JONES LANG LASALLE INC 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk MARKET AND OTHER RISK FACTORS Interest Rates We assess interest rate sensitivity to estimate the potential effect of rising short-term interest rates on our variable-rate debt. If short-term interest rates were 50 basis points higher during 2022 on our variable-rate debt, our results would reflect an increase of $0.9 million to Interest expense, net of interest income, for the three months ended March 31, 2022. Foreign Exchange The following outlines the significant functional currencies of our revenue, highlighting where exposure to movements in foreign exchange impact our operations in international markets. Three Months Ended March 31, 2022 2021 British pound 8 % 9 % Euro 7 7 Australian dollar 6 6 Other (1) 19 21 Revenue exposed to foreign exchange rates 40 % 43 % United States dollar 60 57 Total revenue 100 % 100 % (1) No other functional currency exceeds 5% of total revenue. To show the impact foreign currencies have on our results of operations, we present the change in local currency for revenue and operating expenses on a consolidated basis and by operating segment in Management's Discussion and Analysis of Financial Condition and Results of Operations included herein. For additional detail of the impact of foreign exchange rates on our results of operations, see Management's Discussion and Analysis of Financial Condition and Results of Operations included herein. We enter into forward foreign currency exchange contracts to manage currency risks associated with intercompany lending and cash management practices. See Note 7, Fair Value Measurements, in the Notes to the Condensed Consolidated Financial Statements for further discussion of our forward contracts.