Foreign Currency Management

The objective of our foreign currency hedging activities will be to cut down the threat that our eventual U.S. dollar net money inflows resulting from sales outside the USA are going to be adversely affected by alterations in foreign currency exchange rates.
We enter into forward exchange contracts and acquire foreign currency options (principally euro and Japanese yen) and collars to hedge specified portions of forecasted money flows denominated in foreign currencies. The helpful portion with the alterations in fair worth for these contracts, which have already been designated as foreign currency money flow hedges, was reported in AOCI and reclassified into earnings inside the similar economic statement line item and inside the similar period or periods through which the hedged transaction impacts earnings. The Provider didn't discontinue any foreign currency money flow hedging relationships through the years ended December 31, 2008, 2007 and 2006. Any ineffective portion, which was not important in 2008, 2007 or 2006, with the transform inside the fair worth of those instruments was straight away recognized in net revenue.
Also, the Provider enters into forward exchange contracts which might be helpful financial hedges and will not be designated as hedging instruments beneath SFAS No. 133. These instruments are made use of to offset the earnings influence relating for the variability in foreign currency exchange rates on specified monetary assets and liabilities denominated in nonfunctional currencies. Alterations inside the fair worth of those instruments are straight away recognized in earnings inside the line item other revenue (shed)-net of our consolidated statements of revenue to offset the impact of re measurement with the monetary assets and liabilities.
The Provider also enters into forward exchange contracts to hedge its net investment position in specified big currencies. Beneath SFAS No. 133, alterations inside the fair worth of those instruments are recognized in foreign currency translation adjustment, a component of AOCI, to offset the transform inside the worth with the net investment getting hedged. For the years ended December 31, 2008, 2007 and 2006, we recorded net obtain (loss) in foreign currency translation adjustment associated with those instruments of around $3 million, $(7) million and $3 million, respectively.