Avid 2011 Annual Report Download - page 50

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45
assets and liabilities were included in our marketing and selling expenses.
As it relates to our use of foreign currency forward contracts, a hypothetical 10% change in foreign currency rates would not have
a material impact on our financial position, results of operations or cash flows, assuming the above-mentioned forecasts of foreign
currency exposure are accurate, because the impact on the forward contracts as a result of a 10% change would at least partially
offset the impact on the revenues and asset and liability positions of our foreign subsidiaries.
Interest Rate Risk
At December 31, 2011, we held $32.9 million in cash and cash equivalents. Due to the short maturities on any instruments held, a
hypothetical 10% increase or decrease in interest rates would not have a material impact on our financial position, results of
operations or cash flows. In 2010, we established revolving credit facilities that allow us to borrow up to $60 million. At
December 31, 2011, we had no outstanding borrowings under the credit facilities. A hypothetical 10% increase or decrease in
interest rates paid on outstanding borrowings under the credit line would not have a material impact on our financial position,
results of operations or cash flows.