Sunbeam 2002 Annual Report Download - page 24

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Jarden Corporation
Management’s Discussion and Analysis (Continued)
Changes in Eurodollar or LIBOR interest rates would affect the earnings of the Company either positively
or negatively depending on the changes in short-term interest rates. Assuming that Eurodollar and LIBOR rates
each increased 100 basis points over period end rates on the outstanding term debt and interest rate swap, the
Company’s interest expense would have increased by approximately $0.8 million and $0.5 million for 2002 and
2001, respectively. The amounts were determined by considering the impact of the hypothetical interest rates
on the Company’s borrowing cost, short-term investment rates, interest rate swap and estimated cash flow.
Actual changes in rates may differ from the assumptions used in computing this exposure.
The Company does not invest or trade in any derivative financial or commodity instruments, nor does it
invest in any foreign financial instruments.
PG. 22