1 unchanged sentence
Interest rate risk
−Removed: As of September 30, 2023 , our total debt outstanding, excluding unamortized debt issuance costs, was $ 1,722.9 million .
+Added: As of March 31, 2024 , our total debt outstanding, excluding unamortized debt issuance costs, was $ 1,941.6 million .
Of this amount, $ 525.0 million , net of debt discounts, or 27% of our total debt obligations, relates to our contingent Convertible Notes that have a fixed coupon rate.
Our $ 525.0 million outstanding principal amount of Convertible Notes accrue cash interest at a rate of 0.75% of the principal amount per annum.
−Removed: Based on quoted market prices, as of September 30, 2023 , the fair value of our fixed rate Convertible Notes was $ 498.5 million , compared to a carrying value of $ 525.0 million .
−Removed: Further, as of September 30, 2023 we had $ 113.5 million of borrowings under our Credit Facility, or 7% of our total debt obligations.
−Removed: The carrying values of the Credit Facility approximates fair value because interest as of September 30, 2023 , was based on SOFR that resets at various intervals of less than one year.
+Added: Based on quoted market prices, as of March 31, 2024 , the fair value of our fixed rate Convertible Notes was $ 538.0 million , compared to a carrying value of $ 525.0 million .
+Added: Further, as of March 31, 2024 we had $ 619.5 million of borrowings under our Credit Facility, or 32% of our total debt obligations.
+Added: If we were to maintain these borrowings for one year and maximize the potential borrowings available under the revolving credit facility for one year, a 1% (100 basis points) increase in the applicable interest rate would result in additional interest expense to the Company of approximately $12.5 million.
+Added: The carrying values of the Credit Facility approximates fair value because interest as of March 31, 2024 , was based on SOFR that resets at various intervals of less than one year.
Additionally, $ 646.9 million , or 33% of our total debt obligations, relates to Senior Notes having a fixed coupon rate.
Our $ 646.9 million outstanding principal amount of Senior Notes accrue cash interest at a rate of 1.375% of the principal amount per annum.
−Removed: Based on quoted market prices, as of September 30, 2023 , the fair value of our fixed rate Senior Notes was $ 571.8 million , compared to a carrying value of $ 634.2 million .
−Removed: An additional $ 450.0 million, or 26% of our total debt, is related to short-term uncommitted credit agreements.
−Removed: The credit agreements are due within one year and accrue interest at variable rates.
+Added: Based on quoted market prices, as of March 31, 2024 , the fair value of our fixed rate Senior Notes was $ 609.0 million , compared to a carrying value of $ 646.9 million .
+Added: An additional $ 150.0 million, or 8% of our total debt, is related to a short-term uncommitted credit agreement.
+Added: The credit agreement is due within one year and accrues interest at variable rates.
The remaining $ 0.2 million is related to borrowings by certain subsidiaries to fund, from time to time, working capital requirements.
These arrangements generally are due within one year and accrue interest at variable rates.
+Added: Additionally, as of March 31, 2024, we had approximately $4.1 million of finance leases with fixed payment and interest terms that expire between the years of 2024 and 2028.
Our excess cash is invested in instruments with original maturities of three months or less or in certificates of deposit that may be withdrawn at any time without penalty;
1 unchanged sentence
Foreign currency exchange rate risk
−Removed: For the nine months ended September 30, 2023 , approximately 75 % of our revenues were generated in non-U.S.
+Added: For the three months ended March 31, 2024 , approximately 74 % of our revenues were generated in non-U.S.
dollar countries and we expect to continue generating a significant portion of our revenues in countries with currencies other than the U.S.
1 unchanged sentence
dollar to the currencies of countries in which we have significant operations, primarily the euro, British pound, Australian dollar, Polish zloty, Indian rupee, New Zealand dollar, Malaysian ringgit and Hungarian forint.
−Removed: As of September 30, 2023 , we estimate that a 1 0 % fluctuation in these foreign curren cy exchange rates would have the combined annualized effect on reported net income and working capital of approximately $180 million to $190 million .
+Added: As of March 31, 2024 , we estimate that a 1 0 % fluctuation in these foreign curren cy exchange rates would have the combined annualized effect on reported net income and working capital of approximately $120 million to $130 million .
This effect is estimated by applying a 1 0 % adjustment factor to our non-U.S.
20 unchanged sentences
Since we do not designate foreign currency derivatives as hedging instruments pursuant to the accounting standards, we record gains and losses on foreign exchange derivatives in earnings in the period of change.
−Removed: We manage counterparty credit risk (the risk that counterparties will default and not make payments according to the terms of the agreements) on an individual counterparty basis.
−Removed: We mitigate this risk by entering into contracts with collateral posting requirements and/or by performing financial assessments prior to contract execution, conducting periodic evaluations of counterparty performance and maintaining a diverse portfolio of qualified counterparties.
−Removed: We do not expect any significant losses from counterparty defaults.
A majority of our consumer-to-consumer money transfer operations involve receiving and disbursing different currencies, in which we earn a foreign currency spread based on the difference between buying currency at wholesale exchange rates and selling the currency to consumers at retail exchange rates.
1 unchanged sentence
The changes in fair value related to these contracts are recorded in Foreign currency exchange (loss) gain, net on the Consolidated Statements of Income.
−Removed: As of September 30, 2023 , we had foreign currency derivative contracts outstanding with a notional value of $ 426.0 million , primarily in Australian dollars, British pounds, Canadian dollars, euros and Mexican pesos, that were not designated as hedges and mature within a few days.
+Added: As of March 31, 2024 , we had foreign currency derivative contracts outstanding with a notional value of $ 400.8 million , primarily in Australian dollars, British pounds, Canadian dollars, euros and Mexican pesos, that were not designated as hedges and mature within a few days.
For derivative instruments our xe operations write to customers, we aggregate the foreign currency exposure arising from customer contracts, and hedge the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties as part of a broader foreign currency portfolio.
The changes in fair value related to the total portfolio of positions are recorded in Revenues on the Consolidated Statements of Income.
−Removed: As of September 30, 2023 , we held foreign currency derivative contracts outstanding with a notional value of $ 1.0 billion , primarily in U.S.
+Added: As of March 31, 2024 , we held foreign currency derivative contracts outstanding with a notional value of $ 1.1 billion , primarily in U.S.
dollars, euros, British pounds, Australian dollars and New Zealand dollars, that were not designated as hedges and for which the majority mature within the next twelve months.
+Added: We use longer-term foreign currency forward contracts to mitigate risks associated with changes in foreign currency exchange rates on certain foreign currency denominated other asset and liability positions.
+Added: As of March 31, 2024, the Company had foreign currency forward contracts outstanding with a notional value of $563.1 million, primarily in euros.
See Note 11, Derivative Instruments and Hedging Activities, to our unaudited consolidated financial statements for additional information.
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.