EADS records provisions for loss-making contracts when it becomes probable that total contract costs will exceed total contract revenues. Due to the size, length of time and nature of many of EADS’ contracts, the estimation of total revenues and costs at completion is complicated and subject to many variables and estimates, including penalties to be paid to customers related to contract performance. Loss-making contract provisions are therefore reviewed and reassessed regularly. However, future changes in the assumptions used by EADS or a change in the underlying circumstances—including the impact of foreign currency exchange rate fluctuations, as described above under “— Foreign Currency Translation”—may adversely or positively affect the amount of EADS’ loss-making contract provisions and its future financial performance. In particular, its provisions for loss-making contracts do not take into account assumptions on the hedge rates that may apply under such contracts. Therefore, such provisions will vary depending on the evolution of currency exchange rates (in particular the U.S. dollar versus the euro) and other assumptions resulting from regular contract review, including cost reviews.