1 unchanged sentence
Market risk represents the potential loss that may impact our financial position, results of operations or cash flows due to adverse changes in the financial markets.
−Removed: We are exposed to market risk from changes in the base rates on our Term Loan B.
+Added: We are exposed to market risk from changes in the base rates on our 2023 Credit Facility.
Interest Rates
−Removed: As of September 30, 2022, we had $210.0 million of variable rate bank debt outstanding under our 2017 Credit Facility.
−Removed: The debt bears interest at the three-month Eurodollar rate plus a margin of 2.75%.
+Added: As of March 31, 2023, we had $211.5 million of variable rate bank debt outstanding under our 2023 Credit Facility.
+Added: Our borrowings bear interest on the outstanding principal amount thereof from the date when made at a rate per annum equal to either:
+Added: (i) the Term SOFR (as defined in the 2023 Credit Agreement) plus a margin between 2.50% and 3.00%, depending on the Total Net Leverage Ratio or (ii) the Base Rate (as defined in the 2023 Credit Agreement) plus a margin between 1.50% and 2.00%, depending on the Total Net Leverage Ratio.
+Added: In addition, the unused portion of the Revolving Credit Facility is subject to a rate per annum between 0.30% and 0.40%, depending on the Total Net Leverage Ratio.
Because our debt is subject to interest at a variable rate, our earnings will be affected in future periods by changes in interest rates.
−Removed: If the Eurodollar were to increase by a hypothetical 100 basis points, or one percentage point, from its September 30, 2022 level, our annual interest expense would increase and cash flow from operations would decrease by approximately $2.1 million based on the outstanding balance of our term loan as of September 30, 2022.
+Added: If the SOFR were to increase by a hypothetical 100 basis points, or one percentage point, from its March 31, 2023 level, our annual interest expense would increase and cash flow from operations would decrease by approximately $2.1 million based on the outstanding balance of our term loan as of March 31, 2023.
Foreign Currency
3 unchanged sentences
However, we have operations in countries other than the United States, primarily related to our digital business, and as a result we expect an increasing portion of our future revenues to be denominated in currencies other than the U.S.
−Removed: dollar, primarily the Mexican peso, Argentine peso, certain other Latin American currencies and various other currencies.
−Removed: The effect of an immediate and hypothetical 10% adverse change in foreign exchange rates on foreign-denominated accounts receivable at September 30, 2022 would not be material to our overall financial condition or consolidated results of operations.
+Added: dollar, primarily the Mexican peso, Argentine peso, certain other Latin American currencies and various Asian currencies.
+Added: The effect of an immediate and hypothetical 10% adverse change in foreign exchange rates on foreign-denominated accounts receivable at March 31, 2023 would not be material to our consolidated results of operations or overall financial condition.
Our operating expenses are primarily denominated in U.S.
3 unchanged sentences
As a result, we applied the guidance in ASC 830 by remeasuring non-monetary assets and liabilities at historical exchange rates and monetary-assets and liabilities using current exchange rates (see Note 2 to Notes to Condensed Consolidated Financial Statements).
+Added: We maintain certain cash and cash equivalents in Argentina and South Africa, which countries have foreign exchange controls that could impact our ability to freely repatriate such funds from those countries to the United States.
As our international operations continue to grow, our risks associated with fluctuation in currency rates will become greater and we will continue to reassess our approach to managing this risk.
3 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.