Quantitative and Qualitative Disclosures about Market Risk
−Removed: We are exposed to market risk, primarily related to interest rates.
+Added: We are exposed to certain market risks, including those relating to interest rates and inflation.
Interest Rates - Our floating rate financial instruments subject to interest rate risk include a $650 million Term Loan, a $1.5 billion Revolving Credit Facility, and a $1 billion commercial paper program.
−Removed: As of September 30, 2022, we had $325 million outstanding on the Term Loan and no indebtedness outstanding under our Revolving Credit Facility or our commercial paper program.
−Removed: Based on the amounts outstanding under our Term Loan as of September 30, 2022, an increase of 1% in interest rates would increase the interest expense on our debt by approximately $3 million on an annual basis.
+Added: As of March 31, 2023, we had $215 million outstanding on the Term Loan and no indebtedness outstanding under our Revolving Credit Facility or our commercial paper program.
+Added: Based on the amounts outstanding under our Term Loan as of March 31, 2023, an increase of 1% in interest rates would increase the interest expense on our debt by approximately $2 million on an annual basis.
+Added: Inflation - Macroeconomic factors have contributed, and we expect will continue to contribute, to increasing cost inflation for raw materials, components, and supplies.
+Added: We mitigate some cost inflation risk by negotiating long-term agreements with certain raw material suppliers and incorporating price escalation provisions in customer contracts to the extent possible.
+Added: We include assumptions of anticipated cost growth in the development of our cost of completion estimates, but if inflationary conditions continue over the long-term, our cost assumptions may not be sufficient to cover all cost escalation or may impact the availability of resources to execute the respective contracts.
+Added: Persistent cost inflation over the long-term may have an adverse impact on our financial position, results of operations, or cash flows.
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.