QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
−Removed: Interest Rate Risk
−Removed: At May 1, 2020, our primary interest rate exposure was from changes in interest rates on our variable rate investment holdings, which were classified as cash and cash equivalents in our consolidated financial statements.
−Removed: The increase in cash and cash equivalents was driven primarily by our issuance of $1.5 billion of senior unsecured notes during the first quarter of 2020 as we sought to strengthen liquidity as a result of the continued uncertainty generated by the COVID-19 pandemic.
−Removed: We also have interest rate exposure related to any outstanding borrowings under our Revolving Facility and our commercial paper program.
−Removed: As of May 1, 2020, we had $2.4 billion of cash investments, no consolidated borrowings under our commercial paper program, and no borrowings outstanding under our Revolving Facility.
−Removed: In general, we expect our variable rate debt to exceed our variable rate cash investments over time, but that may vary in any given period.
−Removed: Based on our variable rate cash investment balance at May 1, 2020, the annualized effect of a 0.1 percentage point decrease in interest rates would result in an annualized pre-tax reduction of our earnings and cash flows of approximately $2.4 million.
+Added: We disclosed certain changes to our interest rate risk pertaining to our variable rate investment holdings in our Quarterly Report on Form 10-Q for the quarterly period ended May 1, 2020.
There have been no other material changes to the disclosures relating to this item from those set forth in our Annual Report on Form 10-K for the fiscal year ended January 31, 2020.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.