34  The following table summarizes the Company's known obligations to make future payments pursuant to certain contracts as  of December 31, 2004, as well as an estimate of the timing in which such obligations are expected to be satisfied: The Company, in the normal course  of doing business, is exposed to the risks  associated with foreign currency exchange rates and changes in interest  rates.  Relative to interest rate risk, the  Company completed a refinancing of  its senior credit facilities during the  second quarter 2003 as discussed in  Liquidity and Capital Resources above.  In conjunction with the 2003 refinancing, the Company entered into  interest rate swap agreements that fixed  the Company’s LIBOR interest rate on  $250.0 million and $50.0 million of  floating rate debt at 2.44% and 3.01%,  expiring in May 2006 and June 2006,  respectively. At December 31, 2004,  the Company’s average LIBOR rate  was 2.5%. A 10% change in the  LIBOR interest rate at December 31,  2004 would have the effect of increasing or decreasing interest expense by approximately $0.3 million.  The Company does not expect changes  in interest rates to have a material effect  on income or cash flows in 2005,  although there can be no assurances that  interest rates will not significantly  change. The Company conducts business in  several international currencies through  its worldwide operations, and as a result  is subject to foreign exchange exposure  due to changes in exchange rates of the  various currencies. Changes in exchange  rates can positively or negatively affect  the Company's sales, gross margins and  retained earnings. The Company attempts to minimize currency exposure  risk by producing its products in the  same country or region in which the  products are sold and thereby generating  revenues and incurring expenses in the  same currency and by managing its  working capital although there can be no  assurance that this approach will be  successful, especially in the event of a  significant and sudden decline in the  value of any of the international  currencies of the Company's worldwide  operations. The Company does not  engage in purchasing forward exchange  contracts for speculative purposes. Foreign Currency Exchange Rate Risk  Interest Rate Risk  Quantitative and Qualitative Disclo- sures About Market Risk  Item 7A. A M P H E N O L C O R P O R A T I O N 2 0 0 4 A N N U A L R E P O R T  Disclosures about contractual obligations and commitments  Contractual Obligations  (dollars in thousands)  Total Less than 1 year 1-3 years  3-5 years More than  5 years Long-term debt  $442,688 $ 14,341 $15,462  $31,939 $380,946 Capital lease obligations  6,365 2,568 3,763  34 - Operating leases  48,708 16,546 17,682  9,127 5,353 Purchase obligations  76,537 74,589 1,402  546 - Other long-term liabilities 7,275 803 6,394 78 - Total $581,573 $108,847 $44,703 $41,724 $386,299