FRANCHISEES  AND AFFILIATES FINANCIAL  INSTRUMENTS Some of our franchisees and af filiates  might breach prescribed clauses of franchise or af filiation  contracts, such as  purchasing  policies and marketing plans. Non-compliance with such clauses may have an impact on us. A team of retail  operations advisers  ensures our operating  standards'  consistent  application in  all  of  these stores. W e  make some foreign-denominated purchases of goods and services, exposing ourselves to exchange rate risks.  According  to our risk management policy, we may use derivative financial instruments, such as foreign exchange forward  contracts. The policy's guidelines prohibit us from using derivative financial instruments for speculative purposes, but  they  do not guarantee  that  we  will not  sustain losses  as  a result of our derivative  financial instruments. W e hold receivables generated mainly from sales to affiliate customers. To guard against credit losses, we have adopted  a credit policy that defines mandatory credit requirements to be maintained and guarantees to be provided. Af filiate  customer  assets guarantee  the  majority  of  our receivables.  W e are also exposed to liquidity risk mainly through our non-current debt and creditors. We evaluate our cash position  regularly and estimate $^{(3)}$ that cash flows generated by our operating activities are suf ficient  to provide for all outflows  required by  our financing activities. Montréal, Canada,  December 12, 2014 $^{(1)}$ See table on "Operating income before depreciation and amortization and associate's earnings adjustments"  $^{(2)}$ See table on "Net earnings from continuing operations adjustments" $^{(3)}$ See section on "Forward-looking information" $^{(4)}$ See section on "IFRS and non-IFRS measurements"  $^{(5)}$ See table on "Net earnings adjustments" -  35 -