Incredimail 2014 Annual Report Download - page 88

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A significant portion of our costs, including salaries and office expenses are incurred in ILS. Inflation in Israel may have the effect of
increasing the U.S. dollar cost of our operations in Israel. If the U.S. dollar declines in value in relation to the New Israeli Shekel, it will become
more expensive for us to fund our operations in Israel. A revaluation of 1% of the New Israeli Shekel will affect our income before tax by less
than one percent (1%). The exchange rate of the U.S. dollar to the New Israeli Shekel, based on exchange rates published by the Bank of Israel,
was as follows:
Since 2006 we’
ve engaged a firm to analyze our exposure to the fluctuation in foreign currency exchange rates and are implementing
their recommendations since then. However, due to the market conditions, volatility and other factors, its proposals and their implementation
occasionally prove to be ineffective or can cause additional finance expenses.
ITEM 12. DESCRIPTION OF SECU RIT IES OTHER THAN EQUITY SECURITIES
Not applicable.
Year Ended December 31,
2012
2013
2014
Average rate for period
3.858
3.609
3.577
Rate at year
-
end
3.733
3.471
3.889
82