Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Our operations expose us to a variety of market risks, including the effects of changes in interest rates as we have both fixed-rate and variable-rate debt. We monitor and manage these financial exposures as an integral part of our overall risk management program. Our policies allow for the use of specified financial instruments for hedging purposes only. Use of derivatives for speculation purposes is prohibited.
There were no material changes in our interest rate risk exposure to that disclosed in our 2024 Annual Report, other than as described below.
A larger portion of our debt is subject to variable interest rates as of September 30, 2025 as compared to December 31, 2024. As of September 30, 2025, the principal balance of our debt, excluding finance leases, that was subject to a variable-rate was approximately less than 1% (including the impact of interest rate swaps) and approximately 45% (excluding the impact of interest rate swaps) of the total carrying amount of our debt.
43
Table of Contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.