Quantitative and Qualitative Disclosures About Market Risk
−Removed: Except for the broad effects of COVID-19 as a result of its negative impact on the global economy and major financial markets, there were no material changes to the disclosures regarding market risks in connection with our pension and postretirement plans, interest rate risk exposure, foreign currency exchange rate risk, and commodity risk exposure.
+Added: Except for the broad effects of COVID-19 as a result of its negative impact on the global economy and major financial markets, there were no material changes to the disclosures regarding market risks in connection with our interest rate risk exposure and commodity risk exposure.
See Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of our Annual Report on Form 10-K for the year ended June 30, 2020.
In addition, see Item 2, “— Management’s Discussion and Analysis of Financial Condition and Results of Operations — Factors Affecting Results of Operations — Impact of COVID-19 on Our Business” of this Quarterly Report on Form 10-Q for discussions of disruptions caused by COVID-19.
−Removed: Foreign currency exchange rate risk:
−Removed: As of March 31, 2020 , a uniform hypothetical 5% fluctuation in the GBP/USD exchange rate would have resulted in a change of approximately $14.8 million in the Company’s net asset value.
Potential interest rate risk exposure:
−Removed: We have potential interest rate risk exposure related to outstanding borrowings incurred under our Knicks Revolving Credit Facility and Rangers Revolving Credit Facility, collectively, the “MSG Credit Facilities”, and under the TAO Credit Facilities through our consolidation of Tao Group Hospitality .
−Removed: Changes in interest rates may increase interest expense payments with respect to any borrowings incurred under the MSG Credit Facilities or under the TAO Credit Facilities.
−Removed: Borrowings under our MSG Credit Facilities and TAO Credit Facilities incur interest, depending on our election, at a floating rate based upon LIBOR, the U.S.
+Added: We have potential interest rate risk exposure related to outstanding borrowings incurred under our credit facilities.
+Added: Changes in interest rates may increase interest expense payments with respect to any borrowings incurred under the credit facilities.
+Added: Borrowings under our credit facilities incur interest, depending on our election, at a floating rate based upon LIBOR, the U.S.
Federal Funds Rate or the U.S.
Prime Rate, plus, in each case, a fixed spread.
−Removed: As of March 31, 2020 , we currently have a total of $385 million borrowings outstanding under our MSG Credit Facilities and TAO Credit Facilities.
−Removed: The effect of a hypothetical 100 basis point increase in floating interest rates prevailing as of March 31, 2020 and continuing for a full year would increase interest expense by approximately $3.85 million .
+Added: If appropriate, we may seek to reduce such exposure through the use of interest rate swaps or similar instruments.
+Added: As of September 30, 2020, we had a total of $350 million borrowings outstanding under our credit facilities.
+Added: The effect of a hypothetical 100 basis point increase in floating interest rates prevailing as of September 30, 2020 and continuing for a full year would increase interest expense by approximately $3.5 million.
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