1 unchanged sentence
Market Risk and Risk Management
−Removed: In the normal course of business, we have exposures to interest rate risk from our investments and Credit Facility.
+Added: In the normal course of business, we have exposures to interest rate risk from our investments and Credit Agreement.
We also have exposure to foreign exchange rate risk related to our foreign operations and foreign currency transactions.
7 unchanged sentences
The functional currencies of our worldwide facilities primarily include the United States Dollar, Euro, South Korean Won, New Taiwan Dollar, Japanese Yen, Pound Sterling, and Chinese Yuan.
−Removed: We are subject to risks associated with revenue and purchasing activities and costs to operate that are denominated in currencies other than our functional currencies such as the Singapore Dollar, Malaysian Ringgit, Mexican Peso and Philippine Peso.
−Removed: The impact of a change in one or more of these particular exchange rates would be immaterial.
+Added: We are subject to risks associated with revenue and purchasing activities and costs to operate that are denominated in currencies other than our functional currencies, such as the Singapore Dollar, Malaysian Ringgit, Mexican Peso, Philippine Peso, and Thai Baht.
+Added: Historically, the impact of changes to these particular exchange rates has not been material to our operating results.
From time to time, we may enter into foreign currency exchange rate contracts to hedge against changes in foreign currency exchange rates on assets and liabilities expected to be settled at a future date, including foreign currency, which may be required for a potential foreign acquisition.
5 unchanged sentences
Interest Rate Risk
−Removed: Our interest rate risk exposure relates primarily on our variable rate Term Loan Facility.
−Removed: As of December 31, 2023 we have interest rate swap agreements in effect that fix the interest rate for $220.7 million at 1.17% of our Term Loan Facility, while $134.3 million of the Term Loan Facility remains floating at 6.21%.
−Removed: The Term Loan Facility and Revolving Credit Facility bear interest, at our option, at a rate based on the Base Rate or SOFR, as defined in the Credit Agreement, plus an applicable margin.
−Removed: The interest rate swap contracts expire on September 10, 2024.
−Removed: After that date, the entire balance of our Term Loan Facility will be subject to a variable interest rate.
−Removed: In addition, should we have future borrowings under our Revolving Facility, those borrowings would be subject to a variable rate.
+Added: At the present time, a change in interest rates does not have an impact upon our future earnings and cash flow because our only outstanding debt is the Convertible Notes, which carry a fixed 2.5% interest rate.
+Added: However, increases in interest rates could impact the decision to borrow under our Credit Agreement and our ability to refinance existing maturities or acquire additional debt on favorable terms.
For more information see Note 18.
−Removed: Long-Term Debt in Part II, Item 8 “Financial Statements and Supplementary Data.” For more information on the interest rate swap that fixes the interest rate for a portion of our Term Loan Facility, see Note 7.
−Removed: Derivative Financial Instruments in Part II, Item 8 “Financial Statements and Supplementary Data.”
−Removed: As of December 31, 2023 with respect to the borrowed portion of our Credit Facility that is subject to a variable interest rate, a hypothetical increase of 100 basis points (1%) in interest rates would have an insignificant impact on our interest expense.
−Removed: A change in interest rates does not have a material impact upon our future earnings and cash flow for fixed rate debt.
−Removed: However, increases in interest rates could impact our ability to refinance existing maturities and acquire additional debt on favorable terms.
+Added: Long-Term Debt in Part II, Item 8 “Financial Statements and Supplementary Data.”
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.