Many companies make annual reports available on their corporate website. Annual reports on Form 10-K also can be accessed through the SEC’s EDGAR system at www.sec.gov (under Filing Type, search for 10-K).

Access the most recent annual report for a U.S.-based multinational company with which you are familiar to complete the following requirements.

Required

a. Identify the location(s) in the annual report that provides disclosures related to the translation of foreign currency financial statements and foreign currency hedging.

b. Determine whether the company’s foreign operations have a predominant functional currency.

c. List the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years.

d. Determine whether the company hedges net investments in foreign operations. If so, determine the type(s) of hedging instrument used.