Quantitative and Qualitative Disclosures About Market Risk
−Removed: The Company is exposed to market risk related to interest rates, foreign currencies and impairment risk.
+Added: In the normal course of business, the Company is exposed to market risk related to interest rates, foreign currencies and impairment risk.
Debt Instruments:
−Removed: At December 31, 2021, the Company’s debt obligations consisted of amounts outstanding under its revolving credit agreement and the 5.625% Notes.
+Added: At December 31, 2022, the Company’s debt obligations consisted of amounts outstanding under its Combined Credit Agreement and the 5.625% Notes.
The 5.625% Notes bear a fixed 5.625% interest rate.
−Removed: The revolving credit agreement bears interest at variable rates based upon the U.S.
−Removed: bank prime rate, U.S.
−Removed: base rate, LIBOR or its replacement SOFR, EURIBOR, and SONIA depending on the duration of the borrowing product.
+Added: The revolving credit agreement bears interest at variable rates based upon SOFR, EURIBOR, and SONIA depending on the duration of the borrowing product.
The Company’s ability to obtain the required bank syndication commitments depends in part on conditions in the bank market at the time of syndication.
−Removed: Given that there were $110.2 million in borrowings under the revolving credit agreement, as of December 31, 2021, a 1.0% increase or decrease in the weighted average interest rate, which was 0.88% at December 31, 2021, would have had an interest impact of approximately $0.4 million.
+Added: On April 28, 2022, the Company amended the Combined Credit Agreement.
+Added: This amendment replaced references to LIBOR with references to SOFR.
+Added: With regard to our variable rate debt, a 10% increase or decrease in interest rates would change our annual interest expense by $0.9 million.
Foreign Exchange:
4 unchanged sentences
dollar of the revenue and expenses of its non-U.S.
−Removed: The effects of currency exchange rate fluctuations on the translation of the Company’s results of operations are discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 2 of the Notes included herein.
+Added: The effects of currency exchange rate fluctuations on the translation of the Company’s results of operations are discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 2 of the Company’s Audited Consolidated Financial Statements included in this 2022 Form 10-K.
For the most part, revenues and expenses incurred related to the non-U.S.
operations are denominated in their functional currency.
−Removed: This minimizes the impact that fluctuations in exchange rates will have on profit margins.
+Added: This reduces the impact that fluctuations in exchange rates will have on profit margins.
Translation of intercompany debt, which is not intended to be repaid, is included in cumulative translation adjustments.
2 unchanged sentences
Impairment Risk:
−Removed: At December 31, 2021, the Company did not have any impairment of goodwill.
+Added: For the year ended December 31, 2022, the Company recognized an impairment and other losses charge of $122.2 million, primarily related to the impairment of goodwill, right-of-use leases assets and intangible assets.
+Added: The Company recognized an impairment charge of $116.7 million to write-down the carrying value of goodwill in excess of the fair value.
The Company reviews goodwill for impairment annually as of October 1st of each year or more frequently if indicators of potential impairment exist.
−Removed: See the Significant Accounting Policies in Note 2 of the Notes included herein for information related to impairment testing and the risk of potential impairment charges in future periods.
+Added: To the extent that, among other factors, (i) there is underperformance in one or more reporting units (ii) a potential recession further disrupts the economic environment or (iii) interest rates continue to rise in response to persistent inflation, the fair value of one or more of the reporting units could fall below their carrying value, resulting in a goodwill impairment charge.
+Added: In addition, the Company recorded an impairment charge of $1.4 million to reduce the carrying value of intangible assets and $2.6 million to reduce the carrying value of four right-of-use lease assets and related leasehold improvements.
+Added: See the Critical Accounting Estimates section in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for information related to impairment testing and the risk of potential impairment charges in future periods.
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.