Indemnification Risk. Our contracts, including our agreements with respect to divestitures, include various indemnification 
obligations.  If we are required to satisfy an indemnification obligation, that may have a material adverse effect on our 
business, profitability and cash flow. 
Other Risks.  We have attempted to identify material risk factors currently affecting our business and company. However, 
additional risks that we do not yet know of, or that we currently think are immaterial, may occur or become material. These 
risks could impair our business operations or adversely affect revenues, cash flow or profitability. 
Item 7A. Quantitative and Qualitative Disclosures about Market Risk 
We have fixed rate and variable rate debt instruments.  Our variable rate debt instruments are subject to market risk from 
changes in interest rates. During the first half of fiscal year 2002, in order to manage interest costs and exposure to changing 
interest rates related to our then existing $450 million revolving line of credit, we held two interest rate hedges initiated in 
December 1998. Each hedge was designated a cash flow hedge and was structured such that we paid a fixed rate of interest 
of 4.54% on amounts owed under the revolving line of credit up to the notional amount, and received a floating rate of 
interest based on one month LIBOR.  The notional amount of the two hedges totaled $100 million and expired in December 
2001.  Changes in the fair value of the interest rate hedges, net of tax effect, is reflected in accumulated other comprehensive 
We held a single investment in a marketable security during fiscal year 2002. To protect ourselves from the volatility of the 
value of this marketable security investment, we entered into a no cost collar agreement in June 2001, which matured in June 
2002. The collar, a fair value hedge, was structured so that all fluctuations in the price of the marketable security above or 
below 100% or 102.5% of its value on the date the collar was entered into are hedged. This marketable security investment 
was liquidated as of June 30, 2002, and the related collar was terminated. We do not hold or issue derivative financial 
instruments for trading purposes and are not a party to any leveraged derivative transactions.   
Sensitivity analysis is one technique used to measure the impact of changes in the interest rates on the value of market risk 
sensitive financial instruments.  A hypothetical 10% movement in interest rates would not have a material impact on our future 
earnings, fair value, or cash flows.   



About Services Network Support FAQ Order Contact

Web Hosting Ratings

Our partners:Jsp Web Hosting Unlimited Web Hosting Cheapest Web Hosting  Java Web Hosting Web Templates Best Web Templates PHP Mysql Web Hosting Interland Web Hosting Cheap Web Hosting PHP Web Hosting Tomcat Web Hosting Quality Web Hosting Best Web Hosting  Mac Web Hosting  Business web hosting division of Vision Web Hosting Inc. All rights reserved