filings.toolsItem 3. Quantitative and Qualitative Disclosures about Market Risk
4K characters. Original on sec.gov · Markdown
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Interest rate and foreign currency sensitivity
There has been no material change in the nature of the Company's interest rate risks or foreign currency exchange risks from those described in Part II Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2021.
The tables below provide information about our financial instruments that are sensitive to changes in interest rates as of June 30, 2022. For further information on the components of the Company's long-term debt and their interest rates, see Note 6 to the condensed consolidated interim financial statements included in this Quarterly Report on Form 10-Q at Part I Item 1.
| Expected maturity date | Average interest rate | Fair value**(1)** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long term debt: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | 17 | $ | 41 | $ | 32 | $ | 32 | $ | 43 | $ | 30 | $ | 4,416 | $ | 4,611 | 4.43 | % | $ | 3,309 | |||||||||||||||||||||||||||||||||||||||
| Variable rate | $ | 80 | $ | 178 | $ | 1,819 | $ | 37 | $ | 2,584 | $ | 3 | $ | 1 | $ | 4,702 | 3.77 | % | $ | 4,509 |
(1)Represents the fair value of the Company’s long-term debt excluding financing leases. See Note 6 to the condensed consolidated financial statements for further details.
| Notional amount | Contract maturity date | Fair value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Receive variable | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 cap agreements | $ | 3,500 | $ | — | $ | — | $ | 3,500 | $ | — | $ | — | $ | — | $ | — | LIBOR above 2% | $ | 84.6 |
Previous: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. · Next: Item 4. Controls and Procedures