6 unchanged sentences
We have elected the fair value method of accounting and do not designate whether the derivative instrument is an effective hedge of an asset, liability or firm commitment.
−Removed: Changes in the fair values of derivative instruments are recognized in the consolidated statements of operations and comprehensive income in the period incurred.
+Added: Changes in the fair values of derivative instruments are recognized in the consolidated statements of operations and comprehensive (loss) income in the period incurred.
Interest rate risk
3 unchanged sentences
We are exposed to the market risk related to fluctuations in interest rates and market prices for our cash equivalents.
−Removed: We are also exposed to interest rate risk in connection with borrowings under our credit agreement, which bear interest at a floating rate based on one-month LIBOR plus an applicable borrowing margin.
−Removed: As of December 31, 2021, a 1.0% increase in interest rate would result in $14.9 million increase in total interest payable over the remaining life of the credit agreement in the event we were to draw down the entire capacity of our revolving credit facility.
−Removed: For variable rate debt, interest rate changes generally do not affect the fair value of the debt instrument, but impact future earnings and cash flows, assuming other factors are constant.
−Removed: In the ordinary course of business, we may enter into contractual arrangements to reduce our exposure to interest rate risks.
−Removed: We have an interest rate swap agreement to limit our exposure to changes in the variable interest rate on our term loan.
+Added: We are also exposed to interest rate risk in connection with borrowings under our Amended 2019 Credit Agreement, which bear interest at a floating rate based on one-month LIBOR plus an applicable borrowing margin.
+Added: As of December 31, 2022, a 1.0% increase in interest rate would result in $13.8 million increase in total interest payable over the remaining life of the Amended 2019 Credit Agreement in the event we were to draw down the entire capacity of our revolving credit facility.
+Added: For variable rate debt, interest rate changes generally do not affect the fair value of the Amended 2019 Credit Agreement, but impact future earnings and cash flows, assuming other factors are constant.
+Added: In the ordinary course of business, we may enter into contractual arrangements to reduce our exposure to interest rate risks, subject to any applicable limitations in our financing arrangements.
+Added: We had an interest rate swap agreement to limit our exposure to changes in the variable interest rate on our term loan.
The derivative instrument was not designated as a hedge.
+Added: We terminated this interest rate swap agreement on October 28, 2022.
Foreign exchange risk management
−Removed: We operate in countries other than the U.S.
−Removed: and are exposed to foreign currency risks.
−Removed: We bill most direct sales outside of the U.S.
−Removed: in local currencies.
+Added: We operate in countries other than the United States and are exposed to foreign currency risks.
+Added: We bill most direct sales outside of the United States in local currencies.
We expect that the percentage of our sales denominated in foreign currencies will increase in the foreseeable future as we continue to expand into international markets.
2 unchanged sentences
We believe that the risk of a significant impact on our operating income from foreign currency fluctuations is minimal.
−Removed: Although we do not currently have any foreign currency hedges, we have used foreign exchange forward contracts in the past to protect against the impact of foreign currency fluctuations and may use forward contracts, derivatives or other hedges for foreign exchange risk management purposes in the future.
+Added: Although we do not currently have any foreign currency hedges, we have used foreign exchange forward contracts in the past to protect against the impact of foreign currency fluctuations and may use forward contracts, derivatives or other hedges for foreign exchange risk management purposes in the future, subject to any applicable limitations in our financing arrangements.
Effects of inflation
We do not believe that inflation has had a material effect on our results of operations during the periods presented herein.
−Removed: Table of Co n tents
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.