1.What types of derivative transactions does Xerox engage in (cash flow hedges, fair value hedges or speculative hedges)?
2.What types of commodities does Xerox hedge? How do derivative transactions align with Xerox's overall business strategy?
3.What was the 2007 income statement effect of each category? Give the total dollar amount as well as the effect as a percentage ofrevenues and income before tax. Have these transactions materially affected the profitability of Xerox? Explain your answer.
4.Where does Xerox disclose the financial statement impact of the cash flow hedges it enters into? Do you consider these to have a material impact on its financial position? Explain.