388 Planning and Forecasting EXHIBIT Company AGCO Corporation (1999) Hedging of translation exposure: Selected company policies. Hedging Policy The Company’s translation exposure resulting from translating the financial statements of foreign subsidiaries into . dollars is not hedged. When practical, this translation impact is reduced by financing local operations with local borrowings. We occasionally use foreign currency contracts to hedge the market risk of a subsidiary’s net asset position. Market value gains and losses on foreign currency contracts used to hedge the market risk of a subsidiary’s net asset position are recognized in “Accumulated Other Comprehensive Income” as translation gains and.
