GNC 2012 Annual Report Download - page 74

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Table of Contents
Interest Rate Market Risk
All of Centers' long-term debt is subject to changing interest rates. Although changes in interest rates do not impact our operating income, the changes
could affect the fair value of such debt and related interest payments. Based on our variable rate debt balance as of December 31, 2011, a 1% change in
interest rates would have no impact on interest expense due to an interest rate floor that exists under the Senior Credit Facility.
Foreign Currency Exchange Rate Market Risk
We are subject to the risk of foreign currency exchange rate changes in the conversion from local currencies to the U.S. dollar of the reported financial
position and operating results of our non-U.S. based subsidiaries. We are also subject to foreign currency exchange rate changes for purchases of goods and
services that are denominated in currencies other than the U.S. dollar. The primary currency to which we are exposed to fluctuations is the Canadian Dollar.
The fair value of our net foreign investments and our foreign denominated payables would not be materially affected by a 10% adverse change in foreign
currency exchange rates for the periods presented.
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