Quantitative and Qualitative Disclosures About Market Risk
−Removed: Our fixed rate debt is made up primarily of $1.0 billion of our senior notes.
−Removed: Except in limited circumstances, we do not have an obligation to prepay our fixed-rate debt prior to maturity and, as a result, interest rate risk and changes in fair value should not have a significant impact on our fixed rate borrowings until we would be required to repay such debt.
−Removed: Our Credit Facility is subject to interest rate changes.
−Removed: We had no borrowings or repayments under the Credit Facility during the year ended December 31, 2023, and had $40.0 million in borrowings and repayments under the Credit Facility during the year ended December 31, 2022.
−Removed: We had no borrowings or repayments under the Credit Facility during the year ended December 31, 2021.
+Added: Our fixed rate debt is made up primarily of $1.3 billion in aggregate principal amount of our senior and convertible senior notes.
+Added: All outstanding senior and convertible senior notes bear fixed rates of interest, and therefore, do not expose us to financial statement risk associated with changes in interest rates.
+Added: The fair values of senior and convertible senior notes change primarily when interest rates change, and in the case of our convertible senior notes, when the market price of our stock fluctuates.
+Added: Except in limited circumstances, we do not have an obligation to prepay our senior notes and, as a result, changes in fair value of our senior notes should not have a significant impact until we would be required to repay such debt if we choose to then also access the capital markets to issue new debt.
+Added: Obligations to prepay our convertible senior notes may be required upon the occurrence of certain limited conversion conditions that are closely related to the fair value of the convertible senior notes, and therefore changes in the fair value of our convertible senior notes should not have a significant impact as conversion is more likely to occur under favorable stock price conditions.
+Added: Our Credit Facility is subject to interest rate changes as the borrowing rates are based on Secured Overnight Financing Rate ("SOFR") or Prime (see Note 6 to our consolidated financial statements included in this report).
+Added: We had no borrowings or repayments under the Credit Facility during the years ended December 31, 2024 and 2023, and had $40.0 million in both borrowings and repayments under the Credit Facility during the year ended December 31, 2022.
We had no outstanding borrowings as of either December 31, 2024 or 2023.
−Removed: There were no interest charges resulting from intraperiod borrowings during the year ended December 31, 2023.
−Removed: Interest charges resulting from the intraperiod borrowings during the year ended December 31, 2022 were not material, and there were no interest charges resulting from intraperiod borrowings during the year ended December 31, 2021.
+Added: There were no interest charges resulting from intraperiod borrowings during the years ended December 31, 2024 and 2023.
+Added: Interest charges resulting from the intraperiod borrowings during the year ended December 31, 2022 were not material.
The following table presents our long-term debt obligations, principal cash flows by maturity, weighted average interest rates and estimated fair market value for the year ended December 31, 2024 (in millions):
1 unchanged sentence
2025 2026 2027 2028 2029 Thereafter Total 2024
+Added: Senior and Convertible Senior Notes
Fixed rate (a) $ — $ — $ 300.0 $ 575.0 $ 450.0 $ — $ 1,325.0 $ 1,284.4
2 unchanged sentences
Fixed rate $ 6.2 $ 20.1 $ 1.6 $ 0.9 $ 0.5 $ — $ 29.3 $ 29.3
−Removed: Average interest rate 1.188 % 1.365 % 3.803 % 4.000 % n/a n/a 1.492 % n/a
−Removed: (a) Fair value of our fixed rate senior notes at December 31, 2023, is derived from quoted market prices by independent dealers.
+Added: Average interest rate 0.433 % 1.216 % 1.692 % — % — % n/a 1.018 % n/a
+Added: (a) Fair value of our fixed rate senior and convertible senior notes at December 31, 2024 is derived from quoted market prices by independent dealers.
Our operations are interest rate sensitive.
3 unchanged sentences
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.