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 RISK
The following tables provide information about our debt instruments (dollars in millions), the fair values of which are sensitive to changes in interest rates. A 10 percent increase or decrease in our floating interest rates would not have a material effect on our results of operations. Principal cash flows and related weighted-average interest rates by expected maturity dates are presented. See Note 4 of Condensed Notes to Consolidated Financial Statements for additional information related to our debt.
| March 31, 2026 (a) | |||||||||||||||||||||||||||||||||||||||||||||||
| Expected Maturity Dates | |||||||||||||||||||||||||||||||||||||||||||||||
| Remainder of 2026 | 2027 | 2028 | 2029 | 2030 | There- after | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | 672 | $ | 564 | $ | 1,047 | $ | 439 | $ | 850 | $ | 5,586 | $ | 9,158 | $ | 8,941 | |||||||||||||||||||||||||||||||
| Average interest rate | 4.2 | % | 2.2 | % | 4.4 | % | 4.0 | % | 6.0 | % | 5.4 | % | 5.0 | % | |||||||||||||||||||||||||||||||||
| Floating rate | $ | 110 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 110 | $ | 110 | |||||||||||||||||||||||||||||||
| Average interest rate | 6.3 | % | — | % | — | % | — | % | — | % | — | % | 6.3 | % | |||||||||||||||||||||||||||||||||
| December 31, 2025 (a) | |||||||||||||||||||||||||||||||||||||||||||||||
| Expected Maturity Dates | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | 2029 | 2030 | There- after | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | 672 | $ | 564 | $ | 1,047 | $ | 439 | $ | 850 | $ | 4,736 | $ | 8,308 | $ | 8,167 | |||||||||||||||||||||||||||||||
| Average interest rate | 4.2 | % | 2.2 | % | 4.4 | % | 4.0 | % | 6.0 | % | 5.5 | % | 5.0 | % | |||||||||||||||||||||||||||||||||
| Floating rate | $ | 23 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 23 | $ | 23 | |||||||||||||||||||||||||||||||
| Average interest rate | 7.8 | % | — | % | — | % | — | % | — | % | — | % | 7.8 | % |
(a)Excludes unamortized discounts and debt issuance costs.
OTHER MARKET RISKS
We are exposed to market risks primarily related to the volatility in the price of commodities, the price of credits needed to comply with the Renewable and Low-Carbon Fuel Programs, and foreign currency exchange rates. There have been no material changes to these market risks disclosed in our annual report on Form 10-K for the year ended December 31, 2025. See Note 13 of Condensed Notes to Consolidated Financial Statements for a discussion about these market risks as of March 31, 2026.
Previous: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS · Next: Item 4. CONTROLS AND PROCEDURES