8 unchanged sentences
dollar/Mexican peso, and the Australian dollar/Philippine peso.
−Removed: We enter into interest rate derivative instruments to reduce our exposure to interest rate fluctuations associated with our variable rate debt.
To mitigate against credit and non-performance risk, it is our policy to only enter into derivative contracts and other financial instruments with investment grade counterparty financial institutions and, correspondingly, our derivative valuations reflect the creditworthiness of our counterparties.
1 unchanged sentence
Interest Rate Risk
−Removed: We have previously entered into interest rate derivative instruments to reduce our exposure to interest rate fluctuations associated with our variable rate debt.
The interest rate on our Credit Agreement is variable based upon the Prime Rate and LIBOR and, therefore, is affected by changes in market interest rates.
−Removed: As of June 30, 2022, we had $930.0 million of outstanding borrowings under the Credit Agreement.
−Removed: Based upon average outstanding borrowings during the three months ended June 30, 2022, interest accrued at a rate of approximately 2.0% per annum, respectively.
+Added: As of September 30, 2022, we had $955.0 million of outstanding borrowings under the Credit Agreement.
+Added: Based upon average outstanding borrowings during the three months ended September 30, 2022, interest accrued at a rate of approximately 3.5% per annum, respectively.
If the Prime Rate or LIBOR increased by 100 basis points, there would be an annualized $1.0 million of additional interest expense per $100.0 million of outstanding borrowing under the Credit Agreement.
4 unchanged sentences
As a result, we may experience foreign currency gains or losses, which may positively or negatively affect our results of operations attributed to these subsidiaries.
−Removed: For the six months ended June 30, 2022 and 2021, revenue associated with this foreign exchange risk was 18% and 17% of our consolidated revenue, respectively.
+Added: For the nine months ended September 30, 2022 and 2021, revenue associated with this foreign exchange risk was 21% and 17% of our consolidated revenue, respectively.
In order to mitigate the risk of these non-functional foreign currencies weakening against the functional currencies of the servicing subsidiaries, which thereby decreases the economic benefit of performing work in these countries, we may hedge a portion, though not 100%, of the projected foreign currency exposure related to client programs served from these foreign countries through our cash flow hedging program.
6 unchanged sentences
Failure to successfully hedge or anticipate currency risks properly could adversely affect our consolidated operating results.
−Removed: Our cash flow hedging instruments as of June 30, 2022 and December 31, 2021 are summarized as follows (in thousands).
+Added: Our cash flow hedging instruments as of September 30, 2022 and December 31, 2021 are summarized as follows (in thousands).
All hedging instruments are forward contracts, except as noted.
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Canadian Dollar
5 unchanged sentences
(1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S.
−Removed: dollars on June 30, 2022 and December 31, 2021.
−Removed: The fair value of our cash flow hedges as of June 30, 2022 was assets/(liabilities) (in thousands):
+Added: dollars on September 30, 2022 and December 31, 2021.
+Added: The fair value of our cash flow hedges as of September 30, 2022 was assets/(liabilities) (in thousands):
Maturing in the
−Removed: June 30, 2022
+Added: September 30, 2022
Next 12 Months
5 unchanged sentences
dollar and Philippine pesos.
−Removed: We recorded net gains of $126 thousand and $3.3 million for settled cash flow hedge contracts and the related premiums for the six months ended June 30, 2022 and 2021, respectively.
−Removed: These gains were reflected in Revenue in the accompanying Consolidated Statements of Comprehensive Income (Loss).
+Added: We recorded net (losses)/gains of ($1.6) million and $4.2 million for settled cash flow hedge contracts and the related premiums for the nine months ended September 30, 2022 and 2021, respectively.
+Added: These (losses)/gains were reflected in Revenue in the accompanying Consolidated Statements of Comprehensive Income (Loss).
If the exchange rates between our various currency pairs were to increase or decrease by 10% from current period-end levels, we would incur a material gain or loss on the contracts.
5 unchanged sentences
We do not currently engage in hedging activities related to these types of foreign currency risks because we believe them to be insignificant as we endeavor to settle these accounts on a timely basis.
−Removed: For the six months ended June 30, 2022 and 2021, approximately 14% and 14%, respectively, of revenue was derived from contracts denominated in currencies other than the U.S.
+Added: For the nine months ended September 30, 2022 and 2021, approximately 14% and 14%, respectively, of revenue was derived from contracts denominated in currencies other than the U.S.
Our results from operations and revenue could be adversely affected if the U.S.
1 unchanged sentence
Fair Value of Debt and Equity Securities
−Removed: We did not have any investments in marketable debt or equity securities as of June 30, 2022 or December 31, 2021.
+Added: We did not have any investments in marketable debt or equity securities as of September 30, 2022 or December 31, 2021.
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.