Quantitative and Qualitative Disclosures About Market Risk.
−Removed: For quantitative and qualitative disclosures about market risks, see “Quantitative and Qualitative Disclosures about Market Risk” in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2022.
−Removed: As of the third quarter of 2023, there were no material changes in our exposures to market risk.
+Added: Interest Rate Risk
+Added: During the quarter, we engaged in strategic refinancing activities which involved the issuance of new debt instruments and the extinguishment of existing obligations.
+Added: Both the New Term Loans and Revolving Credit Facility are exposed to variable interest rates.
+Added: Borrowings outstanding under our New Term Loans was approximately $1,045,000 as of March 31, 2024 and bears interest at variable rates.
+Added: No borrowings were outstanding under our Revolving Credit Facility as of March 31, 2024.
+Added: A hypothetical increase in our New Term Loans borrowing rates of 150 basis points would have increased our quarterly interest expense by approximately $4,003 and would have decreased our quarterly cash flow from operations by approximately $4,003.
+Added: Foreign Currency Risk
+Added: Omni Logistics conducts business in many different countries and currencies.
+Added: Our business often results in billings issued in a country and currency that differs from that where the expenses related to the service are incurred.
+Added: In the ordinary course of business, we create numerous intercompany transactions and may have receivables, payables and currencies that are not denominated in the local functional currency.
+Added: This brings foreign exchange risk to our earnings.
+Added: The principal foreign exchange risks to which we are exposed include Chinese Yuan, Euro, Mexican Peso, Singapore Dollar and Taiwan Dollar.
+Added: Most of our transactions are denominated in the U.S.
+Added: dollar, our functional currency, and the U.S.
+Added: Dollar fluctuations relative to the other currencies in which we transact business does not have a significant effect on our operating income.
+Added: We currently do not use derivative financial instruments to manage foreign currency risk.
+Added: For other quantitative and qualitative disclosures about market risks, see “Quantitative and Qualitative Disclosures about Market Risk” in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023.
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