1 unchanged sentence
Foreign Currency Exchange Risk:
−Removed: We receive payment for substantially all of our imaging services exclusively in United States dollars.
−Removed: As a result, our financial results are unlikely to be affected by factors such as changes in foreign currency, exchange rates or weak economic conditions in foreign markets.
−Removed: We are exposed to foreign exchange risk with respect to revenues and expenses denominated in the Euro, Canadian Dollar and Hungarian Forint and Pound Sterling.
−Removed: We have Artificial Intelligence operations in the Netherlands, radiology services in the United Kingdom, and maintain research and development centers in Canada and Hungary.
−Removed: At the present time, we do not have any foreign currency exchange contracts to mitigate this risk.
−Removed: At September 30, 2023, a hypothetical 1% decline in the currency exchange rates between the U.S.
+Added: We are exposed to foreign exchange risk with respect to revenues and expenses denominated in the Pound Sterling, Euro, Canadian Dollar and Hungarian Forint.
+Added: We provide radiological services in the United Kingdom, conduct Artificial Intelligence operations in the Netherlands, and maintain research and development centers in Canada and Hungary.
+Added: We do not have any foreign currency exchange contracts to mitigate this risk.
+Added: At March 31, 2024, a hypothetical 1% decline in the currency exchange rates between the U.S.
dollar against these currencies, would have resulted in an annual increase of approximately $0.3 million in operating expenses.
Interest Rate Sensitivity :
−Removed: We pay interest on various types of debt instruments to our suppliers and lending institutions.
−Removed: The agreements entail either fixed or variable interest rates.
−Removed: Instruments which have fixed rates are mainly leases on radiology equipment.
−Removed: Variable rate interest obligations relate primarily to amounts borrowed under our outstanding credit facilities.
+Added: Our debt instruments including borrowings under our Barclays term loan and revolving credit facility and our Truist term loan and revolving credit facility bear interest at variable rates.
Accordingly, our interest expense and consequently, our earnings, are affected by changes in short term interest rates.
−Removed: However due to our purchase of the 2019 Swaps, described below, the effects of interest rate changes are limited.
−Removed: We can elect SOFR or Alternative Base Rate interest options on amounts outstanding under the First Lien Term Loans.
−Removed: At September 30, 2023, we had $708.7 million outstanding subject to a SOFR election on First Lien Term Loans and our effective rate plus applicable margin was 8.43%.
−Removed: A hypothetical 1% increase in the SOFR rates under the Restated Credit Agreement would result in an increase of $2.1 million in annual interest expense and a corresponding decrease in income before taxes, after giving effect to the payments to be received under our 2019 Swaps.
−Removed: We can elect SOFR or Base Rate interest rate options on amounts outstanding under the Truist Restated Credit and Term Loan Agreement.
−Removed: At September 30, 2023, we had $144.4 million outstanding subject to an adjusted SOFR election on the Truist Restated Credit and Agreement.
−Removed: At September 30, 2023, our effective SOFR rate plus applicable margin was 7.18%.
−Removed: A hypothetical 1% increase in the adjusted Eurodollar rates under the Truist Restated Credit Agreement would result in an increase of approximately $1.4 million in annual interest expense and a corresponding decrease in income before taxes.
−Removed: In the second quarter of 2019, we entered into four forward interest rate agreements ("2019 Swaps").
−Removed: The 2019 Swaps have total notional amounts of $500,000,000, consisting of two agreements of $50,000,000 each and two agreements of $200,000,000 each.
−Removed: The 2019 Swaps are intended to secure a constant interest rate associated with portions of our variable rate bank debt and have an effective date of October 13, 2020.
−Removed: They will mature in October 2023 for the smaller notional and October 2025 for the larger notional.
−Removed: Under these arrangements, we arranged the 2019 Swaps with locked in 1 month Term SOFR rates at 1.89% for the $100,000,000 notional and at 1.98% for the $400,000,000 notional.
−Removed: As of the effective date, we will be liable for premium payments if interest rates decline below arranged rates, but will receive payments under the 2019 Swaps if interest rates rise above the arranged rates.
+Added: We purchased the 2019 swaps to mitigate interest rate risk on a portion of our outstanding term loan debt as described below.
+Added: We can elect SOFR or Alternative Base Rate interest options on amounts outstanding under the Barclays Term Loans.
+Added: At March 31, 2024, after giving effect to the $400 million notional amount of our 2019 swaps we had $278.7 million outstanding subject to a SOFR election and our effective rate plus applicable margin was 8.57%.
+Added: A hypothetical 1% increase in the SOFR rates under the Barclay's credit facility would result in an increase of $1.2 million in annual interest expense and a corresponding decrease in income before taxes.
+Added: The 2019 Swaps secure a 1 month Term SOFR rate of 1.98% for the $400 million notional amount.
+Added: We can elect SOFR or Base Rate interest rate options on amounts outstanding under the Truist credit facility.
+Added: At March 31, 2024, we had $142.5 million outstanding subject to an adjusted SOFR election on the Truist term loan.
+Added: At March 31, 2024, our effective SOFR rate plus applicable margin was 6.93%.
+Added: A hypothetical 1% increase in the adjusted Eurodollar rates under the Truist credit facility would result in an increase of approximately $1.4 million in annual interest expense and a corresponding decrease in income before taxes.
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.