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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Beazer Homes Usa, Inc. · 10-Q · Q3 FY2026 · Period ended Jun 30, 2026
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We are exposed to a number of market risks in the ordinary course of business. Our primary market risk exposure relates to fluctuations in interest rates. We do not believe that our exposure in this area is material to our cash flows or results of operations. As of June 30, 2026, we had variable rate debt outstanding related to our Junior Subordinated Notes and outstanding borrowings under our Unsecured Facility totaling approximately $420.0 million. A one percent increase in the interest rate for these notes would result in an increase of our interest expense by approximately $4.4 million over the next twelve-month period. The estimated fair value of our fixed-rate debt as of June 30, 2026 was $1.00 billion, compared to a carrying amount of $989.1 million. The effect of a hypothetical one-percentage point decrease in our estimated discount rates would increase the estimated fair value of the fixed rate debt instruments from $1.00 billion to $1.04 billion as of June 30, 2026.