Lumber Liquidators 2015 Annual Report Download - page 39

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The third annual review of the AD and CVD rates was initiated in February 2015. In January 2016, the
DOC issued non-binding preliminary results in the third annual review. The preliminary AD rate was 13.34%
and the CVD preliminary rate was 1.43%. These rates are expected to be finalized in the DOC’s final results
in May 2016. Any change in the applicable rates as a result of the third annual review would apply to imports
occurring after the second period of review.
Based on the preliminary rates set in January 2016 in the third annual review for shipments subsequent to
November 2013 (AD) and shipments subsequent to December 2012 (CVD), we would owe an additional
$5.3 million for all shipments through December 31, 2015. As no rates have been finalized for these periods,
we have not recorded an accrual in our consolidated financial statements for the impact of higher rates for the
time periods subsequent to the second annual review. Based on the information available, we believe there is
at least a reasonable possibility that an additional charge may be incurred in the range of $0 to $5.3 million.
A loss greater than this amount may be incurred, but we are unable to estimate the amount at this time.
In February 2016, the DOC initiated the fourth annual review of AD and CVD rates, which we expect
will follow a similar schedule as the preceding review.
Other Matters
We are also, from time to time, subject to claims and disputes arising in the normal course of business.
In the opinion of management, while the outcome of any such claims and disputes cannot be predicted with
certainty, our ultimate liability in connection with these matters is not expected to have a material adverse
effect on the results of operations, financial position or cash flows.
Item 4. Mine Safety Disclosures.
None.
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