4 unchanged sentences
The nature and amount of our debt may vary as a result of future business requirements, market conditions and other factors.
−Removed: A hypothetical 100 basis point increase or decrease in interest rates on total borrowings on our revolving credit facility and variable rate long-term debt, net of the impact of the interest rate swap, would have resulted in approximately a $2.5 million and $1.1 million increase or decrease in pre-tax income for the fiscal year ended June 30, 2023 and 2022, respectively.
+Added: A hypothetical 100 basis point increase or decrease in interest rates on total borrowings on our revolving credit facility and variable rate long-term debt, net of the impact of interest rate swaps, would have resulted in approximately a $1.0 million and $2.5 million increase or decrease in pre-tax income for the fiscal years ended June 30, 2024 and June 30, 2023 , respectively.
We evaluate our interest rate risk and utilize interest rate swaps to mitigate the risk of interest rate fluctuations associated with our current and long-term debt.
−Removed: At June 30, 2023 and 2022, we had $329.9 million and $271.2 million, respectively, in variable rate debt.
+Added: At June 30, 2024 and June 30, 2023 , we had $144.1 million and $329.9 million, respectively, in variable rate debt.
We entered into an interest rate swap on April 30, 2019, which was amended on September 28, 2022.
−Removed: The interest rate swap has a notional amount of $100.0 million, with a $50.0 million tranche scheduled to mature on April 30, 2024 and a $50.0 million tranche scheduled to mature April 30, 2026.
+Added: The interest rate swap has a notional amount of $100.0 million, of which a $50.0 million tranche matured on April 30, 2024 and the remaining $50.0 million tranche is scheduled to mature on April 30, 2026.
We entered into an additional interest rate swap on March 31, 2023 to lock into a fixed SOFR interest rate.
−Removed: The interest rate swap has notional amount of $25 million and a maturity date of March 31, 2028.
+Added: The interest rate swap has a notional amount of $25 million and a maturity date of March 31, 2028.
The purpose of these interest rate swaps is to manage or hedge our exposure to floating rate debt and achieve a desired proportion of fixed versus floating rate debt.
−Removed: Our use of derivative instruments have the potential to expose us to certain market risks including the possibility of (1) our hedging activities not being as effective as anticipated in reducing the volatility of our cash flows, (2) the counterparty not performing its obligations under the applicable hedging arrangement, (3) the hedging arrangement being imperfect or ineffective or (4) the terms of the swap or associated debt changing.
−Removed: We seek to lessen such risks by having established a policy to identify, control and manage market risks which may arise from changes in interest rates, as well as limiting our counterparties to major financial institutions.
+Added: Our use of derivative instruments have the potential to expose us to certain market risks including the possibility of (1) our hedging activities not being as effective as anticipated in reducing the volatility of our cash flows, (2) the counterparties not performing their obligations under the applicable hedging arrangement, (3) the hedging arrangement being imperfect or ineffective or (4) the terms of the swaps or associated debt changing.
+Added: We seek to manage such risks through our policy of identifying, controlling and managing market risks, and by otherwise limiting our counterparties for certain transactions to major financial institutions.
Foreign Currency Exchange Rate Risk
−Removed: We are exposed to foreign currency risks that arise from our foreign operations in Canada, Brazil and the UK.
+Added: We are exposed to foreign currency risks that arise from our foreign operations in Canada and Brazil.
These risks include transactions denominated in non-functional currencies and intercompany loans with foreign subsidiaries.
1 unchanged sentence
In addition, exchange rate fluctuations may cause our international results to fluctuate significantly when translated into U.S.
−Removed: A hypothetical 10% increase or decrease in foreign exchange rates would have resulted in approximately a $2.7 million and $2.2 million increase or decrease in pre-tax income for fiscal years ended June 30, 2023 and 2022, respectively.
+Added: A hypothetical 10% increase or decrease in foreign exchange rates would have resulted in approximately a $0.1 million and $2.7 million increase or decrease in pre-tax income for fiscal years ended June 30, 2024 and June 30, 2023 , respectively.
These risks may change over time as business practices evolve and could have a material impact on our financial results in the future.
7 unchanged sentences
We have elected not to designate our foreign currency contracts as hedging instruments, and therefore, the instruments are marked-to-market with changes in their values recorded in the consolidated income statement each period.
−Removed: Our foreign currencies are primarily Brazilian reais, British pounds and Canadian dollars.
−Removed: At June 30, 2023 and 2022, the fair value of our currency forward contracts were a net asset or payable of less than $0.1 million.
+Added: Our foreign currencies are primarily Brazilian reais and Canadian dollars.
+Added: At June 30, 2024 and June 30, 2023 , the fair value of our currency forward contracts were a net asset or payable of less th an $0.1 million.
Index to Financial Statements
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.