2 unchanged sentences
Interest rate risk
−Removed: Our exposure to interest rate fluctuations relate primarily to our Term Loan B and the Revolver.
−Removed: As of June 30, 2022, we had an outstanding balance of $957.5 million on Term Loan B.
−Removed: Term Loan B bears a floating interest rate of 1.75% plus LIBOR.
−Removed: As of June 30, 2022, an adverse change of one percent on the interest rate would have the effect of increasing our annual interest payment on Term Loan B by approximately $9.6 million, assuming that the loan balance as of June 30, 2022 is outstanding for the entire period (June 30, 2021—$9.7 million).
−Removed: As of June 30, 2022, we had no outstanding balance under the Revolver.
−Removed: Borrowings under the Revolver bear interest per annum at a floating rate of LIBOR plus a fixed rate that is dependent on our consolidated net leverage ratio ranging from 1.25% to 1.75%.
−Removed: As of June 30, 2022, with no outstanding balance on the Revolver, an adverse change of one percent on the interest rate would have no effect on our annual interest payment (June 30, 2021—nil).
−Removed: For more information regarding the impact and discontinuance of LIBOR, see “Stress in the global financial system may adversely affect our finances and operations in ways that may be hard to predict or to defend against” included within Part I, Item 1A, “Risk Factors” on this Annual Report on Form 10-K.
+Added: Our exposure to interest rate fluctuations relates primarily to our Term Loan B, Revolver and Acquisition Term Loan.
+Added: As of June 30, 2023, we had an outstanding balance of $947.5 million on the Term Loan B.
+Added: Borrowings under the Term Loan B currently bear a floating rate of interest equal to Term SOFR plus the SOFR Adjustment (as defined in the Term Loan B) and applicable margin of 1.75%.
+Added: As of June 30, 2023, an adverse change of 100 basis points on the interest rate would have the effect of increasing our annual interest payment on Term Loan B by approximately $9.5 million, assuming that the loan balance as of June 30, 2023 is outstanding for the entire period (June 30, 2022—$9.6 million).
+Added: As of June 30, 2023, we had an outstanding balance of $275 million under the Revolver.
+Added: Borrowings under the Revolver currently bear interest per annum at a floating rate of interest equal to Term SOFR plus the SOFR Adjustment (as defined in the Revolver) and a fixed margin dependent on our consolidated net leverage ratio ranging from 1.25% to 1.75%.
+Added: As of June 30, 2023, an adverse change of 100 basis points on the interest rate would have the effect of increasing our annual interest payment on the Revolver by approximately $2.8 million, assuming the loan balance as of June 30, 2023 is outstanding for the entire period (June 30, 2022—nil).
+Added: As of June 30, 2023, we had an outstanding balance of $3.6 billion under the Acquisition Term Loan.
+Added: Borrowings under the Acquisition Term Loan currently bear a floating rate of interest equal to Term SOFR plus the SOFR Adjustment (as defined in the Acquisition Term Loan) and applicable margin of 3.50%.
+Added: As of June 30, 2023, an adverse change of 100 basis points on the interest rate would have the effect of increasing our annual interest payment on the Acquisition Term Loan by approximately $35.7 million, assuming that the loan balance as of June 30, 2023 is outstanding for the entire period (June 30, 2022—nil).
Foreign currency risk
4 unchanged sentences
Our ultimate realized gain or loss with respect to foreign currency exposures will generally depend on the size and type of cross-currency transactions that we enter into, the currency exchange rates associated with these exposures and changes in those rates.
−Removed: Additionally, we have hedged certain of our Canadian dollar foreign currency exposures relating to our payroll expenses in Canada.
−Removed: Based on the foreign exchange forward contracts outstanding as of June 30, 2022, a one cent change in the Canadian dollar to U.S.
−Removed: dollar exchange rate would have caused a change of $0.5 million in the mark to market on our existing foreign exchange forward contracts (June 30, 2021—$0.7 million).
+Added: We have hedged certain of our Canadian dollar foreign currency exposures relating to our payroll expenses in Canada.
+Added: Based on the CAD foreign exchange forward contracts outstanding as of June 30, 2023, a one cent change in the Canadian dollar to U.S.
+Added: dollar exchange rate would have caused a change of $0.7 million in the mark-to-market valuation on our existing foreign exchange forward contracts (June 30, 2022—$0.5 million).
+Added: Additionally, in connection with the Micro Focus Acquisition, in August 2022, we entered into certain derivative transactions to meet certain foreign currency obligations related to the purchase price of the Micro Focus Acquisition, mitigate the risk of foreign currency appreciation in the GBP denominated purchase price and mitigate the risk of foreign currency appreciation in the EUR denominated existing debt held by Micro Focus.
+Added: We entered into the following derivatives:
+Added: (i) three deal-contingent forward contracts, (ii) a non-contingent forward contract, and (iii) EUR/USD cross currency swaps.
+Added: In connection with the closing of the Micro Focus Acquisition the deal-contingent forward and non-deal contingent forward contracts were settled and we designated the 7-year EUR/USD cross currency swaps as net investment hedges.
+Added: Based on the 5-year EUR/USD cross currency swaps outstanding as of June 30, 2023, a one cent change in the Euro to U.S.
+Added: dollar forward exchange rate would have caused a change of $7.3 million in the mark-to-market valuation on our existing cross currency swap (June 30, 2022—nil).
+Added: Based on the 7-year EUR/USD cross currency swaps outstanding as of June 30, 2023, a one cent change in the Euro to U.S.
+Added: dollar forward exchange rate would have caused a change of $7.8 million in the mark-to-market valuation on our existing cross currency swaps (June 30, 2022—nil).
Foreign currency translation risk
11 unchanged sentences
British Pound 69,108 44,020
−Removed: Canadian Dollar 14,640 26,632
+Added: Indian Rupee 57,199 38,247
Swiss Franc 53,122 48,674
4 unchanged sentences
If overall foreign currency exchange rates in comparison to the U.S.
−Removed: dollar uniformly weakened by 10%, the amount of cash and cash equivalents we would report in equivalent U.S.
+Added: dollar uniformly weakened by 10%, the amount of
+Added: cash and cash equivalents we would report in equivalent U.S.
dollars would decrease by $59.8 million (June 30, 2022—$48.9 million), assuming we have not entered into any derivatives discussed above under “Foreign Currency Transaction Risk.”
4 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.