ZBRA » Topics » Hedging of Net Assets

This excerpt taken from the ZBRA 10-Q filed May 8, 2009.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound and euro denominated net assets. Forward contracts typically mature within three months after execution of the contracts. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net asset positions, which would ordinarily offset each other. Summary financial information related to these activities included in our statement of earnings as other income (expense) is as follows (in thousands):

 

     Three Months Ended  
     April 4, 2009     March 29, 2008  

Change in gains (losses) from foreign exchange derivatives

   $ 3,252     $ (4,020 )

Gain (loss) on net foreign currency assets

     (4,536 )     4,720  
                

Foreign exchange gain (loss)

   $ (1,284 )   $ 700  
                
     As of  
     April 4, 2009     December 31, 2008  

Notional balance of outstanding contracts:

    

Pound/US dollar

   £ 5,500     £ 5,000  

Euro/US dollar

   17,000     18,500  

Euro/Pound

   7,000     17,000  

Net fair value of outstanding contracts

   $ (20 )   $ (2,414 )
This excerpt taken from the ZBRA 10-K filed Feb 27, 2009.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound and euro denominated net assets. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net euro asset position. Summary financial information related to these activities follows (in thousands):

 

          Year ended December 31,
    
     2008    2007    2006

Change in losses from foreign exchange derivatives

        $ (13,196 )           $ (3,788 )           $ (73 )  

Gain (loss) on net foreign currency assets

        16,714             4,311             (562 )  
              

Net foreign exchange gain (loss)

        $ 3,518             $ 523             $ (635 )  
              
          December 31,
2008
              December 31,
2007
              December 31,
2006
     
    

Notional balance of outstanding contracts:

                       

Euro

      18,500           14,000           17,000    

Pound

      £ 5,000           £ 3,000           £ 2,660    

Euro/Pound

      17,000           20,500           22,000    

Net fair value of outstanding contracts

      $ (2,414 )         $ (104 )         $ (172 )  
This excerpt taken from the ZBRA 10-Q filed Oct 31, 2008.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound and euro denominated net assets. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net euro asset position, which would ordinarily offset each other. Summary financial information related to these activities follows (in thousands):

 

     Three Months Ended     Nine Months Ended  
     September 27,
2008
    September 29,
2007
    September 27,
2008
    September 29,
2007
 

Change in gains and losses from foreign exchange derivatives

   $ 114     $ (1,770 )   $ (3,813 )   $ (1,877 )

Gain on net foreign currency assets

     133       1,747       4,691       1,847  
                                

Net foreign exchange gain/(loss)

   $ 247     $ (23 )   $ 878     $ (30 )
                                
     As of        
     September 27,
2008
    December 31,
2007
   

Notional balance of outstanding contracts:

      

Pound/US dollar

   £ 4,000     £ 3,000    

Euro/US dollar

   7,000     14,000    

Euro/Pound

   23,000     20,500    

Net fair value of outstanding contracts

   $ (494 )   $ (104 )  
This excerpt taken from the ZBRA 10-Q filed Aug 1, 2008.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound and euro denominated net assets. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net euro asset position, which would ordinarily offset each other. Summary financial information related to these activities follows (in thousands):

 

     Three Months Ended     Six Months Ended  
     June 28,
2008
    June 30,
2007
    June 28,
2008
    June 30,
2007
 

Change in gains and losses from foreign exchange derivatives

   $ 92     $ 115     $ (3,928 )   $ (108 )

Gain/(loss) on net foreign currency assets

     (161 )     (297 )     4,559       101  
                                

Net foreign exchange gain

   $ (69 )   $ (182 )   $ 631     $ (7 )
                                

 

     As of  
     June 28,
2008
    December 31,
2007
 

Notional balance of outstanding contracts:

    

Pound/US dollar

   £ 3,500     £ 3,000  

Euro/US dollar

   13,000     14,000  

Euro/Pound

   21,000     20,500  

Net fair value of outstanding contracts

   $ (70 )   $ (104 )

 

15


Table of Contents
This excerpt taken from the ZBRA 10-Q filed Apr 30, 2008.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound and euro denominated net assets. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net euro asset position, which would ordinarily offset each other. Summary financial information related to these activities follows (in thousands):

 

     Three Months Ended  
     March 29,     March 31,  
     2008     2007  

Change in losses from foreign exchange
derivatives

   $ (4,020 )   $ (223 )

Gain on net foreign currency assets

     4,720       398  
                

Net foreign exchange gain

   $ 700     $ 175  
                

 

     As of  
     March 29,
2008
   December 31,
2007
 

Notional balance of outstanding contracts:

     

Pound/US dollar

   £ 3,000    £ 3,000  

Euro/US dollar

   17,000    14,000  

Euro/Pound

   18,000    20,500  

Net fair value of outstanding contracts

   $ 74    $ (104 )

 

-14-


Table of Contents
This excerpt taken from the ZBRA 10-K filed Feb 29, 2008.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound and euro denominated net assets. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net euro asset position. Summary financial information related to these activities follows (in thousands):

 

     Year ended December 31,
     2007     2006     2005

Change in gains and losses from foreign exchange derivatives

   $ (3,788 )   $ (73 )   $ 883

Gain on net foreign currency assets

     4,311       (562 )     403
                      

Net foreign exchange gain/(loss)

   $ 523     $ (635 )   $ 1,286
                      

 

     December 31,
2007
    December 31,
2006
    December 31,
2005

Notional balance of outstanding contracts:

      

Pound

   £ 3,000     £ 2,660     £ 3,289

Euro

   14,000     17,000     25,000

Euro/Pound

   20,500     22,000     16,000

Net fair value of outstanding contracts

   $ (104 )   $ (172 )   $ 553

 

F-28


Table of Contents
This excerpt taken from the ZBRA 10-Q filed Nov 2, 2007.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound- and euro-denominated net assets. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net euro asset position, which would ordinarily offset each other. Summary financial information related to these activities follows (in thousands):

 

     Three Months Ended     Nine Months Ended
     September 29,
2007
    September 30,
2006
    September 29,
2007
    September 30,
2006

Change in gains and (losses) from foreign exchange derivatives

   $ (1,770 )   $ 1,190     $ (1,877 )   $ 11

Gain (loss) on net foreign currency assets

     1,747       (733 )     1,847       176
                              

Net foreign exchange gain and (losses)

   $ (23 )   $ 457     $ (30 )   $ 187
                              

 

     As of  
     September 29,
2007
   December 31,
2006
 

Notional balance of outstanding contracts:

     

Pound/US dollar

   £ 3,000    £ 2,660  

Euro/US dollar

   15,000    17,000  

Euro/Pound

   19,500    22,000  

Net fair value of outstanding contracts

   $ 109    $ (172 )
This excerpt taken from the ZBRA 10-Q filed Aug 3, 2007.

Hedging of Net Assets

We use forward contracts and options to manage exposure related to our pound and euro denominated net assets. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net euro asset position, which would ordinarily offset each other. Summary financial information related to these activities follows (in thousands):

 

     Three Months Ended     Six Months Ended  
     June 30,
2007
    July 1,
2006
    June 30,
2007
    July 1,
2006
 

Change in gains and (losses) from foreign exchange derivatives

   $ 115     $ (502 )   $ (108 )   $ (1,178 )

Gain (loss) on net foreign currency assets

     (297 )     122       101       909  
                                

Net foreign exchange loss

   $ (182 )   $ (380 )   $ (7 )   $ (269 )
                                

 

     As of  
     June 30,
2007
   December 31,
2006
 

Notional balance of outstanding contracts:

     

Pound/US dollar

   £ 3,000    £ 2,660  

Euro/US dollar

   22,500    17,000  

Euro/Pound

   11,000    22,000  

Net fair value of outstanding contracts

   $ 167    $ (172 )
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