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Unformatted text preview: counterparties. The Company only transacts with highly-rated
counterparties. A limit on contingent exposure has been established for each counterparty based on the
counterparty's credit rating, and the Company monitors the financial condition of each counterparty. Credit
risk relates to cash and cash equivalents, short-term investments, accounts receivable, and derivative
contracts and arises from the possibility that a counterparty to an instrument fails to perform.
As at December 31, 2012, the Company's gross credit exposure, including cash and cash equivalents, was
$2,198.7 million and at December 31, 2011, the gross credit exposure, including cash and cash equivalents,
was $1,970.5 million.
To manage liquidity risk, the Company maintains cash positions and has financing in place that the Company
expects will be sufficient to meet its operating and capital expenditure requirements. Potential sources for
liquidity could include, but are not limited to: the Company's current cash position, existing credit facilities,
future operating cash flow, and potential private and public financing. Additionally, the Company reviews its
short-term operational forecasts regularly and long-term budgets to determine its cash requirements. Potential for Incurring Unexpected Costs or Liabilities as a Result of Acquisitions
Although the Company has conducted investigations in connection with recent acquisitions, risks remain
regarding any undisclosed or unknown liabilities associated with these acquisitions. The Company may
discover that it has acquired substantial undisclosed liabilities. The Company may have little recourse
against the seller if any of the representations or warranties provided in connection with these acquisitions
proves to be inaccurate. Such liabilities could have an adverse impact on the Company's business, financial
condition, results of operations and cash flows. Global Financial Condition
The current volatility in the global financial markets combined with weakness in the global economy
continues to affect the profitability and liquidity of businesses in most industries. The fall...
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- Spring '14