Company: HOUS
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001398987-25-000116
Chunk: 157

Company: Anywhere Real Estate Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 157
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See Note 1, "Basis of Presentation", to the Condensed Consolidated Financial Statements for a discussion of recently issued accounting pronouncements.

One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S. The legislation contains certain provisions related to the full expensing of U.S. research and development costs and other depreciable property. The legislation also includes changes to the determination of the amount of U.S. interest expense that is deductible for U.S. tax purposes. We are evaluating the full effects of the legislation on our estimated annual effective rate and cash tax position, but we expect that the legislation will likely not have a material impact on our financial statements.

Item 3.    Quantitative and Qualitative Disclosures about Market Risks.

We are exposed to market risk from changes in interest rates primarily through our senior secured debt. At September 30, 2025, our primary interest rate exposure was to interest rate fluctuations, specifically SOFR and ABR, due to their impact on our borrowings under the Revolving Credit Facility. We do not have significant exposure to foreign currency risk, nor do we expect to have significant exposure to foreign currency risk in the foreseeable future.

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We assess our market risk based on changes in interest rates utilizing a sensitivity analysis. The sensitivity analysis measures the potential impact on earnings, fair values and cash flows based on a hypothetical change (increase and decrease) in interest rates. We exclude the fair values of relocation receivables and advances and securitization borrowings from our sensitivity analysis because we believe the interest rate risk on these assets and liabilities is mitigated as the rate we earn on relocation receivables and advances and the rate we incur on our securitization borrowings are based on similar variable indices.

At September 30, 2025, we had variable interest rate debt outstanding under our Revolving Credit Facility of $415 million which consisted of $375 million under SOFR and $40 million under ABR. The weighted average interest rate with respect to the Revolving Credit Facility borrowings was 6.17% at September 30, 2025, which is based on Term SOFR plus a 10 basis point credit spread adjustment and ABR, plus (in each case) an additional margin subject to adjustment based on the current senior secured leverage ratio. Based on the September 30, 2025 senior secured leverage ratio, the SOFR and ABR margins were