Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are exposed to changes in market interest rates and these changes in rates will impact our net interest expense and our cash flow from operations.
−Removed: Substantially all our borrowings carry variable interest rates.
−Removed: An increase in interest rates could have a material impact on our cash flow.
−Removed: Additionally, although SOFR is the recommended replacement rate, it is also possible that lenders may instead choose alternative replacement rates that may differ from LIBOR in ways similar to SOFR or in ways that would result in higher interest costs for us.
−Removed: It is not yet possible to predict the magnitude of LIBOR’s end on our borrowing
−Removed: costs given the remaining uncertainty about which rates will replace LIBOR.
−Removed: As of January 28, 2023, each of the agreements governing our variable rate debt have been transitioned to SOFR.
−Removed: As of January 28, 2023, we have no LIBOR-based borrowings or contracts that extend beyond such date that will need to be converted to a replacement rate.
+Added: The primary market risk we are exposed to is interest rate risk and changes in rates will impact our net interest expense and our cash flow from operations.
+Added: Substantially all of our borrowings carry variable interest rates, and we expect that some of our future outstanding debt will have variable interest rates.
+Added: Accordingly, we seek to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs and may use interest rate caps and/or swap agreements in the future to manage our interest rate risks relating to such variable rate debt.
+Added: Increases in interest rates can result in increased interest expense under our variable rate debt as well as when any of our fixed rate debt matures and needs to be refinanced and an increase in interest rates could have a material impact on our cash flow.
+Added: As of February 3, 2024, our total debt outstanding was $719.0 million, which included $319.0 million under our ABL Revolving Facility and $400.0 million under our First Lien Term Loan at interest rates of 6.44% and 7.33%, respectively.
+Added: See " Note 7 .
+Added: Debt and Credit Arrangements" of our consolidated financial statements included in this Annual Report on Form 10-K for additional information.
+Added: A 100 basis point change in prevailing market rates would cause annual interest costs to change by approximately $7.2 million.
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.