Systemax (SYX)

We are exposed to market risks, which include changes in U.S. and international interest rates as well as changes in currency exchange rates (principally Pounds, Euros and Canadian dollars) as measured against the U.S. dollar and each other.

The translation of the financial statements of our operations outside of the United States is impacted by movements in foreign currency exchange rates. Changes in currency exchange rates as measured against the U.S. dollar may positively or negatively affect sales, gross margins, operating expenses and retained earnings as expressed in U.S. dollars. We have limited involvement with derivative financial instruments and do not use them for trading purposes.  We may enter into foreign currency options or forward exchange contracts aimed at limiting in part the impact of certain currency fluctuations, but as of March 31, 2009 we had no outstanding forward exchange contracts.

Our exposure to market risk for changes in interest rates relates primarily to our variable rate debt.  Our variable rate debt consists of short-term borrowings under our credit facilities.  As of March 31, 2009, there were no outstanding balances under our variable rate credit facility. A hypothetical change in average interest rates of one percentage point is not expected to have a material effect on our financial position, results of operations or cash flows.

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We are exposed to market risks, which include changes in U.S. and international interest rates as well as changes in currency exchange rates (principally Pounds Sterling, Euros and Canadian Dollars) as measured against the U.S. Dollar and each other.

The translation of the financial statements of our operations located outside of the United States is impacted by movements in foreign currency exchange rates. Changes in currency exchange rates as measured against the U.S. dollar may positively or negatively affect income statement, balance sheet and cash flows as expressed in U.S. dollars. Sales would have fluctuated by approximately $112 million and pre tax income would have fluctuated by approximately $2.3 million if average foreign exchange rates changed by 10% in 2008.  We have limited involvement with derivative financial instruments and do not use them for trading purposes. We may enter into foreign currency options or forward exchange contracts aimed at limiting in part the impact of certain currency fluctuations, but as of December 2008 we had no outstanding forward exchange contracts.

Our exposure to market risk for changes in interest rates relates primarily to our variable rate debt.  Our variable rate debt consists of short-term borrowings under our credit facilities.  As of December 2008, there were no outstanding balances under our variable rate credit facility. A hypothetical change in average interest rates of one percentage point is not expected to have a material effect on our financial position, results of operations or cash flows over the next fiscal year.

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We are exposed to market risks, which include
changes in U.S. and international interest rates as well as changes in currency
exchange rates (principally Pounds Sterling, Euros and Canadian Dollars) as
measured against the U.S. Dollar and each other.

The translation of the financial statements
of our operations located outside of the United States is impacted by movements
in foreign currency exchange rates. Changes in currency exchange rates as
measured against the U.S. dollar may positively or negatively affect income
statement, balance sheet and cash flows as expressed in U.S. dollars. Sales
would have fluctuated by approximately $112 million and pre tax income would
have fluctuated by approximately $2.3 million if average foreign exchange rates
changed by 10% in 2008.  We have limited
involvement with derivative financial instruments and do not use them for
trading purposes. We may enter into foreign currency options or forward
exchange contracts aimed at limiting in part the impact of certain currency
fluctuations, but as of December 2008 we had no outstanding forward
exchange contracts.

Our exposure to market risk for changes in
interest rates relates primarily to our variable rate debt.  Our variable rate debt consists of short-term
borrowings under our credit facilities. 
As of December 2008, there were no outstanding balances under our
variable rate credit facility. A hypothetical change in average interest rates
of one percentage point is not expected to have a material effect on our
financial position, results of operations or cash flows over the next fiscal
year.

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