7 unchanged sentences
Rent payments under our aircraft lease agreements typically do not vary during the term of the lease according to changes in interest rates.
−Removed: However, our borrowing agreements generally require payments based on a variable interest rate index, such as LIBOR.
+Added: However, our borrowing agreements generally require payments based on a variable interest rate index, such as the London Interbank Offered Rate (“LIBOR”), Secured Overnight Funding Rate (“SOFR”) or an alternative reference rate.
Therefore, to the extent our borrowing costs are not fixed, increases in interest rates may reduce our net income by increasing the cost of our debt without any corresponding increase in rents or cash flow from our securities.
−Removed: If LIBOR is no longer available or in certain other circumstances as described in the borrowing agreements, the applicable borrowing agreements provide a mechanism for determining an alternative rate of interest.
+Added: Our borrowing agreements may provide a mechanism for determining an alternative rate of interest as entities begin to transition away from LIBOR due to reference rate reform.
There is no assurance that any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, LIBOR.
3 unchanged sentences
Although the following results of a sensitivity analysis for changes in interest rates may have some limited use as a benchmark, they should not be viewed as a forecast.
−Removed: This forward-looking disclosure also is selective in nature and addresses only the potential interest expense impacts on our financial instruments and, in particular, does not address the mark-to-market impact on our interest rate derivatives.
+Added: This forward-looking disclosure also is selective in nature and addresses only the potential interest expense impacts on our financial instruments.
It also does not include a variety of other potential factors that could affect our business as a result of changes in interest rates.
−Removed: As of February 28, 2022, a hypothetical 100-basis point increase/decrease in our variable interest rate on our borrowings would result in an interest expense increase/decrease of $3.3 million and $0.7 million, respectively, net of amounts received from our interest rate derivatives, over the next twelve months.
+Added: As of February 28, 2023, a hypothetical 100-basis point increase/decrease in our variable interest rate on our borrowings would result in an interest expense increase/decrease of $3.7 million and $3.7 million, respectively, over the next twelve months.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
2 unchanged sentences
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.