Xerox 2013 Annual Report Download - page 76

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Interest Rate Risk Management
The consolidated weighted-average interest rates related to our total debt for 2013, 2012 and 2011 approximated
5.0%, 4.7%, and 5.2%, respectively. Interest expense includes the impact of our interest rate derivatives.
Virtually all customer-financing assets earn fixed rates of interest. The interest rates on a significant portion of the
Company's term debt are fixed.
As of December 31, 2013, $350 million of our total debt of $8 billion carried variable interest rates, including the
effect of pay variable interest rate swaps, if any, we may use to reduce the effective interest rate on our fixed
coupon debt.
The fair market values of our fixed-rate financial instruments are sensitive to changes in interest rates. At
December 31, 2013, a 10% change in market interest rates would change the fair values of such financial
instruments by approximately $96 million.
59