QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
+Added: In the normal course of business, we are exposed to foreign currency exchange rate and interest rate risks that could impact our financial position and results of operations.
+Added: Foreign Currency
We are exposed to foreign currency risk primarily related to our foreign subsidiaries.
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Accordingly, changes in foreign currency rates vs.
−Removed: dollar, euro or Swiss franc generally do not impact local cash flows.
−Removed: Intercompany transactions which create transactional foreign currency risk include services, royalties, loans, contributions and distributions.
−Removed: On November 2, 2023, the Company entered into a foreign currency forward contract with a notional amount of €90 million to manage the foreign currency risk associated with the sale of our EMEA staffing operations, which was completed in the first quarter of 2024.
−Removed: This contract is not designated as a hedging instrument;
−Removed: therefore, it is marked-to-market and the changes in fair value are recognized in earnings.
+Added: dollar and euro generally do not impact local cash flows.
+Added: Intercompany transactions which create foreign currency risk include services, royalties, loans, contributions and distributions.
+Added: On November 2, 2023, the Company entered into a foreign currency forward contract with a notional amount of €90.0 million to manage the foreign currency risk associated with the sale of our EMEA staffing operations, which was completed on January 2, 2024.
+Added: This contract was not designated as a hedging instrument;
+Added: therefore, it was marked-to-market and the changes in fair value were recognized in earnings.
+Added: An unrealized loss of $3.6 million associated with the forward contract was recorded as of year-end 2023.
A total loss of $2.4 million was realized upon settlement on January 5, 2024;
−Removed: An unrealized loss of $3.6 million associated with the forward contract was recorded as of December 31, 2023;
−Removed: therefore, the Company will record a gain of $1.2 million in the first quarter of 2024.
−Removed: In addition, we are exposed to interest rate risks through our use of the multi-currency line of credit and other borrowings.
+Added: therefore, the Company recorded a gain of $1.2 million in the first quarter of 2024 (see Fair Value Measurements footnote in the notes to our consolidated financial statements for more details).
+Added: On February 8, 2024, the Company entered into a foreign currency forward contract with a notional amount of €17.0 million to manage the foreign currency risk associated with the expected additional proceeds related to the sale of our EMEA staffing operations (see Acquisitions and Dispositions footnote in the notes to our consolidated financial statements).
+Added: The expected proceeds are recorded as a euro-denominated receivable which is remeasured each period.
+Added: The forward contract was designated as a fair value hedge, with the mark-to-market changes of the forward contract offsetting the mark-to-market changes of the receivable in the gain on sale of EMEA staffing operations in the consolidated statement of earnings.
+Added: In the fourth quarter of
+Added: 2024, the Company settled the contract with a $0.4 million cash payment and recognized a corresponding loss of $0.4 million on the contract.
+Added: As of year-end 2024, there is no asset or liability related to the forward contract (see Fair Value Measurements footnote in the notes to our consolidated financial statements for more details).
+Added: Interest Rates
+Added: We are exposed to interest rate risks through our use of our credit facilities and other local borrowings, when applicable.
+Added: Following our acquisition of MRP, the Company has long-term borrowings on our credit facilities.
+Added: On July 17, 2024, we entered into a $50.0 million 12-month interest rate swap and a $50.0 million 18-month interest rate swap that effectively locked in the variable SOFR component of our interest rate for a portion of the long-term borrowings on the Securitization Facility at a fixed rate of 4.772% and 4.468% from the effective date through July 17, 2025 and January 17, 2026, respectively.
A hypothetical fluctuation of 10% of market interest rates would not have had a material impact on 2024 earnings.
6 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.