Interest Rate Risk Our interest expense is sensitive to changes in market interest rates. Our long-term debt outstanding at June 30, 2026 was composed of $1,463.5 million of fixed-rate debt and $951.1 million of variable-rate debt with interest based on Adjusted Term SOFR plus an applicable margin. Based on our borrowing level at June 30, 2026, a hypothetical 1% increase in interest rates would decrease our pretax income on an annual basis by approximately $9.5 million.