38 Management’s Discussion and Analysis of Financial Condition and Results of Operations long-term debt. We attempt to limit our exposure to interest rate risk by managing the mix of our long-term fixed rate borrowings and short-term borrowings under our bank credit facilities. The following table provides information about our interest rate swaps as of December 31, 2004: In 2003, we entered into three interest rate swap agreements, designated as fair value hedges, which effectively converted $400 million of our fixed rate debt to floating rate debt. In 2004, we terminated interest rate swap agreements with total notional amounts of $400 million and entered into additional interest rate swap agreements designated as fair value hedges with total notional amounts of  $100 million, leaving interest rate swap agreements with total notional amounts  of $100 million at December 31, 2004. Under the terms of these agreements, we make payments based on specified spreads over six-month LIBOR, and receive payments equal to the interest payments due on the fixed rate debt. The interest rate swap agreements qualify for the “shortcut method” allowed under SFAS No. 133, which allows an assumption of no  ineffectiveness in the hedging relationship. As such, there is no income statement impact from changes in the fair value of the hedging instruments. As of December 31, 2004, after giving effect to the interest rate swaps discussed above, long-term fixed rate borrowings represented approximately 97% of our total borrowings. Assuming a 100 basis-point change in LIBOR, our annual interest cost would change by approximately $2 million. *Interest rates are determined in arrears. These rates have been estimated based on implied forward rates in the yield curve. Maturity Date February 27, 2014 Notional Value $ 100 million Estimated Fair Value $ (81,000) Average Pay Rate* 4.18% Average Receive Rate 5.875%