3 unchanged sentences
Interest Rate Risk
−Removed: We have exposure to changes in interest rates associated with borrowings under our senior secured credit facility, which has variable interest rates tied to Term SOFR or an alternate base rate, at our option.
+Added: We have exposure to changes in interest rates associated with borrowings under our bank credit facility, which have variable interest rates tied to Term SOFR or an alternate base rate, at our option.
At December 31, 2023, we had borrowings outstanding under the credit facility totaling $324.0 million that carried a weighted average interest rate of 4.2%, including the impact of the interest rate swaps described below.
−Removed: A hypothetical 100 basis point change in the interest rate as of December 31, 2022 would have a $0.9 million effect on our pretax income on an annualized basis, including the effect of the interest rate swaps.
−Removed: At December 31, 2021, we had borrowings outstanding under the credit facility totaling $230.0 million that carried a weighted average interest rate of 2.7%, including the impact of the interest rate swaps.
−Removed: A hypothetical 100 basis point change in the interest rate would have had a $0.3 million effect on our full year pretax income, including the effect of the interest rate swaps and our borrowings outstanding as of December 31, 2021.
+Added: A hypothetical 100 basis point change in the interest rate would have a $0.7 million effect on our pretax income on an annualized basis, including the effect of the interest rate swaps.
+Added: At December 31, 2022, we had borrowings outstanding under the credit facility totaling $290.0 million that carried a weighted average interest rate of 3.8%, including the impact of the interest rate swaps described below.
+Added: A hypothetical 100 basis point change in the interest rate would have had a $0.9 million effect on our pretax income on an annualized basis, including the effect of the interest rate swaps.
We enter into forward interest rate swap agreements to hedge against the interest rate risks of our variable-rate borrowings.
Under the terms of the interest rate swap agreement, we receive from the counterparty interest on the notional amount based on one month Term SOFR and we pay to the counterparty a stated, fixed rate.
−Removed: As of December 31, 2022 and December 31, 2021, the aggregate notional amount of our forward interest rate swap agreements was $200.0 million.
−Removed: The outstanding interest rate swap agreements as of December 31, 2022 are scheduled to mature on a staggered basis through August 31, 2027.
+Added: As of December 31, 2023 and 2022, the aggregate notional amount of our forward interest rate swap agreements was $250.0 million and $200.0 million, respectively.
+Added: The outstanding interest rate swap agreements as of December 31, 2023 are scheduled to mature on a staggered basis through February 29, 2028.
Foreign Currency Risk
2 unchanged sentences
We hedge a portion of our cash flow exposure related to our INR-denominated intercompany expenses by entering into non-deliverable foreign exchange forward contracts.
−Removed: These foreign exchange forward contracts have an aggregate notional amount of INR
−Removed: 657.9 million, or $8.0 million based on the exchange rate in effect as of December 31, 2022, and are scheduled to mature monthly through September 2023.
+Added: As of December 31, 2023 and 2022, the aggregate notional amounts of these contracts were INR 1,375.7 million, or $16.6 million, and INR 657.9 million, or $8.0 million, respectively, based on the exchange rates in effect as of each period end.
+Added: The outstanding foreign exchange forward contracts as of December 31, 2023 are scheduled to mature monthly through December 31, 2024.
We use a sensitivity analysis to determine the effects that market foreign currency exchange rate fluctuations may have on the fair value of our foreign currency exchange rate hedge portfolio.
1 unchanged sentence
This sensitivity analysis represents the hypothetical changes in value of the hedge position and does not reflect the offsetting gain or loss on the underlying exposure.
−Removed: A hypothetical 100 basis point change in the foreign currency exchange rate between the USD and INR would have an immaterial impact on the fair value of our hedge instruments as of December 31, 2022.
+Added: A hypothetical 100 basis point change in the foreign currency exchange rate between the USD and INR would have an immaterial impact on the fair value of our hedge instruments as of December 31, 2023 and 2022.
We have a 1.69% convertible debt investment in Shorelight Holdings, LLC, a privately-held company, which we account for as an available-for-sale debt security.
−Removed: As such, the investment is carried at fair value with unrealized holding gains and losses excluded from earnings and reported in other comprehensive income.
+Added: As such, the investment is carried at fair value with unrealized holding gains and losses excluded from earnings and
+Added: reported in other comprehensive income.
As of December 31, 2023, the fair value of the investment was $68.0 million, with a total cost basis of $40.9 million.
At December 31, 2022, the fair value of the investment was $57.6 million, with a total cost basis of $40.9 million.
−Removed: We have a preferred stock investment in Medically Home Group, Inc.
−Removed: ("Medically Home"), a privately-held company, which we account for as an equity security without a readily determinable fair value using the measurement alternative.
−Removed: As such, the investment is carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment.
−Removed: Any unrealized holding gains and losses resulting from observable price changes are recorded in our consolidated statement of operations.
−Removed: As of December 31, 2022, the carrying value of the investment was $33.6 million, with a total cost basis of $5.0 million.
−Removed: As of December 31, 2021, the carrying value of the investment was $6.7 million, with a total cost basis of $5.0 million.
−Removed: During the first quarter of 2022, we recognized an unrealized gain of $27.0 million on our preferred stock investment resulting from an observable price change of preferred stock with similar rights and preferences to our preferred stock investment issued by Medically Home.
−Removed: Following our purchase, we have not identified any impairment of our investment.
+Added: We have a preferred stock investment in a privately-held hospital-at-home company, which we account for as an equity security without a readily determinable fair value using the measurement alternative.
+Added: As such, the investment is carried at cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment.
+Added: As of December 31, 2023 and 2022, the carrying value of the investment was $7.4 million and $33.6 million, respectively, with a total cost basis of $5.0 million.
+Added: In the fourth quarter of 2023, we recognized a non-cash impairment loss of $26.3 million on our preferred stock investment based on the valuation established in a new round of financing expected to close in early 2024.
+Added: During the first quarter of 2022, we recognized a non-cash unrealized gain of $27.0 million, based on the observable price change of preferred stock issued by the company with similar rights and preferences to our preferred stock investment, a Level 2 input.
+Added: The non-cash impairment loss and unrealized gain were recorded to other income (expense), net in our consolidated statement of operations.
We do not use derivative instruments for trading or other speculative purposes.
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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.