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Unformatted text preview: mpliance with Regulations
The Company’s forestry and manufacturing operations are subject to both Federal and State
government environmental regulations. The Company’s management believes that it is in
compliance, in all material respects, with all applicable environmental regulations. 17 Derivative Instruments, Hedging and Risk Management Activities
The Company is engaged in the exportation of market pulp to various markets throughout the
world. Management considers the Company’s functional currency to be the U.S. dollar and
approximately 22% of the Company’s indebtedness was Real-denominated, consisting of loans
bearing interest at variable rates. These activities expose the Company to credit and foreign
currency fluctuation risks, as well as risks associated with the effects of changes in floating
interest rates. The Company maintains an overall risk management strategy to minimize
significant unplanned fluctuations caused by foreign exchange rate volatility.
The Company’s Treasury assesses, at least on a weekly basis, macroeconomic issues and the
implications of these iss...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08