4 unchanged sentences
Interest Rate Risk
−Removed: Our policy is to manage interest expense using a mixture of fixed and variable rate debt.
−Removed: To manage this mixture of fixed and variable rate debt effectively and mitigate interest rate risk, we may use interest rate swap agreements.
+Added: We are subject to interest rate risk due to our variable rate debt, which comprises a majority of our outstanding indebtedness.
The nature and amount of borrowings may vary as a result of future business requirements, market conditions, and other factors.
−Removed: On July 22, 2021, we entered into a fixed-rate interest rate swap agreement to change the LIBOR-based component of the interest rate on a portion of our variable rate debt to a fixed rate of 1.291% (the “2021 Swap”).
−Removed: The 2021 Swap has a notional amount of $60.0 million and a maturity date of July 31, 2024.
−Removed: The objective of the 2021 Swap is to eliminate the variability of cash flows in interest payments on the first $60.0 million of variable rate debt attributable to changes in benchmark one-month LIBOR interest rates.
−Removed: The hedged risk is the interest rate risk exposure to changes in interest payments, attributable to changes in benchmark one-month LIBOR interest rates over the interest rate swap term.
−Removed: The changes in cash flows of the interest rate swap are expected to exactly offset changes in cash flows of the variable rate debt.
−Removed: We designated the 2021 Swap as a cash flow hedge at inception.
−Removed: Cash settlements of the 2021 Swap are recognized in interest expense.
−Removed: Refer to Note 19 in the Notes to Consolidated Financial Statements included in this Annual Report for further discussion about the interest rate swap.
+Added: To manage interest rate risk, we have used, and may in the future use, interest rate swap agreements.
At December 31, 2023, we had $148.1 million of principal outstanding under the Term Loan Facility without regard to capitalized debt issuance costs.
−Removed: A one-percent increase in one-month LIBOR would have resulted in a net increase in interest expense of $0.9 million on an annualized basis.
−Removed: At December 31, 2022, using one-month LIBOR plus a 1.75% spread, the interest rate on the $1.0 million of outstanding borrowings under the ABL Facility was 6.00%.
+Added: A one-percent increase in one-month SOFR would have resulted in a net increase in interest expense of $1.5 million on an annualized basis.
+Added: At December 31, 2023, using Adjusted SOFR plus a 2.00% spread, any borrowings under the ABL Facility would have been at a 7.445% interest rate.
Foreign Currency Risk
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.