filings.toolsItem 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See Part II.—Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report for further details of our market risks and our market sensitive instruments as of December 31, 2025. During the six months ended June 30, 2026, our market risk sensitive instruments fluctuated as a result of changes in interest rates, foreign currency exchange rates and commodity prices, but there have been no material changes to our market risks and our market sensitive instruments from those disclosed in our Annual Report.
Interest Rate Risk
As of June 30, 2026 and December 31, 2025, the following table presents our fixed rate notes as well as the impact of a hypothetical absolute 1% adverse change in interest rates on their respective fair values. Notional amounts and fair values are presented in USD based on the applicable exchange rates as of June 30, 2026 and December 31, 2025, respectively. See Part I - Item 1. Financial Statements, Note 7. "Debt" for the maturity dates of our outstanding debt instruments.
| Notional amounts | Fair Value Asset/(Liability) | Effect of Adverse Change | |||||||||||||||||||||||||||||||||
| (In millions) | As of June 30, 2026 | As of December 31, 2025 | As of June 30, 2026 | As of December 31, 2025 | As of June 30, 2026 | As of December 31, 2025 | |||||||||||||||||||||||||||||
| USD denominated fixed rate notes | $ | 6,400.0 | $ | 4,900.0 | $ | (6,045.0) | $ | (4,539.0) | $ | (412.5) | $ | (328.7) | |||||||||||||||||||||||
| Foreign currency denominated fixed rate notes | $ | 1,266.0 | $ | 1,304.0 | $ | (1,282.3) | $ | (1,340.9) | $ | (74.0) | $ | (59.4) | |||||||||||||||||||||||
As of June 30, 2026, we had no outstanding forward starting interest rate swaps as they were settled in conjunction with the issuance of our 2036 USD senior notes.
Foreign Currency Exchange Risk
The following table includes details of our foreign currency denominated fixed rate notes and our foreign currency forwards used to hedge our foreign exchange rate risk as well as the impact of a hypothetical 10% adverse change in the related foreign currency exchange rates on their respective fair values. Notional amounts and fair values are presented in USD based on the applicable exchange rates as of June 30, 2026 and December 31, 2025, respectively.
| Notional amounts | Fair Value Asset/(Liability) | Effect of Adverse Change | ||||||||||||||||||||||||||||||||||||
| (In millions) | As of June 30, 2026 | As of December 31, 2025 | As of June 30, 2026 | As of December 31, 2025 | As of June 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||
| Foreign currency denominated fixed rate notes | $ | 1,266.0 | $ | 1,304.0 | $ | (1,282.3) | $ | (1,340.9) | $ | (130.8) | $ | (140.9) | ||||||||||||||||||||||||||
| Foreign currency forwards | $ | 139.5 | $ | 104.9 | $ | 4.3 | $ | 0.4 | $ | (12.8) | $ | (11.4) | ||||||||||||||||||||||||||
Commodity Price Risk
The following table includes details of our commodity swaps and options used to hedge commodity price risk as well as the impact of a hypothetical 10% adverse change in the related commodity prices on the fair value of the derivatives. Notional amounts and fair values are presented in USD based on the applicable exchange rates as of June 30, 2026 and December 31, 2025, respectively. The notional for our commodity options include certain offsetting buy and sell positions, which are presented in terms of absolute value.
| Notional amounts | Fair Value Asset/(Liability) | Effect of Adverse Change | ||||||||||||||||||||||||||||||||||||
| (In millions) | As of June 30, 2026 | As of December 31, 2025 | As of June 30, 2026 | As of December 31, 2025 | As of June 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||
| Swaps | $ | 774.8 | $ | 442.1 | $ | 53.7 | $ | 52.1 | $ | (80.5) | $ | (46.9) | ||||||||||||||||||||||||||
| Options | $ | 138.1 | $ | 21.0 | $ | 3.3 | $ | — | $ | (1.4) | $ | — |
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