QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our floating rate debt under the 2022 credit facility exposes us to interest rate risk.
+Added: Our floating rate debt under the 2024 Credit Facilities exposes us to interest rate risk.
Interest rate risk results when the maturity or repricing intervals of interest-earning assets and interest-bearing liabilities are different.
−Removed: A change in the Federal Funds Rate, or the reference rate set by Bank of America, N.A., would have affected the rate at which we could borrow funds under the 2022 credit facility.
−Removed: The balance outstanding under our 2022 credit facility at September 30, 2024 was $337.3 million, of which $187.3 million was subject to rate risk.
−Removed: If market rates were to increase or decrease 100 basis points from the levels at September 30, 2024, interest expense would have increased or decreased approximately $1.9 million annually.
+Added: A change in the Federal Funds Rate, or the reference rate set by Bank of America, N.A., would have affected the rate at which we could borrow funds under the 2024 Credit Facilities.
+Added: The balance outstanding under our 2024 Credit Facilities at March 31, 2025 was $1,548.4 million, of which $1,348.4 million was subject to rate risk.
+Added: If market rates were to increase or decrease 100 basis points from the levels at March 31, 2025, interest expense would have increased or decreased approximately $13.5 million annually.
We do not engage in trading market risk sensitive instruments.
We periodically use interest rate swaps to manage interest rate risk exposure.
−Removed: The interest rate swaps effectively modify our exposure to interest rate risk, primarily through converting portions of our floating rate debt under the 2022 credit facility to a fixed rate basis.
+Added: The interest rate swaps effectively modify our exposure to interest rate risk, primarily through converting portions of our floating rate debt under the 2024 Credit Facilities to a fixed rate basis.
These agreements involve the receipt or payment of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal amounts.
−Removed: As of September 30, 2024, we have the following interest rate swaps outstanding (in thousands):
−Removed: September 30, 2024
+Added: As of March 31, 2025, we have the following interest rate swaps outstanding (in thousands):
+Added: March 31, 2025
Amount Fixed Rate Expiration
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Interest rate swap $ 25,000 4.488 % 10/14/2028
+Added: Interest rate swap $ 50,000 3.703 % 3/14/2030
Management will continue to evaluate the potential use of interest rate swaps as we deem appropriate under certain operating and market conditions.
We do not enter into derivative instruments for trading or speculative purposes.
−Removed: As described within Note 12.
−Removed: Subsequent Events to the accompanying unaudited condensed consolidated financial statements, on November 1, 2024, we entered into the 2024 Credit Facilities.
−Removed: The 2024 Credit Facilities amended and restated the 2022 credit facility.
−Removed: The interest rate under the 2024 Credit Facilities is a floating rate based on certain base rate or Term SOFR, plus an applicable spread.
−Removed: As of November 1, 2024, outstanding debt under the 2024 Credit Facilities was $1,465.5 million, of which $1,315.5 million is subject to rate risk.
−Removed: If market rates were to increase or decrease 100 basis points from the levels at November 1, 2024, interest expense would increase or decrease approximately $13.2 million annually.
In connection with the services provided by our payroll operations, funds collected from our clients’ accounts in advance are segregated and may be invested in short-term investments, such as corporate and municipal bonds.
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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.