Item 7A.  Quantitative and Qualitative Disclosures About Market Risk Policies and Procedures Interest Rate Risk Borrowings Cash and Marketable Securities Pension Assets and Liabilities As an element of our normal business practice, we have established policies and procedures for managing our exposure to changes in interest rates. The objective in managing exposure to interest rate changes is to limit the impact of interest rate changes on earnings and cash flow and to make overall borrowing costs more predictable. To achieve this objective, we may use interest rate hedge transactions or other interest rate hedge instruments to manage the net exposure to interest rate changes related to our portfolio of borrowings and to balance our fixed rate compared with variable rate debt. We did not enter into any interest rate hedge transactions or instruments during the past three years. We are exposed to market risk principally due to changes in interest rates related to our borrowings, cash and cash equivalents, marketable securities, and pension assets and liabilities. Debt with interest rate risk includes borrowings under our Senior Credit Facility. As of December 31, 2020, our debt principal amounts excluding finance lease obligations totaled $608.5 million: $300.0 million, or 49%, was at a fixed rate of 2.25%; and $308.5 million, or 51%, was at a variable rate of 1.90%. The following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations: The fair value of the 2¼% Notes was determined using broker quotes that are based on open markets for our debt securities (Level 2 securities). The fair value of the term loan at December 31, 2020, was estimated based on a third-party model used to derive a relative value price using comparable corporate loans within the same industry, credit quality, and currency. At December 31, 2019, the term loan carrying value approximated fair value. We also have exposure to changes in interest rates related to interest earned and market value on our cash and cash equivalents and marketable securities. Our cash and cash equivalents and marketable securities consist of cash, time deposits, money market funds, and investment grade corporate debt securities. Our investment policy and strategy are focused on preservation of capital and supporting our liquidity requirements. Changes in U.S. interest rates affect the interest earned on our cash and cash equivalents and marketable securities, and the market value of those securities. Our tax-qualified pension assets and liabilities are subject to interest rate risk. The interest rate risk related to our tax-qualified pension assets and liabilities can be found in the "Retirement Benefit Plans" discussion above. 37 Fair Value Principal Amount As of December 31, As of December 31, 2020 2019 2020 2019 (In millions) Term loan $ 306.5  $ 328.1  $ 308.5  $ 328.1  2¼% Notes 609.5  546.0  300.0  300.0  $ 916.0  $ 874.1  $ 608.5  $ 628.1 