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Annual Report
periods all forecasted transactions occurred and, therefore, there were no such gains or losses reclassified into
interest and other income, net. As of March 31, 2010, we had foreign currency option contracts to purchase
approximately $18 million in foreign currency and to sell approximately $30 million of foreign currencies. All of
the foreign currency option contracts outstanding as of March 31, 2010 will mature in the next 12 months. As of
March 31, 2009, we had foreign currency option contracts to purchase approximately $19 million in foreign
currency and to sell approximately $65 million of foreign currencies. As of March 31, 2010 and 2009, these
foreign currency option contracts outstanding had a total fair value of $2 million in each year and are included in
other current assets.
The effect of foreign currency option contracts on our Consolidated Statements of Operations for the fiscal year
ended March 31, 2010, was immaterial.
Balance Sheet Hedging Activities
Our foreign currency forward contracts are not designated as hedging instruments. Accordingly, any gains or
losses resulting from changes in the fair value of the foreign currency forward contracts are reported in interest
and other income, net, in our Consolidated Statements of Operations. The gains and losses on these foreign
currency forward contracts generally offset the gains and losses associated with the underlying foreign-currency-
denominated monetary assets and liabilities, which are also reported in interest and other income, net, in our
Consolidated Statements of Operations. As of March 31, 2010, we had foreign currency forward contracts to
purchase and sell approximately $431 million in foreign currencies. Of this amount, $293 million represented
contracts to sell foreign currencies in exchange for U.S. dollars, $127 million to purchase foreign currency in
exchange for U.S. dollars and $11 million to sell foreign currency in exchange for British pounds sterling. As of
March 31, 2009, we had foreign currency forward contracts to purchase and sell approximately $63 million in
foreign currencies. Of this amount, $53 million represented contracts to sell foreign currencies in exchange for
U.S. dollars, $7 million to purchase foreign currencies in exchange for U.S. dollars and $3 million to sell foreign
currencies in exchange for British pounds sterling. The fair value of our foreign currency forward contracts was
immaterial as of March 31, 2010 and March 31, 2009.
The effect of foreign currency forward contracts on our Consolidated Statements of Operations for the fiscal year
ended March 31, 2010, was as follows (in millions):
Year Ended March 31, 2010
Location of Gain
Recognized in Income on
Derivative
Amount of Gain
Recognized in Income
on Derivative
Foreign currency forward contracts not designated as
hedging instruments .............................. Interest and other income, net $10
(5) BUSINESS COMBINATIONS
On April 1, 2009, we adopted FASB ASC 805, Business Combinations, which generally requires the recognition
of assets acquired, liabilities assumed, and any noncontrolling interest in an acquiree at the acquisition date based
on their fair value with limited exceptions. FASB ASC 805 changes the accounting treatment for certain specific
items and includes a substantial number of new disclosure requirements.
83