filings.toolsItem 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
2K characters. Original on sec.gov ·
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
LONG-TERM DEBT OBLIGATIONS
The following summary of our long-term debt obligations includes:
●
scheduled principal repayments for the next five years and after;
●
weighted average interest rates for debt maturing in each of the next five years and after and
●
estimated fair values of outstanding obligations.
We estimate the fair value of long-term debt based on quoted market prices we receive for the same types and issues of our debt or on the discounted value of the future cash flows using market yields for the same type and comparable issues of debt. Changes in market rates of interest affect the fair value of our fixed-rate debt.
Summary of Long-Term Debt Obligations as of June 30, 2024
| DOLLAR AMOUNTS IN MILLIONS | 2024 | 2025 | 2026 | 2027 | 2028 | THEREAFTER | TOTAL**(1)** | FAIR VALUE | ||||||||||||||||||||||||
| Fixed-rate debt | $ | — | $ | 210 | $ | 1,022 | $ | 300 | $ | — | $ | 3,333 | $ | 4,865 | $ | 4,718 | ||||||||||||||||
| Average interest rate | — | % | 8.31 | % | 5.52 | % | 6.95 | % | — | % | 4.82 | % | 5.25 | % | N/A | |||||||||||||||||
| Variable-rate debt(2) | $ | — | $ | — | $ | — | $ | — | $ | 250 | $ | — | $ | 250 | $ | 250 |
(1)
Excludes $43 million of unamortized discounts and capitalized debt expense.
(2)
As of June 30, 2024, the interest rate for our variable-rate debt was 7.29 percent, excluding estimated patronage refunds.
Previous: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A) · Next: Item 4. CONTROLS AND PROCEDURES