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 $60.0 million of our variable rate debt to a fixed rate of 1.291% (the “2021 Swap”).
−Removed: During the first quarter of 2023, we terminated the interest rate swap and received cash proceeds of $2.5 million which was equal to its fair value.
−Removed: Refer to Note 15 in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for further discussion about the interest rate swap.
−Removed: At September 30, 2023, we had $147.7 million of principal outstanding under the Term Loan Facility without regard to capitalized debt issuance costs.
+Added: To manage interest rate risk, we have used, and may in the future use, interest rate swap agreements.
+Added: At March 31, 2024, we had $132.5 million of principal outstanding under the Term Loan Facility without regard to capitalized debt issuance costs.
A one-percent increase in one-month SOFR would have resulted in a net increase in interest expense of $1.3 million on an annualized basis.
−Removed: At September 30, 2023, using Adjusted SOFR plus a 2.00% spread, any borrowings under the ABL Facility would have been at a 7.429% interest rate.
+Added: At March 31, 2024, using Adjusted SOFR plus a 2.00% spread, any borrowings under the ABL Facility would have been at a 7.418% interest rate.
Foreign Currency Risk
Translation of our operating cash flows denominated in foreign currencies is impacted by changes in foreign exchange rates.
−Removed: We participate in various third party and intercompany loans, payables, and receivables denominated in currencies other than the U.S.
+Added: We invoice and receive payment from many of our customers in various other currencies.
+Added: Additionally, we are party to third party and intercompany loans, payables, and receivables denominated in currencies other than the U.S.
To help reduce exposure to foreign currency fluctuation, we have incurred debt in euros in the past.
−Removed: From time to time, we may use foreign currency derivatives to hedge currency exposures when these exposures meet certain discretionary levels.
−Removed: We did not hold a position in any foreign currency derivatives as of September 30, 2023.
+Added: Various strategies to manage this risk are available to management, including producing and selling in local currencies and hedging programs.
+Added: We did not hold a position in any foreign currency derivatives as of March 31, 2024.
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.