EPIQ » Topics » ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

This excerpt taken from the EPIQ 10-Q filed Apr 29, 2009.
ITEM 3.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

The principal market risks to which we are exposed include interest rates under our senior revolving credit facility, foreign exchange rates giving rise to translation, and fluctuations in short-term interest rates on a portion of our bankruptcy trustee revenue.

 

Interest on our senior revolving credit facility is generally based on a spread, not to exceed 325 basis points over the LIBOR rate. There were no amounts due under our senior revolving credit facility as of March 31, 2009; thereby we had no market risk exposure.

 

We have limited operations outside of the United States, therefore, a portion of our revenues and expenses are incurred in a currency other than U.S. dollars.   We do not utilize hedge instruments to manage the exposures associated with fluctuating currency exchange rates.  The company’s operating results are exposed to changes in exchange rates between the U.S. dollar and the functional currency of the country where we have operations. When the U.S. dollar weakens against foreign currencies, the dollar value of revenues and expenses denominated in foreign currencies increases.  When the U.S. dollar strengthens, the opposite situation occurs.

 

We currently do not hold any interest rate floor options or other derivatives.

 

This excerpt taken from the EPIQ 10-Q filed Oct 30, 2008.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

 

The principal market risks to which we are exposed include interest rates under our senior revolving credit facility, foreign exchange rates giving rise to translation, and fluctuations in short-term interest rates on a portion of our bankruptcy trustee revenue.

 

Interest on our senior revolving credit facility is generally based on a spread, not to exceed 325 basis points over the LIBOR rate. There were no amounts due under our senior revolving credit facility as of September 30, 2008, thereby we had no market risk exposure.

 

We have limited operations in London, therefore, a portion of our revenues and expenses are incurred in a currency other than U.S. dollars.   We do not utilize hedge instruments to manage the exposures associated with fluctuating currency exchange rates.  The company’s operating results are exposed to changes in exchange rates between the U.S. dollar and the British Pound.  When the U.S. dollar weakens against foreign currencies, the dollar value of revenues and expenses denominated in foreign currencies increases.  When the U.S. dollar strengthens, the opposite situation occurs.

 

As of December 31, 2007 we had market risk exposure to interest rates as we held interest rate floor options with a notional value of $800 million.  During February 2008, we sold the interest rate floor options and realized a $3.5 million gain, thereby eliminating our market risk exposure related to these instruments.  We currently do not hold any interest rate floor options or other derivatives.

 

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This excerpt taken from the EPIQ 10-Q filed Jul 30, 2008.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

 

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  As of December 31, 2007, we had market risk exposure to interest rates as we held interest rate floor options with a notional value of $800 million.  In February 2008, we terminated these interest rate floor options, thereby eliminating our market risk exposure related to these instruments.

 

This excerpt taken from the EPIQ 10-Q filed May 2, 2008.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

 

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  As of December 31, 2007, we had market risk exposure to interest rates as we held interest rate floor options with a notional value of $800 million.  During the three months ended March 31, 2008, we terminated these interest rate floor options, thereby eliminating our market risk exposure related to these instruments.

 

These excerpts taken from the EPIQ 10-K filed Mar 4, 2008.

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. During the third quarter of 2007, we purchased three year interest rate floor options, referenced to one-month LIBOR and with various strike prices, with a notional value of $800 million. Our interest rate floor options create a market risk for us. As of December 31, 2007, the interest floor options had an estimated fair value of $2.7 million. If the one-month LIBOR increased by 100 basis points, we estimate the effect would be to decrease income before taxes by approximately $1.6 million. If the one-month LIBOR decreased by 100 basis points, we estimate the effect would be to increase income before income taxes by approximately $4.1 million. These estimated changes in income before income taxes would not affect our cash flows. We do not actively manage the market risk related to these instruments.



ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



        Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market
factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. During the third quarter of 2007, we purchased three year interest rate floor
options, referenced to one-month LIBOR and with various strike prices, with a notional value of $800 million. Our interest rate floor options create a market risk for us. As of
December 31, 2007, the interest floor options had an estimated fair value of $2.7 million. If the one-month LIBOR increased by 100 basis points, we estimate the effect would
be to decrease income before taxes by approximately $1.6 million. If the one-month LIBOR decreased by 100 basis points, we estimate the effect would be to increase income before
income taxes by approximately $4.1 million. These estimated changes in income before income taxes would not affect our cash flows. We do not actively manage the market risk related to these
instruments.



This excerpt taken from the EPIQ 10-Q filed Oct 26, 2007.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

 

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Except for interest rate floor options purchased during 2007, our exposure to market risk has not changed significantly since December 31, 2006.

 

During the third quarter of 2007, we purchased three year interest rate floor options, referenced to one-month LIBOR and with various strike prices, with a notional value of $800 million.  If the one-month LIBOR increased by 100 basis points, we estimate the effect would be to decrease income before taxes by approximately $0.6 million and that there would be no effect on our cash flow.  If the one-month LIBOR decreased by 100 basis points, we estimate the effect would be to increase income before taxes by approximately $1.8 million and that there would be no effect on our cash flow.

 

This excerpt taken from the EPIQ 10-Q filed Jul 30, 2007.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2006.

This excerpt taken from the EPIQ 10-Q filed May 7, 2007.
ITEM 3.     Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2006.

This excerpt taken from the EPIQ 10-Q filed Feb 8, 2007.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2005.

This excerpt taken from the EPIQ 10-Q filed Feb 8, 2007.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2005.

This excerpt taken from the EPIQ 10-Q filed Feb 8, 2007.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2005.

This excerpt taken from the EPIQ 10-Q filed Nov 14, 2006.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2005.

This excerpt taken from the EPIQ 10-Q filed Aug 8, 2006.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2005.

This excerpt taken from the EPIQ 10-Q filed May 9, 2006.
ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. Our exposure to market risk has not changed significantly since December 31, 2005.

This excerpt taken from the EPIQ 10-Q filed Oct 28, 2005.
ITEM 3.          Quantitative and Qualitative Disclosures About Market Risk.

 

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2004.

 

This excerpt taken from the EPIQ 10-Q filed Jul 29, 2005.
Quantitative and Qualitative Disclosures About Market Risk.

 

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  Our exposure to market risk has not changed significantly since December 31, 2004.

 

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