4 unchanged sentences
We are subject to market risk by way of changes in interest rates on borrowings under our inventory financing facilities.
−Removed: As of December 31, 2023, the Company had total outstanding balances on our asset-backed debt of $2.2 billion, with an average duration of 2.6 years.
−Removed: Total interest expense for the year ended December 31, 2023 was $174 million, of which $156 million was fixed and $18 million was floating.
−Removed: As of December 31, 2023, 100% of our outstanding borrowings were at a fixed rate and did not utilize floating benchmark reference rates.
−Removed: As of December 31, 2022, we had outstanding borrowings of $1.4 billion, which bore interest at floating benchmark reference rates based on the secured overnight financing rate (“SOFR”), plus an applicable margin.
+Added: As of December 31, 2024, we had total outstanding balances on our asset-backed debt of $1.9 billion, 91% of which was based on a fixed rate with an average duration of 1.8 years and the remaining 9% of which was based on a floating rate.
+Added: Total property financing interest expense for the year ended December 31, 2024 was $116 million, of which $105 million was fixed and $11 million was floating.
Accordingly, fluctuations in market interest rates may increase or decrease our interest expense.
We may use interest rate cap derivatives, interest rate swaps, or other interest rate hedging instruments to economically hedge and manage interest rate risk with respect to our variable floating rate debt.
−Removed: Many of our floating rate debt facilities also had benchmark rate floors.
−Removed: Assuming no change in the outstanding borrowings on our credit facilities as of December 31, 2023, we estimate that a one percentage point increase in applicable benchmark rates would not have resulted in an impact on our annual interest expense.
−Removed: However, we would be subject to fluctuation in interest rates in the future if we draw down under our senior revolving credit facilities.
−Removed: Assuming no change in the outstanding borrowings on our credit facilities as of December 31, 2022, we estimate that a one percentage point increase in the applicable benchmark rate would have increased our annual interest expense by approximately $14 million.
+Added: Many of our floating rate debt facilities also have benchmark rate floors.
+Added: Assuming no change in the outstanding borrowings on our credit facilities, we estimate that a one percentage point increase in applicable benchmark rates would increase our annual interest expense by approximately $2 million as of December 31, 2024.
+Added: As of December 31, 2023, 100% of our outstanding borrowings were at a fixed rate and did not utilize floating benchmark reference rates.
Inflation Risk
−Removed: We believe the inflation experienced in 2022, which is still ongoing, has impacted the cost of goods and services that we consume, such as labor and materials costs for home repairs.
−Removed: We endeavor to offset these impacts in our business through appropriately considering them in our pricing and operational models.
+Added: We believe the inflation experienced in recent years has impacted the cost of goods and services that we consume, such as labor and materials costs for home repairs.
+Added: Moreover, the current U.S.
+Added: presidential administration has implemented tariffs on imports from Canada, Mexico, and China, and has promoted plans for potential tariffs on goods from other countries and to pursue other trade policies intended to restrict imports, which may further increase the cost of materials for home repairs.
+Added: We endeavor to offset these impacts in our business by appropriately considering them in our pricing and operational models.
However, if our costs were to become subject to significant incremental inflationary pressure, we may not be able to fully offset such higher costs by adjusting our operational model or our pricing methodology.
Our inability to do so could harm our business, results of operations, and financial condition.
+Added: In response to ongoing inflationary pressures in the U.S., the Federal Reserve implemented a number of increases to the federal funds rate since 2022, which, despite the Federal Reserve’s 50 basis point cut in September 2024 and 25 basis point cuts in November and December 2024, remains elevated compared to historical levels.
+Added: See “Part I – Item 2.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations – Current Housing Environment” for a discussion of the impact of the increased federal funds rate on mortgage interest rates and our business.
OPENDOOR TECHNOLOGIES INC.
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.