Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information on our utilization of financial instruments and an analysis of the sensitivity of these instruments to selected changes in market rates and prices is included in our 2022 Form 10-K.

Our net financial instrument position increased from a liability of $6,898.6 at 30 September 2022 to a liability of $8,120.3 at 30 June 2023. The increase was primarily due to the issuance of U.S. Dollar- and Euro-denominated fixed-rate notes during the second quarter of fiscal year 2023.

Interest Rate Risk

The sensitivity analysis related to the interest rate risk on the fixed portion of our debt portfolio assumes an instantaneous 100 bp move in interest rates from the level at 30 June 2023, with all other variables held constant. A 100 bp increase in market interest rates would result in a decrease of $791 and $364 in the net liability position of financial instruments at 30 June 2023 and 30 September 2022, respectively. A 100 bp decrease in market interest rates would result in an increase of $922 and $425 in the net liability position of financial instruments at 30 June 2023 and 30 September 2022, respectively. The increased sensitivity to market interest rates was due to the higher notional balance of interest rate swaps designated as cash flow hedges and the issuance of U.S. Dollar- and Euro-denominated fixed-rate notes during the fiscal year.

There were no material changes to the sensitivity analysis related to the variable portion of our debt portfolio since 30 September 2022.

Foreign Currency Exchange Rate Risk

The sensitivity analysis related to foreign currency exchange rates assumes an instantaneous 10% change in foreign currency exchange rates from their levels at 30 June 2023, with all other variables held constant. A 10% strengthening or weakening of the functional currency of an entity versus all other currencies would result in a decrease or increase, respectively, of $296 and $165 in the net liability position of financial instruments at 30 June 2023 and 30 September 2022, respectively. The increase in sensitivity is primarily due to the issuance of Euro-denominated fixed-rate notes during the second quarter of fiscal year 2023.