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This excerpt taken from the DRCO 10-Q filed Nov 7, 2007.
We
are
subject to interest rate risk associated with our Revolver, where interest
payments are tied to either the LIBOR or the prime rate. At any time, a sharp
rise in interest rates could have an adverse effect on net interest expense
as
reported in our Condensed Consolidated Statements of Operations. A hypothetical
and instantaneous increase of one full percentage point in the interest rate
on
our Revolver would increase annual interest expense by approximately
$0.1 million.
We
presently have no investments in debt securities and, accordingly, no exposure
to market interest rates on investments. We have no significant exposure to
foreign currency fluctuations. Foreign sales, which are nominal, are primarily
denominated in United States dollars.
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