Redbox 2009 Annual Report Download - page 56

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Based on the balance of our outstanding revolving line of credit of $225.0 million as of December 31, 2009,
an increase or decrease in interest rates over the next year would not affect our interest expense due to our
interest rate swap arrangements. We have hedged our interest rate risk by entering into two interest rate swaps
with notional amounts of $150.0 million and $75.0 million, respectively. The interest rate swaps convert our
variable one-month LIBOR rate financing into a fixed interest rate financing. These fixed interest rate swaps
reduce the effect of fluctuations in the market interest rates. The term of the $150.0 million swap is through
March 20, 2011. The term of the $75.0 million swap is through October 28, 2010.
We are further subject to the risk of foreign exchange rate fluctuation in the normal course of business as a
result of our operations in the United Kingdom, Ireland, Europe, Canada, and Mexico.
Item 8. Financial Statements and Supplementary Data.
See Item 15 for an index to the financial statements and supplementary data required by this item, which are
included as a separate section on page 54 and which are incorporated herein by reference.
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