Ross 2015 Annual Report Download - page 43

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41
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks, which primarily include changes in interest rates. We do not engage in financial
transactions for trading or speculative purposes.
We occasionally use forward contracts to hedge against fluctuations in foreign currency prices. We had no outstanding
forward contracts as of January 30, 2016.
Interest that is payable on our revolving credit facility is based on variable interest rates and is, therefore, affected by
changes in market interest rates. As of January 30, 2016, we had no borrowings outstanding under our revolving credit
facility.
We have two outstanding series of unsecured notes held by institutional investors: Series A Senior Notes due December
2018 for $85 million accrue interest at 6.38% and Series B Senior Notes due December 2021 for $65 million accrue interest
at 6.53%. The amount outstanding under these notes as of January 30, 2016 was $150 million. We also have unsecured
3.375% Senior Notes due September 2024 with an aggregate principal amount of $250 million. Interest that is payable on
our senior notes is based on fixed interest rates and is therefore unaffected by changes in market interest rates.
Interest is receivable on our short- and long-term investments. Changes in interest rates may impact interest income
recognized in the future, or the fair value of our investment portfolio.
A hypothetical 100 basis point increase or decrease in prevailing market interest rates would not have a material impact on
our consolidated financial position, results of operations, cash flows, or the fair values of our short- and long-term
investments as of and for the year ended January 30, 2016. We do not consider the potential losses in future earnings and
cash flows from reasonably possible, near-term changes in interest rates to be material.