QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our exposure relative to market risk is due to foreign exchange risk and interest rate risk.
+Added: Our exposures relative to market risk are due to foreign exchange risk and interest rate risk.
Foreign Exchange Risk
4 unchanged sentences
Dollar relative to all other major cu rrencies.
−Removed: As of December 31, 2022, in the event of a 10% strengthening of the U.S.
−Removed: Dollar, the change in fair value of all forward contracts would result in a $2.0 million increase in the fair value of the forward contracts;
−Removed: whereas a 10% weakening of the U.S.
−Removed: Dollar would result in a $2.1 million decr ease of the fair value of the forward contracts.
+Added: As of July 1, 2023, in the event of a 10% strengthening of the U.S.
+Added: Dollar, the change in fair value of all forward contracts would result in a $3.4 million increase in the fair value of the forward contracts, whereas a 10% weakening of the U.S.
+Added: Dollar would result in a $3.7 million decr ease in the fair value of the forward contracts.
Interest Rate Risk
Our exposure to changes in interest rates is associated with borrowings under our credit facilities, all of which is variable rate debt.
−Removed: Total outstanding debt under our Revised Credit Facilities as of December 31, 2022 was $276.5 million with an interest rate of 6.0% based on prevailing Term SOFR rates.
+Added: Total outstanding debt under our Revised Credit Facilities as of July 1, 2023 was $273.0 million with an effective interest rate of 6.6% based on prevailing Term SOFR rates.
An increase of 100 basis points in Term SOFR rates would result in additional annual interest expense of $0.5 million .
−Removed: In September 2022, we modified our two existing interest rate swaps to align to Term SOFR rather than LIBOR and entered into four additional interest rate swaps to effectively convert $194.8 million of borrowings under our Revised Credit Facilities from a variable rate to a fixed rate.
+Added: As of July 1, 2023 , the notional amount on our two active in terest rate swap agreements to effectively convert borrowings under our Credit Facilities from a variable rate to a fixed rate were $219.1 million.
These interest rate swaps are intended to mitigate the exposure to fluctuations in interest rates and qualify for hedge accounting treatment as cash flow hedges.
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.