Quantitative and Qualitative Disclosure about Market Risk
−Removed: Figures are presented in thousands, except percentages, rates and unless otherwise noted.
We have operations within the United States and internationally, and we are exposed to market risks in the ordinary course of our business.
1 unchanged sentence
Interest Rate Risk
−Removed: We are exposed to market risk from changes in interest rates on our Term Loan and our Revolving Facility, which accrues interest at a variable rate.
−Removed: The interest rate on our Term Loan is the adjusted Term Secured Overnight Financing Rate (“Term SOFR”) plus 4.75%.
−Removed: The interest rate on our Revolving Facility is the Term SOFR plus 2.5%.
−Removed: As of December 31, 2022 (Successor), $415,000 aggregate face value was outstanding on our Term Loan and $50,000 was outstanding on our Revolving Facility.
−Removed: We have not used any derivative financial instruments to manage our interest rate risk exposure from our Term Loan and Revolving Facility.
−Removed: Based upon the short-term investment amount as of December 31, 2022, a hypothetical one percentage point increase or decrease in the interest rate of our Term Loan and our Revolving Facility would result in a corresponding increase or decrease in interest expense of approximately $4,150 annually.
+Added: We are exposed to market risk from changes in interest rates on our Term Loan and our 2022 Revolving Facility, both of which accrue interest at a variable rate.
+Added: The interest rate on our Term Loan is the adjusted Secured Overnight Financing Rate (“SOFR”) plus 4.75%.
+Added: As of December 31, 2023, $365.0 million was outstanding on our Term Loan.
+Added: We have not used any derivative financial instruments to manage our interest rate risk exposure with respect to our Term Loan.
+Added: As of December 31, 2023, a hypothetical one percentage point increase or decrease in the variable interest rate of our Term Loan and our 2022 Revolving Facility would result in a corresponding increase or decrease in interest expense of approximately $3.7 million annually.
Foreign Currency Exchange Rate Risk
−Removed: We have foreign currency exchange risk related to transactions denominated in currencies other than the U.S.
−Removed: Dollar, principally the Canadian Dollar.
−Removed: The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy.
−Removed: As of December 31, 2022, an immediate 10% adverse change in foreign exchange rates on foreign-denominated accounts would result in a foreign currency loss of approximately $13,065.
−Removed: In the event our non-U.S.
−Removed: Dollar denominated sales and expenses increase, our operating results may be more greatly affected by exchange rate fluctuations.
+Added: The majority of our revenue is denominated in U.S.
+Added: however, we do earn revenue, pay expenses, own assets and incur liabilities in countries using currencies other than the U.S.
+Added: dollar, primarily the Euro and Canadian dollar.
+Added: Because our consolidated financial statements are presented in U.S.
+Added: dollars, we must translate revenue, income and expenses, as well as assets and liabilities, into U.S.
+Added: dollars at exchange rates in effect during or at the end of each reporting period.
+Added: Therefore, increases or decreases in the value of the U.S.
+Added: dollar against other currencies will affect our statements of operations and the value of balance sheet items denominated in foreign currencies.
+Added: We generally do not mitigate the risks associated with fluctuating exchange rates because we typically incur expenses and generate revenue in these currencies and the cumulative impact of these foreign exchange fluctuations are not deemed material to our financial performance.
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