Question-and-Answer Session
Operator
(Operator Instructions)
And our first question will come from Myles Walton with Oppenheimer.
Myles Walton - Oppenheimer
Thanks. Good morning.
Martin R. Benante
Hi, Myles.
Glenn E. Tynan
Hi, Myles.
Martin R. Benante
I see, Myles, you are trying to get rid of me.
Myles Walton - Oppenheimer
A long wait.
Martin R. Benante
You mind if I finish up the call before I clear up my desk.
Myles Walton - Oppenheimer
Only if you smile for the next annual report.
Martin R. Benante
That's a deal.
Myles Walton - Oppenheimer
That was a good one.
Martin R. Benante
Just when you come in, because I know you are [rating] your presence at our controllers meeting, please don't talk about succession planning.
Myles Walton - Oppenheimer
So, on the last call, we tackled the hedging program by the end of fourth quarter and I guess again here in the first quarter kind of [eating] in maybe 60 basis points. Is there any way that the hedging program is starting to take hold and neutralize maybe the headwinds you might face in the proceeding nine months or what exactly are you building into your expectations for Forex for the rest of the year?
Martin R. Benante
Well, two things. The one thing is you're referring to the translation adjustments. We are hedging transactions. So, let me just break those through. On a transaction basis, you may not have noticed, but in our corporate and other line, there is about $1 million of net FX and hedging gains, yes, gains in the first quarter.
It went the opposite way in the fourth quarter last year, but reversed itself here in the first quarter. That time, both forecasted and actual transactions, the translation is somewhat of a different issue. So, we are hedging the actual cash transactions. Okay?
Myles Walton - Oppenheimer
Okay.
Martin R. Benante
Translation is something that's a little bit rougher to give, but we do anticipate two things. And in terms of translation, we expect those rates to change throughout the year, so expecting it to reverse throughout the year. That's our current forecast for the change in the rates. It's not going to completely reverse, but we're forecasting the translation issue to get better, and specifically in controls for the remainder of the year.
Myles Walton - Oppenheimer
Okay.
Martin R. Benante
We hope to see that reverse. The $1 million gain, you know, that swings a little bit. So, our objective on the hedging program is to be neutral, so that we don't really have to talk about it. That's the objective of any hedging program. So, we have some successes and some not so successes, but --.
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