Financial Statement Impact of Translation Alternatives (U.S. $ Thousands)
Although translation and transaction exposures overlap, they are not synonymous. Some items included in translation exposure, such as inventories and fixed assets, are excluded from transaction exposure, whereas other items included in transaction exposure, such as contracts for future sales or purchases, are not included in translation exposure. Thus, it is possible for transaction exposure in a currency to be positive and translation exposure in that same currency to be negative and vice versa.