Comprehensive income or loss

9 Months Ended

Mar. 31, 2013

Comprehensive income or loss

Comprehensive income or loss

3. Comprehensive income or loss — Comprehensive income or loss is defined as net income or loss plus the change in equity during a period from transactions and other events, excluding those resulting from investments by and distributions to stockholders. We account for foreign currency forward contracts as cash flow hedges in accordance with ASC 815 (formerly SFAS No.133), “Accounting for Derivative Instruments and Hedging Activities.” Changes in the fair value of the contracts that are considered to be effective are recorded in other comprehensive income or loss until the hedged item is recorded in earnings. Effective cash flow hedges are reclassified out of other comprehensive income or loss and into cost of sales when the hedged inventory is sold. Ineffective cash flow hedges are recorded in other income or loss and were not material for the periods presented. The effect of foreign exchange contracts on our financial position or results of operations has historically been immaterial. Comprehensive loss for the quarter ended March 31, 2013 was $12.4 million compared to comprehensive loss of $4.2 million for the quarter ended March 31, 2012, while comprehensive loss for the nine month period ended March 31, 2013 was $40.8 million compared to comprehensive income for the nine month period ended March 31, 2012 of $6.0 million.