1 unchanged sentence
Our exposure to market risk has not changed materially from that disclosed in Part I, Item 7A of the 2023 Annual Report, other than as set forth below.
−Removed: We manage the interest rate risk on our corporate debt through the use of a combination of fixed-rate debt and interest rate swaps (certain of which expired in September 2023 and the remaining swaps will expire in April 2024) that fix a portion of our variable-rate debt.
−Removed: At September 30, 2023, after considering the impact of interest rate swap agreements and excluding finance leases, the interest rate applicable to approximately 80% of our total corporate debt was effectively fixed and the interest rate applicable to the remaining 20% (approximately $574 million) is variable.
−Removed: Assuming no outstanding balance on our Revolving Corporate Credit Facility, a 100 basis point increase in the underlying benchmark rate on our variable-rate debt would result in an increase of approximately $5 million in annual cash interest due to the impact of our hedging arrangements discussed in Footnote 12 “Debt” to our Financial Statements.
−Removed: Assuming we had no outstanding hedging arrangements and no outstanding balance on our Revolving Corporate Credit Facility, a 100 basis point increase in the underlying benchmark rate would result in an annual increase in cash interest of approximately $8 million.
−Removed: The following table presents the scheduled maturities and the total fair value as of September 30, 2023 for our financial instruments that are impacted by market risks:
+Added: We manage the interest rate risk on our corporate debt through the use of a combination of fixed-rate debt and may use interest rate hedges to fix a portion of our variable-rate debt.
+Added: At March 31, 2024, after considering the impact of interest rate hedge agreements and excluding finance leases, the interest rate applicable to approximately 78% of our corporate debt was effectively fixed and the interest rate applicable to the remaining 22% (approximately $644 million) was variable.
+Added: Excluding the impact of the interest rate hedges, 68% of our corporate debt was fixed as of March 31, 2024.
+Added: Assuming we had no outstanding hedging arrangements and no outstanding balance on our Revolving Corporate Credit Facility, a 100 basis point increase in the underlying benchmark rate on our variable-rate debt at March 31, 2024 would result in an annual increase in cash interest of approximately $8 million.
+Added: The following table presents the scheduled maturities and the total fair value as of March 31, 2024 for our financial instruments that are impacted by market risks:
($ in millions) Average
Rate Maturities by Period
−Removed: Remainder of 2023 2024 2025 2026 2027 Thereafter Total Carrying Value Total
+Added: Remainder of 2024
+Added: 2025 2026 2027 2028 Thereafter Total Carrying Value Total
Assets – Maturities represent expected principal receipts;
7 unchanged sentences
Term Loan (1)
+Added: 7.2% $ — $ (784) $ — $ — $ — $ — $ (784) $ (781)
Revolving Corporate Credit Facility 7.2% $ — $ — $ — $ (160) $ — $ — $ (160) $ (160)
3 unchanged sentences
2027 Convertible Notes 3.3% $ — $ — $ — $ (575) $ — $ — $ (575) $ (540)
−Removed: Non-interest bearing note payable —% $ — $ (4) $ — $ — $ — $ — $ (4) $ (4)
+Added: (1) In April 2024, we amended the Corporate Credit Facility to provide for a new $800 million term loan facility that is scheduled to mature on April 1, 2031.
+Added: The proceeds were used to refinance in full the Term Loan, which was scheduled to mature on August 31, 2025.
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.