Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The following table provides information as of December 31, 2019 about our market risk exposure associated with changing interest rates. For long-term debt obligations, the table presents principal cash flows by maturity date and average interest rates related to outstanding obligations. For interest rate swaps, the table presents notional principal amounts and weighted-average interest rates (in millions, except percentages). For more information, see Item 7 of this Annual Report under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” and note 9 to our consolidated financial statements included in this Annual Report.



Long-Term Debt	2020			2021			2022			2023			2024			Thereafter			Total			Fair Value
Fixed Rate Debt (a)	$	1,605.1		$	1,434.4		$	1,303.9		$	3,002.0		$	1,651.2		$	10,511.9		$	19,508.5		$	20,284.9
Weighted-Average Interest Rate (a)	3.67		%	3.47		%	3.57		%	3.20		%	4.36		%	3.37		%
Variable Rate Debt (b)	$	1,323.1		$	12.2		$	35.1		$	720.8		$	—		$	2,600.0		$	4,691.2		$	4,691.3
Weighted-Average Interest Rate (b)(c)	3.45		%	8.13		%	7.04		%	3.00		%	—		%	4.13		%

Interest Rate Swaps
Hedged Variable-Rate Notional Amount	$	9.2		$	9.1		$	—		$	—		$	—		$	—		$	18.3		$	(0.1	)	(d)
Fixed Rate Debt Rate (e)																			9.37		%
Hedged Fixed-Rate Notional Amount	$	—		$	—		$	600.0		$	500.0		$	—		$	—		$	1,100.0		$	1.6		(f)
Variable Rate Debt Rate (g)																			2.85		%


(a)	Fixed rate debt consisted of: Securities issued in the Trust Securitizations; Securities issued in the 2015 Securitization; the 2.800% senior notes due 2020; the 3.300% senior notes due 2021; the 3.450% senior notes due 2021; the 5.900% Notes; the 2.250% senior notes due 2022 (the “2.250% Notes”); the 4.70% senior notes due 2022; the 3.50% senior notes due 2023; the 3.000% senior notes due 2023 (the “3.000% Notes”); the 5.00% senior notes due 2024; the 3.375% senior notes due 2024; the 2.950% senior notes due 2025; the 1.375% senior notes due 2025; the 4.000% senior notes due 2025; the 4.400% senior notes due 2026; the 1.950% senior notes due 2026; the 3.375% senior notes due 2026; the 3.125% senior notes due 2027; the 2.750% senior notes due 2027; the 3.55% senior notes due 2027; the 3.600% senior notes due 2028; the 3.950% senior notes due 2029; the 3.800% senior notes due 2029; the 3.700% senior notes due 2049; the Kenya Debt; the U.S. Subsidiary Debt; and other debt including finance leases.

(a)

Fixed rate debt consisted of: Securities issued in the Trust Securitizations; Securities issued in the 2015 Securitization; the 2.800% senior notes due 2020; the 3.300% senior notes due 2021; the 3.450% senior notes due 2021; the 5.900% Notes; the 2.250% senior notes due 2022 (the “2.250% Notes”); the 4.70% senior notes due 2022; the 3.50% senior notes due 2023; the 3.000% senior notes due 2023 (the “3.000% Notes”); the 5.00% senior notes due 2024; the 3.375% senior notes due 2024; the 2.950% senior notes due 2025; the 1.375% senior notes due 2025; the 4.000% senior notes due 2025; the 4.400% senior notes due 2026; the 1.950% senior notes due 2026; the 3.375% senior notes due 2026; the 3.125% senior notes due 2027; the 2.750% senior notes due 2027; the 3.55% senior notes due 2027; the 3.600% senior notes due 2028; the 3.950% senior notes due 2029; the 3.800% senior notes due 2029; the 3.700% senior notes due 2049; the Kenya Debt; the U.S. Subsidiary Debt; and other debt including finance leases.


(b)	Variable rate debt consisted of: the 2019 364-Day Term Loan, which matured on February 13, 2020; the 2019 Multicurrency Credit Facility, which matures on June 28, 2023; the 2019 Credit Facility, which matures on January 31, 2025; the 2019 Term Loan, which matures on January 31, 2025; the South African credit facility, which amortizes through December 17, 2020; the Colombian credit facility, which amortizes through April 24, 2021; the Brazil credit facility, which matures on January 15, 2022; and the Eaton Towers Debt.

(b)

Variable rate debt consisted of: the 2019 364-Day Term Loan, which matured on February 13, 2020; the 2019 Multicurrency Credit Facility, which matures on June 28, 2023; the 2019 Credit Facility, which matures on January 31, 2025; the 2019 Term Loan, which matures on January 31, 2025; the South African credit facility, which amortizes through December 17, 2020; the Colombian credit facility, which amortizes through April 24, 2021; the Brazil credit facility, which matures on January 15, 2022; and the Eaton Towers Debt.


(c)	Based on rates effective as of December 31, 2019.


(d)	As of December 31, 2019, the interest rate swap agreement in Colombia was included in Other non-current liabilities on the consolidated balance sheet.


(e)	Represents the fixed rate of interest based on contractual notional amount as a percentage of the total notional amount. The interest rate consists of fixed interest of 5.37%, per the interest rate agreement, and a fixed margin of 4.00%, per the loan agreement for the Colombian credit facility.


(f)	As of December 31, 2019, the interest rate swap agreements in the U.S. included $9.0 million in Other non-current assets and $7.4 million in Other non-current liabilities on the consolidated balance sheet.


(g)	Represents the weighted average variable rate of interest based on contractual notional amount as a percentage of total notional amounts.

Interest Rate Risk

As of December 31, 2019, we have one interest rate swap agreement related to debt in Colombia. This swap has been designated as a cash flow hedge, has a notional amount of $18.3 million, has an interest rate of 5.37% and expires in April 2021. We also have three interest rate swap agreements related to the 2.250% Notes. These swaps have been designated as fair value hedges, have an aggregate notional amount of $600.0 million, an interest rate of one-month LIBOR plus applicable spreads and expire in January 2022. In addition, we have three interest rate swap agreements related to a portion of the 3.000% Notes. These swaps have been designated as fair value hedges, have an aggregate notional amount of $500.0 million, an interest rate of one-month LIBOR plus applicable spreads and expire in June 2023.

Changes in interest rates can cause interest charges to fluctuate on our variable rate debt. Variable rate debt as of December 31, 2019 consisted of $700.0 million under the 2019 Multicurrency Credit Facility, $1.6 billion under the 2019 Credit Facility, $1.0 billion under the 2019 Term Loan, $1.0 billion under the 2019 364-Day Term Loan, $600.0 million under the interest rate swap agreements related to the 2.250% Notes, $500.0 million under the interest rate swap agreements related to the 3.000% Notes, $20.8 million under the South African credit facility, $6.1 million under the Colombian credit facility after giving effect to our interest rate swap agreements, $16.3 million under the Brazil credit facility and $329.8 million under the Eaton Towers Debt. A 10% increase in current interest rates would result in an additional $20.8 million of interest expense for the year ended December 31, 2019.

Foreign Currency Risk

We are exposed to market risk from changes in foreign currency exchange rates primarily in connection with our foreign subsidiaries and joint ventures internationally. Any transaction denominated in a currency other than the U.S. Dollar is reported in U.S. Dollars at the applicable exchange rate. All assets and liabilities are translated into U.S. Dollars at exchange rates in effect at the end of the applicable fiscal reporting period and all revenues and expenses are translated at average rates for the period. The cumulative translation effect is included in equity as a component of Accumulated other comprehensive loss. We may enter into additional foreign currency financial instruments in anticipation of future transactions to minimize the impact of foreign currency fluctuations. For the year ended December 31, 2019, 43% of our revenues and 51% of our total operating expenses were denominated in foreign currencies.

As of December 31, 2019, we have incurred intercompany debt that is not considered to be permanently reinvested, and similar unaffiliated balances that were denominated in a currency other than the functional currency of the subsidiary in which it is recorded. As this debt had not been designated as being a long-term investment in nature, any changes in the foreign currency exchange rates will result in unrealized gains or losses, which will be included in our determination of net income. An adverse change of 10% in the underlying exchange rates of our unsettled intercompany debt and similar unaffiliated balances would result in $105.4 million of unrealized losses that would be included in Other expense in our consolidated statements of operations for the year ended December 31, 2019.

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