3 unchanged sentences
We do not enter into derivatives or other financial instruments for trading or speculative purposes.
−Removed: We use derivative instruments to manage exposures to interest rates and foreign currencies.
+Added: We may use derivative instruments to manage exposures to interest rates and foreign currencies.
Derivatives are recorded on the balance sheet at fair value at each balance sheet date.
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 (loss) 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 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 Amended 2019 Credit Agreement, which bear interest at a floating rate based on one-month SOFR plus an applicable borrowing margin.
+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 three-month SOFR plus an applicable borrowing margin.
As of December 31, 2024, a 1.0% increase in interest rate would result in $5.9 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.
1 unchanged sentence
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.
−Removed: We had an interest rate swap agreement to limit our exposure to changes in the variable interest rate on our term loan.
−Removed: The derivative instrument was not designated as a hedge.
−Removed: We terminated this interest rate swap agreement on October 28, 2022.
Foreign exchange risk management
9 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.