Quantitative and Qualitative Disclosures About Market Risk
−Removed: rate debt or equity or repaid by the sale of assets.
+Added: A change in interest rates will not affect the interest expense associated with our fixed rate debt.
+Added: Interest rate changes, however, will affect the fair value of our fixed rate debt.
+Added: Changes in the interest rate environment upon maturity of this fixed rate debt could have an effect on our future cash flows and earnings, depending on whether the debt is replaced with other fixed rate debt, variable rate debt or equity or repaid by the sale of assets.
To illustrate the impact of changes in the interest rate markets, we performed a sensitivity analysis on our fixed rate debt instruments whereby we modeled the change in net present values arising from a hypothetical 1% increase in interest rates to determine the instruments’ change in fair value.
The following table summarizes the analysis performed as of the dates indicated (in thousands):
−Removed: March 31, 2020
−Removed: December 31, 2019
+Added: June 30, 2020 December 31, 2019
+Added: Principal Change in Principal Change in
+Added: balance fair value balance fair value
Senior unsecured notes $ 10,219,090 $ (734,201) $ 9,724,691 $ (751,848)
+Added: Secured debt 1,703,145 (60,928) 1,814,229 (69,756)
+Added: Totals $ 11,922,235 $ (795,129) $ 11,538,920 $ (821,604)
Our variable rate debt, including our unsecured revolving credit facility and commercial paper program, is reflected at fair value.
−Removed: At March 31, 2020 , we had $2,742,249,000 outstanding related to our variable rate debt.
+Added: At June 30, 2020, we had $2,618,465,000 outstanding related to our variable rate debt.
Assuming no changes in outstanding balances, a 1% increase in interest rates would result in increased annual interest expense of $26,185,000.
At December 31, 2019, we had $3,470,584,000 outstanding under our variable rate debt.
−Removed: Assuming no changes in outstanding balances, a 1% increase in interest rates would have resulted in increased annual interest expense of $34,706,000.
+Added: Assuming no changes in outstan ding balances, a 1% increase in interest rates would have resulted in increased annual interest expense of $34,706,000.
We are subject to currency fluctuations that may, from time to time, affect our financial condition and results of operations.
1 unchanged sentence
Dollar impact the amount of net income we earn from our investments in Canada and the United Kingdom.
−Removed: Based solely on our results for the three months ended March 31, 2020 , including the impact of existing hedging arrangements, if these exchange rates were to increase or decrease by 10%, our net income from these investments would increase or decrease, as applicable, by less than $ 9,000,000 .
+Added: Based solely on our results for the three months ended June 30, 2020, including the impact of existing hedging arrangements, if these exchange rates were to increase or decrease by 10%, our net income from these investments would increase or decrease, as applicable, by less than $6,000,000.
We will continue to mitigate these underlying foreign currency exposures with non-U.S.
4 unchanged sentences
The following table summarizes the results of the analysis performed (dollars in thousands):
−Removed: March 31, 2020
−Removed: December 31, 2019
+Added: June 30, 2020 December 31, 2019
+Added: Carrying Change in Carrying Change in
+Added: Value fair value Value fair value
Foreign currency forward contracts $ 163,527 $ 11,194 $ 26,767 $ 12,136
Debt designated as hedges 1,482,366 14,824 1,586,116 15,861
+Added: Totals $ 1,645,893 $ 26,018 $ 1,612,883 $ 27,997
For additional information regarding fair values of financial instruments, see “Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies” and Notes 12 and 17 to our unaudited consolidated financial statements.
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.