Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are primarily exposed to market risks associated with fluctuations in interest rates on our term loans, revolving loans and foreign currency exchange rates.
+Added: We are primarily exposed to market risks associated with fluctuations in interest rates on our Revolver, Acquisition Term Loan and foreign currency exchange rates.
Interest rate risk
−Removed: Our exposure to interest rate fluctuations relates primarily to our Term Loan B, Revolver and Acquisition Term Loan.
−Removed: As of March 31, 2024, we had an outstanding balance of $940.0 million on Term Loan B.
−Removed: Borrowings under the Term Loan B currently bear a floating rate of interest equal to Adjusted Term SOFR (as defined in the Term Loan B) and applicable margin of 1.75%.
−Removed: As of March 31, 2024, 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 $9.4 million, assuming that the loan balance as of March 31, 2024 is outstanding for the entire period (June 30, 2023—$9.5 million).
−Removed: As of March 31, 2024, we had an outstanding balance of $3.3 billion under the Acquisition Term Loan.
−Removed: Borrowings under the Acquisition Term Loan bear a floating interest rate of 2.75% plus Adjusted Term SOFR.
−Removed: As of March 31, 2024, 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 $32.9 million, assuming that the loan balance as of March 31, 2024 is outstanding for the entire period (June 30, 2023—$35.7 million).
−Removed: For more information regarding the impact of SOFR rates, see “Stress in the global financial system may adversely affect our finances and operations” included within Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for Fiscal 2023.
+Added: Our exposure to interest rate fluctuations relates primarily to our Revolver and Acquisition Term Loan.
+Added: As of September 30, 2024, we had an outstanding balance of $2.2 billion under the Acquisition Term Loan.
+Added: Borrowings under the Acquisition Term Loan bear a floating interest rate of 2.25% plus Term SOFR (as defined in the Acquisition Term Loan).
+Added: As of September 30, 2024, 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 $22.1 million, assuming that the loan balance as of September 30, 2024 is outstanding for the entire period (June 30, 2024—$22.2 million).
+Added: For more information regarding the impact of SOFR, see “Stress in the global financial system may adversely affect our finances and operations” included within Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for Fiscal 2024.
Foreign currency risk
5 unchanged sentences
We have hedged certain of our Canadian dollar foreign currency exposures relating to our payroll expenses in Canada.
−Removed: Based on the CAD foreign exchange forward contracts outstanding as of March 31, 2024, a one cent change in the Canadian dollar to U.S.
+Added: Based on the CAD foreign exchange forward contracts outstanding as of September 30, 2024, a one cent change in the Canadian dollar to U.S.
dollar exchange rate would have caused a change of $0.6 million in the mark-to-market valuation on our existing foreign exchange forward contracts (June 30, 2024—$0.7 million).
4 unchanged sentences
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.
−Removed: Based on the 5-year EUR/USD cross currency swaps outstanding as of March 31, 2024, a one cent change in the Euro to U.S.
+Added: Based on the 5-year EUR/USD cross currency swaps outstanding as of September 30, 2024, a one cent change in the Euro to U.S.
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, 2024—$7.2 million).
−Removed: Based on the 7-year EUR/USD cross currency swaps outstanding as of March 31, 2024, a one cent change in the Euro to U.S.
+Added: Based on the 7-year EUR/USD cross currency swaps outstanding as of September 30, 2024, a one cent change in the Euro to U.S.
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, 2024—$7.6 million).
4 unchanged sentences
dollars for a significant portion of the cash held by these subsidiaries is subject to translation variance caused by changes in foreign currency exchange rates as of the end of each respective reporting period (the offset to which is recorded to Accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets).
−Removed: The following table shows our cash and cash equivalents denominated in certain major foreign currencies as of March 31, 2024 (equivalent in U.S.
+Added: The following table shows our cash and cash equivalents denominated in certain major foreign currencies as of September 30, 2024 (equivalent in U.S.
(In thousands) U.S.
Equivalent at
−Removed: March 31, 2024
+Added: September 30, 2024
Equivalent at
12 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.