QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
−Removed: We have interest rate and foreign exchange rate risk exposure but no long-term fixed rate investments.
+Added: We have interest rate and foreign exchange rate risk exposure.
Our primary interest rate risk is due to potential fluctuations of interest rates for our variable rate borrowings.
13 unchanged sentences
RISK FACTORS, our financial condition and results of operations could be adversely affected by currency fluctuations.
+Added: Foreign Currency Exchange Rate Risk.
+Added: We use forward foreign exchange contracts to reduce the effect of fluctuations in foreign exchange rates on the remeasurement of foreign currency denominated receivables and payables.
+Added: Interest Rate Risk.
+Added: The Company utilizes an interest rate swap contract to create fixed interest payments on portions of its variable rate debt instrument in order to manage exposure to fluctuations in interest rates.
+Added: As of May 31, 2024 and when including our interest rate swap, approximately 33.3% of our total debt was at variable interest rates.
The following table sets forth the potential loss in future earnings or fair values, resulting from hypothetical changes in relevant market rates or prices:
2 unchanged sentences
(dollars in thousands)
−Removed: Foreign Currency —
−Removed: 10% Decrease in exchange rates
−Removed: Foreign Currency —
−Removed: 10% Decrease in exchange rates
+Added: Foreign Currency — Revenue
+Added: 10% depreciation in exchange rates relative to USD
+Added: Foreign Currency — Hedges
+Added: 10% depreciation in exchange rates relative to USD
Interest Income
−Removed: 10% Decrease in interest rates
+Added: 75 basis point decrease in interest rates
Interest Expense
−Removed: 10% Increase in interest rates
+Added: 75 basis point increase in interest rates
+Added: These estimates assume a parallel shift in all currency exchange rates and, as a result, may overstate the potential impact to earnings because currency exchange rates do not typically move all in the same direction.
+Added: In addition to transactional exposures, our operating results are impacted by the translation of our foreign operating income into U.S.
+Added: In fiscal year 2024, international revenues accounted for 49.7% of our consolidated net revenues.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The response to this item is submitted in a separate section of this report starting on page F-1.
−Removed: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE—NONE
+Added: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE—NONE
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.