currency forward exchange contracts (in millions, except weighted average contract rate):
 
                         
    Contract
 		    Weighted Average
 		    Unrealized
 		 
    Amount     Contract Rate*     Gain (Loss)  
 
Foreign currency forward contracts:
                       
Thai Bhat
  $ 256.1       33.10     $ 0.1  
Malaysian Ringgit
  $ 231.8       3.41     $ (1.1 )
Euro
  $ 2.9       0.74       —  
British Pound Sterling
  $ 1.9       0.50       —  
 
 
* Expressed in units of foreign currency per dollar.
 
In 2007, 2006 and 2005, total realized transaction and forward exchange contract currency gains and losses were not material to our consolidated financial statements.
 
This excerpt taken from the WDC 10-K filed Nov 20, 2006.
Disclosure About Foreign Currency Risk
 
Although the majority of our transactions are in U.S. Dollars, some transactions are based in various foreign currencies. We purchase short-term, forward exchange contracts to hedge the impact of foreign currency fluctuations on certain underlying assets, liabilities and commitments for operating expenses and product costs denominated in foreign currencies. The purpose of entering into these hedge transactions is to minimize the impact of foreign currency fluctuations on our results of operations. The contract maturity dates do not exceed six months. We do not purchase short-term forward exchange contracts for trading purposes. Currently, we focus on hedging our foreign currency risk related to the Thai Baht, the Euro and the British Pound Sterling. Thai Baht contracts are designated as cash flow hedges. All other contracts are designated as fair value hedges. See Part II, Item 8, Note 1 in the Notes to Consolidated Financial Statements, included in this Annual Report on Form 10-K.


42

Table of Contents

As of June 30, 2006, we had outstanding the following purchased foreign currency forward exchange contracts (in millions, except weighted average contract rate):
 
                         
    Contract
 		    Weighted Average
 		    Unrealized
 		 
    Amount     Contract Rate*     Gain  
 
Foreign currency forward contracts:
                       
Thai Baht
  $ 261.5       38.34     $ 1.3  
Euro
  $ 1.1       0.78       —  
British Pound Sterling
  $ 1.3       0.54       —  
 
 
* Expressed in units of foreign currency per dollar.
 
In 2006, 2005 and 2004, total realized transaction and forward exchange contract currency gains and losses were not material to our consolidated financial statements.
 

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Aug 20, 2008
10-K
Aug 28, 2007
10-K
Nov 20, 2006

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