“Normal changes in the foreign currency, from 3 to 5 percent, are the responsibility
of the foreign unit management to cover. We consolidate and report the company’s results in
dollars, and we expect the managers to deliver their plan. It is up to the local managers to
oversee their translation currency exposure. If the currency swings vis-à-vis the dollar is
[sic] greater than 3 to 5 percent, then the translation exposure becomes a corporate issue.
We will peg off the standard (PDR) and coordinate and share the managing of the exposure
with the foreign operation. We regularly discuss the currency topic during our weekly
informal controller talks.”