SPX Technologies, Inc. 10-K

ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk (All amounts are in millions) We are exposed to market risk related to changes in interest rates, foreign currency exchange rates and commodity raw material prices, and we selectively use financial instruments to manage these risks. We do not enter into financial instruments for speculative or trading purposes; however, these instruments may be deemed speculative if the future cash flows originally hedged are no longer probable of occurring as anticipated. Our currency exposures vary, but are primarily concentrated in the South African Rand, British Pound Sterling, and Euro. We generally do not hedge currency translation exposures. Our exposures for commodity raw materials vary, with the highest concentration relating to steel and oil. See Note 14 to our consolidated financial statements for further details. The following table provides information, as of December 31, 2021, about our primary outstanding debt obligations and presents principal cash flows by expected maturity dates, weighted-average interest rates and fair values. Expected Maturity Date 2022 2023 2024 2025 Thereafter Total Fair Value Senior Credit Facilities $ 12.5 $ 12.5 $ 218.7 $ — $ — $ 243.7 $ 243.7 Average interest rate 1.5 % We believe that cash and equivalents, cash flows from operations, and availability under revolving credit facilities and our trade receivables financing arrangement will be sufficient to fund working capital needs, planned capital expenditures, other operational cash requirements and required debt service obligations. At December 31, 2021, we had swaps with a notional amount of $243.7 that cover the period from March 2021 to November 2024. The fair value of th ese swaps was $0.6 at December 31, 2021, with $2.5 recorded as a non-current asset and $1.9 as a current liability. From time to time, we enter into FX forward contracts to manage the exposure on contracts with forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities denominated in currencies other than the functional currency of certain subsidiaries. None of our FX forward contracts are designated as cash flow hedges. We had FX forward contracts with an aggregate notional amount of $8.7 at December 31, 2021, with all of the $8.7 scheduled to mature in 2022. The fair value of our FX contracts was less than $0.1 at December 31, 2021. 50