2 unchanged sentences
Our objective is to minimize the economic impact of these market risks.
−Removed: We use derivatives in accordance with policies and procedures approved by the Audit Committee of the Board of Directors.
−Removed: Derivatives are managed by a senior executive committee whose responsibilities include initiating, managing and monitoring resulting exposures.
+Added: We use derivative instruments in accordance with policies and procedures approved by the Audit Committee of the Board of Directors.
+Added: These activities are managed by a senior executive committee that is responsible for initiating, managing, and monitoring resulting exposures.
We do not enter into financial instruments for trading or speculative purposes.
Interest Rate Risk
−Removed: We are exposed to interest rate risk through our variable rate debt due to changes in SOFR.
−Removed: However, we use interest rate swaps to manage our exposure to interest rate movements on our term credit agreements by swapping existing and anticipated future borrowings from floating rates to fixed rates.
−Removed: As of September 30, 2025, we had $600 million of U.S.
−Removed: variable rate debt outstanding on our term credit agreements.
−Removed: The notional amount of outstanding interest rate swap contracts with respect to our term credit agreements at September 30, 2025 was also $600 million.
+Added: We are exposed to interest rate risk through our variable-rate debt, primarily driven by changes in SOFR.
+Added: To manage this exposure, we utilize interest rate swaps to convert existing and anticipated future floating-rate borrowings under our term credit agreements to fixed rates.
+Added: As of March 31, 2026, we had $1.6 billion of variable-rate debt outstanding, which was fully hedged by interest rate swaps with an aggregate notional amount of $1.6 billion.
+Added: Consequently, a hypothetical one-percentage point increase/decrease in interest rates would result in no corresponding change to our interest payments or interest expense over a 12-month period.
Refer to Note 9 — Derivative Financial Instruments and Hedging Activities for additional information regarding these interest rate swaps.
−Removed: At this current borrowing and derivatives level, a hypothetical one-percentage point increase/decrease in interest rates would result in no corresponding increase/decrease in interest payments and expense over a 12-month period.
The fair market value of our fixed-interest rate debt is also subject to interest rate risk.
−Removed: The estimated fair value of our fixed rate debt at September 30, 2025 was $404.1 million compared to the $450.0 million principal amount.
−Removed: We use interest rates of debt with similar terms and maturities to estimate the fair value of our debt.
−Removed: Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise.
−Removed: A hypothetical one-percentage point increase/decrease in prevailing interest rates at September 30, 2025 would result in a corresponding decrease/increase in the fair value of our fixed rate debt of approximately $20 million and $21 million, respectively.
−Removed: We estimate the periodic effective interest rate on our fixed and variable rate debt to be approximately 2.4% after consideration of interest rate swaps and estimated patronage and excluding unused commitment fees on the Revolving Credit Facility.
−Removed: The following table summarizes our outstanding debt, interest rate swaps and average interest rates, by year of expected maturity and their fair values at September 30, 2025:
+Added: As of March 31, 2026, the estimated fair value of our fixed-rate debt was $404.8 million, compared to a principal amount of $450.0 million.
+Added: We estimate the fair value of our debt using market interest rates for debt with similar terms and maturities.
+Added: Generally, the fair market value of fixed-rate debt increases as interest rates fall and decreases as interest rates rise.
+Added: A hypothetical one-percentage point increase/decrease in prevailing interest rates at March 31, 2026 would result in a corresponding decrease/increase in the fair value of our fixed-rate debt of approximately $18 million and $19 million, respectively.
+Added: We estimate the weighted-average effective interest rate on our combined fixed and variable-rate debt to be approximately 2.3%.
+Added: This estimate accounts for the impact of interest rate swaps and the reduction in cost provided by estimated patronage, and excludes unused commitment fees related to our Revolving Credit Facility.
+Added: The following table summarizes our outstanding debt, interest rate swaps, and average interest rates by year of expected maturity, along with the respective fair values at March 31, 2026:
(Dollars in thousands) 2026 2027 2028 2029 2030 Thereafter Total Fair Value
10 unchanged sentences
(a) Excludes estimated patronage refunds.
−Removed: (b) Interest rates as of September 30, 2025.
−Removed: (c) Average Daily Simple SOFR rate as of September 30, 2025 based on a 30-day look back period.
+Added: (b) Interest rates as of March 31, 2026.
+Added: (c) Weighted average of (i) the Daily Simple SOFR rate on a 25-day look back period and (ii) the 1-Month Term SOFR rate, each as of March 31, 2026 based on the respective notional amounts.
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.