Lumber Liquidators 2013 Annual Report Download - page 48

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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.
Less than two percent of our revenue, expense and capital purchasing activities are transacted in
currencies other than the U.S. dollar, including the Euro, Canadian dollar, Chinese yuan and Brazilian real.
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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