1 unchanged sentence
In the normal course of business, we are exposed to market risks, including changes in interest rates and certain foreign currency rates, primarily relating to the Canadian dollar.
+Added: Interest Rate Risk
Our philosophy in managing interest rate risk is to maintain a debt portfolio inclusive of both variable and fixed-rate debt so as to limit our interest expense and exposure to interest rate volatility.
1 unchanged sentence
Under the terms of the swaps, we receive interest based on the 1-month LIBOR index and pay interest at a weighted average rate of approximately 2.92% on an initial notional amount of $350.0 million.
−Removed: When combined with the 1.75% interest rate margin for Eurocurrency borrowings, the effective annual interest rate on such $350.0 million aggregate principal amount of term loans was therefore approximately 4.67% as of December 31, 2020.
+Added: When combined with the 1.75% interest rate margin for Eurocurrency borrowings, the effective annual interest rate on such $350.0 million aggregate principal amount of senior secured term loans was therefore approximately 4.67% as of December 31, 2021.
We designated our interest rate swap agreements as effective cash flow hedges at inception, and therefore the change in fair value is recorded in stockholders' equity as a component of accumulated other comprehensive loss and included in interest expense at the same time as interest expense is affected by the hedged transactions.
3 unchanged sentences
Senior secured term loans due 2024 $ 7,535 $ 7,535 $ 704,556 $ — $ — $ — $ 719,626
+Added: Senior secured term loans due 2028 10,000 10,000 10,000 10,000 10,000 950,000 1,000,000
Unsecured senior notes due 2027 — — — — — 545,000 545,000
5 unchanged sentences
Interest payments on these $300.0 million senior unsecured notes are also due semiannually on January 15 and July 15 in the amount of $7.7 million upon each date.
−Removed: We continue to have interest rate risk relative to the portion of our term loans which exceeds the $350.0 million of principal which is subject to our interest rate swap agreements.
−Removed: As of December 31, 2020, $377.2 million of those term loans was subject to variable interest rate risk.
−Removed: The effective interest rate on the variable portion of the term loans as of December 31, 2020 was 1.90%.
−Removed: Should the average interest rate on the variable rate portion of our long-term debt change by 100 basis points, we estimate that our annual interest expense would change by up to approximately $3.7 million.
+Added: As of December 31, 2021, we continue to have interest rate risk relative to the portion of our senior secured term loans which exceeds the $350.0 million of principal which is subject to our interest rate swap agreements.
+Added: As of December 31, 2021, $1,369.6 million of those term loans were subject to variable interest rate risk.
+Added: The weighted-average interest rate on the variable portion of the term loans as of December 31, 2021 was 2.04%.
+Added: In early 2022, we entered into interest rate swap agreements with a notional amount of $600.0 million to effectively fix the interest rate on an additional $600.0 million of the senior secured term loans.
+Added: After the execution of these interest rate swap agreements, only $769.6 million remained subject to variable interest rate risk and should the average interest rate on the remaining variable rate portion of our long-term debt change by 100 basis points, we estimate that our annual interest expense would change by up to approximately $8.1 million.
+Added: See Note 11, "Financing Arrangements" to our consolidated financial statements included in Item 8 of this report for more details on the 2022 interest rate swaps.
In addition to the fixed and variable rate borrowings described in the above table, we have a revolving credit agreement with maximum borrowings of up to $400.0 million (with a $300.0 million sub-limit for letters of credit), under which no borrowings were outstanding at December 31, 2021.
+Added: Foreign Currency Risk
We view our investment in our foreign subsidiaries as long-term;
7 unchanged sentences
Those cash and receivable amounts are subject to foreign currency gains or losses.
−Removed: Exchange rate movements also affect the translation of Canadian generated profits and losses into U.S.
+Added: Exchange rate movements also affect the translation of
+Added: Canadian generated profits and losses into U.S.
Had the Canadian Dollar been 10.0% stronger or weaker against the U.S.
−Removed: Dollar, we would have reported increased or decreased net income of $1.1 million and $5.3 million for the years ended December 31, 2020 and 2019, respectively.
+Added: Dollar, we would have reported increased or decreased net income of $1.1 million for the years ended December 31, 2021 and 2020.
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.