Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk primarily due to fluctuations in interest rates. We incur both fixed-rate and variable-rate debt. For fixed-rate debt, changes in interest rates generally affect the fair market value of the debt instrument, but not our earnings or cash flow. Conversely, for variable-rate debt, changes in interest rates generally do not affect the fair market value of the debt instrument, but do affect our earnings and cash flow. We do not have the obligation to prepay fixed-rate debt prior to maturity, and, as a result, interest rate risk and changes in fair market value should not have a significant impact on our fixed-rate debt until we are required or elect to refinance it.
The following table shows our debt obligations by scheduled maturity, weighted-average interest rates, and estimated fair value as of October 31, 2025 ($ amounts in thousands):
Fixed-rate debt Variable-rate debt (a)
Fiscal year of maturity Amount Weighted-
average
interest rate (%) Amount Weighted-
average
interest rate (%)
2026 $ 107,896 3.64% $ 150,000 6.28%
2027 507,878 4.91% —
2028 411,244 4.31% —
2029 13,395 3.36% —
2030 411,015 3.76% 650,000 5.14%
Thereafter 553,404 5.54% —
Bond discounts, premiums, and deferred issuance costs - net (14,220) (2,699)
Total $ 1,990,612 4.68% $ 797,301 5.37%
Fair value at October 31, 2025
$ 1,998,222 $ 800,000
(a) Based upon the amount of variable-rate debt outstanding at October 31, 2025, and holding the variable-rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $8.0 million per year, without consideration of the Company’s interest rate swap transactions.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements, listed in Item 15(a)(1) beginning on page F-1 of this report are incorporated herein by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Not applicable.
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