Spectrum Brands Holdings, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Market Risk Factors No material change in the Company’s market risk has occurred during the six month period ended April 3, 2022 with the exception of the increase in capacity and borrowings under our Revolver Facility that are subject to variable interest rates. If market interest rates continue to increase, the interest rate on our variable rate debt will increase and will create higher debt service requirements, which would adversely affect our cash flow and could adversely impact our results of operations. The general levels of SOFR and LIBOR affect our interest expense. As of April 3, 2022, we had $1,171.0 million subject to variable interest rates, or 35.6% of total debt, which increased from $398.0 million and 15.7% of total debt as of September 30, 2021. Assuming an increase to market rates of 1.0% as of April 3, 2022, we would incur an increase to annual interest expense of $10.0 million. For additional information, refer to Note 10 – Debt and Note 11 – Derivatives to the Condensed Consolidated Financial Statement included elsewhere in the Quarterly Report and to Part II, Items 7A of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021. 44 Table of Contents