Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
In the normal course of business, our financial position and results of operations are routinely subject to a variety of risks, including market risk associated with interest rate movements on borrowings and currency rate movements on non-U.S. dollar denominated assets, liabilities and cash flows. We are also subject to commodity pricing risk via changes in the price of materials used in our manufacturing process. We regularly assess these risks and have established policies and business practices that should mitigate a portion of the adverse effect of these and other potential exposures.
Interest Rate Risk
Our primary exposure to market risk includes interest rate fluctuations in connection with our Term Facility and ABL Facility. Our Term and ABL Facilities are tied to changes in applicable interest rates, including SOFR and total borrowings under our ABL Facility.
As of December 31, 2024 , we ha d $131.0 million of debt consisting of $35.1 million under our Term Facility and $95.9 m illion under our ABL Facility. For additional information about our credit facilities see Note 10 - Long-Term Debt of our Consolidated Financial Statements.
We do not hold any market risk sensitive instruments for trading purposes.
We do not have any interest rate management agreements as of December 31, 2024 .
Commodity Risk
We are also exposed to changes in the price of commodities used in our manufacturing operations. However, commodity price risk related to our current commodities is not material as price changes in commodities can generally be passed along to the customer.
Foreign Exchange Risk
Our business operates internationally, and we are therefore exposed to foreign exchange risk impacts when we transact in a currency other than the USD, our entities functional currency. We regularly assess this risk and have established policies and business practices in place that should mitigate a portion of the adverse effect of the exposure if and when it becomes material.
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