GLYPH<129> difficulties in staffing and managing foreign operations  GLYPH<129> longer payment cycles  GLYPH<129> difficulties in collecting accounts receivable and withholding taxes that limit the repatriation of earnings  GLYPH<129> trade barriers  GLYPH<129> difficulties in complying with varied legal and regulatory requirements across jurisdictions  GLYPH<129> immigration regulations that limit our ability to deploy our employees  GLYPH<129> political instability and threats of terrorism  and GLYPH<129> variations in effective income tax rates among countries where we conduct business. One or more of these factors could have a material adverse effect on our international operations  which could harm our results of operations and financial condition. As we continue to expand our business in emerging markets  such as those in Latin America  the Commonwealth of Independent States  India and Southeast Asia  we face challenges related to more volatile economic conditions  competition from companies that are already present in the market  the need to identify correctly and leverage appropriate opportunities for sales and marketing  poor protection of intellectual property  inadequate protection against crime (including counterfeiting  corruption and fraud)  inadvertent breaches of local laws or regulations and difficulties in recruiting sufficient personnel with appropriate skills and experience. In addition  local business practices in jurisdictions in which we operate  and particularly in emerging markets  may be inconsistent with international regulatory requirements  such as anti-corruption and anti-bribery regulations to which we are subject. It is possible that some of our employees  subcontractors  agents or partners may violate such legal and regulatory requirements  which may expose us to criminal or civil enforcement actions  including penalties and suspension or disqualification from U.S. federal procurement contracting. If we fail to comply with such legal and regulatory requirements  our business and reputation may be harmed. For example  during the height of the financial crisis in fiscal 2008  we recognized higher than usual foreign exchange losses under interest and other expense  net  mainly due to the significant revaluation of assets and liabilities denominated in other currencies attributable to the rapid and significant foreign exchange rate changes associated with the global economic turbulence. Although our foreign exchange losses have been less significant since then as a result of enhanced hedging strategies  we believe that foreign exchange rates may continue to present challenges in future periods. Our policy is to hedge significant net exposures in the major foreign currencies in which we operate  and we generally hedge our net currency exposure with respect to expected revenue and operating costs and certain balance sheet items. We do not hedge all of our currency exposure  including for currencies for which the cost of hedging is prohibitively expensive. We cannot assure you that we will be able to effectively limit all of our exposure to currency exchange rate fluctuations. The imposition of exchange or price controls or other restrictions on the conversion of foreign currencies could also have a material adverse effect on our business  results of operations and financial condition. 11 Our international operations expose us to risks associated with fluctuations in foreign currency exchange rates that could adversely affect our business. Although we have operations throughout the world  approximately 70% to 80% of our revenue and approximately 50% to 60% of our operating costs are denominated in  or linked to  the U.S. dollar. Accordingly  we consider the U.S. dollar to be our functional currency. Fluctuations in exchange rates between the dollar and the currencies in which such revenues are earned or such costs are incurred may have a material adverse effect on our results of operations and financial condition. From time to time we may experience increases in the costs of our operations outside the United States  as expressed in dollars  which could have a material adverse effect on our results of operations and financial condition. As we continue to develop our business in emerging markets  we face increasing challenges that could adversely impact our results of operations  reputation and business.