Today the dollar gained 3.53% on yen, and because "10-k: In December 2012, we began hedging, on an after-tax basis, our net investment in Yahoo! Japan with forward contracts..." "The notional amounts of the foreign currency forward contracts related to our net investment hedge were $3B". $3,000M x 3.53%= $105.9M . 7% of the yearly EBITDA GOAL! In just ONE DAY!!
Not quite accurate! Those contracts are a HEDGE with maturities of 9-15mos. out and will fluctuate greatly in that time frame. Its no different then when Buffett sold billions in S&P options and put it in the Berkshire 10-K, he was down hundreds of millions and now he's up over a billion. It's a paper profit! Not a big deal until cashed out down the road...should be profitable though as the dollar gets stronger.