Lumber Liquidators 2011 Annual Report Download - page 43

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We currently do not engage in any interest rate hedging activity and currently have no intention to do so in the
foreseeable future. However, in the future, in an effort to mitigate losses associated with these risks, we may at times enter
into derivative financial instruments, although we have not historically done so. We do not, and do not intend to, engage in
the practice of trading derivative securities for profit.
Exchange Rate Risk.
The majority of our revenue, expense and capital purchasing activities are transacted in U.S. dollars. However, because
a portion of our operations consists of activities outside of the U.S., we have transactions in other currencies, primarily the
Canadian dollar and Chinese yuan.
We currently do not engage in any exchange rate hedging activity and currently have no intention to do so in the
foreseeable future. However, in the future, in an effort to mitigate losses associated with these risks, we may at times engage
in transactions involving various derivative instruments to hedge revenues, inventory purchases, assets, and liabilities
denominated in foreign currencies
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