Lowe's 2013 Annual Report Download - page 36

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28
document. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are
qualified by the cautionary statements in this section and in the “Risk Factors” included elsewhere in this Annual Report on
Form 10-K. We do not undertake any obligation to update or publicly release any revisions to forward-looking statements to
reflect events, circumstances or changes in expectations after the date of this report.
Item 7A - Quantitative and Qualitative Disclosures about Market Risk
In addition to the risks inherent in our operations, we are exposed to certain market risks, including changes in interest rates,
commodity prices and foreign currency exchange rates.
Interest Rate Risk
Fluctuations in interest rates do not have a material impact on our financial condition and results of operations because our
long-term debt is carried at amortized cost and consists of fixed-rate instruments. Therefore, providing quantitative
information about interest rate risk is not meaningful for financial instruments.
Commodity Price Risk
We purchase certain commodity products that are subject to price volatility caused by factors beyond our control. We believe
that the price volatility of these products is partially mitigated by our ability to adjust selling prices. The selling prices of these
commodity products are influenced, in part, by the market price we pay, which is determined by industry supply and demand.
Foreign Currency Exchange Rate Risk
Although we have international operating entities, our exposure to foreign currency exchange rate fluctuations is not material to
our financial condition and results of operations.