Aarons 2012 Annual Report Download - page 49

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39
Recent Accounting Pronouncements
Refer to Note 1 to these Consolidated Financial Statements for a discussion of recently issued accounting
pronouncements.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As of December 31, 2012, we had $125.0 million of senior unsecured notes outstanding at a fixed rate of 3.75%. We
had no balance outstanding under our revolving credit agreement indexed to the LIBOR (―London Interbank Offer
Rate‖) or the prime rate, which exposes us to the risk of increased interest costs if interest rates rise. Based on our
overall interest rate exposure at December 31, 2012, a hypothetical 1.0% increase or decrease in interest rates would not
be material.
We do not use any significant market risk sensitive instruments to hedge commodity, foreign currency, or other risks,
and hold no market risk sensitive instruments for trading or speculative purposes.