QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
−Removed: We do not maintain any derivative instruments, interest rate swap arrangements, hedging contracts, futures contracts or the like.
−Removed: Our primary market risk exposure is the changes in interest rates obtainable on our
−Removed: Amended Credit Agreement.
−Removed: The interest on our Amended Credit Agreement is based on a variable rate.
−Removed: At March 31, 2022, $118.0 million was outstanding under our Amended Credit Agreement.
−Removed: Based on the balance of the Amended Credit Agreement at
−Removed: March 31, 2022, any change in the interest rate of 1% would yield a decrease or increase in annual interest expense of $1,180,000.
+Added: The Company is exposed to certain market risks during the ordinary course of business due to adverse changes in interest rates.
+Added: The exposure to interest rate risk primarily results
+Added: from the Company’s variable-rate borrowing.
+Added: The Company may elect to use derivative financial instruments to manage risks from fluctuations in interest rates.
+Added: The Company does not purchase or hold derivatives for trading or speculative purposes.
+Added: Fluctuations in interest rates can be volatile and the Company’s risk management activities do not eliminate these risks.
+Added: In May 2022, we entered into an interest rate swap agreement, effective on June 30, 2022, which has a $150 million notional value, and a maturity date of June 30, 2027.
+Added: Beginning in July 2022, we receive 1-month SOFR, and
+Added: pay a fixed rate of interest of 2.815% plus an additional margin on a quarterly basis.
+Added: The total interest rate in any period will also include an applicable margin based on our Consolidated Leverage Ratio.
+Added: We designated the interest rate swap as a cash flow hedge and structured it to be highly effective.
+Added: Consequently, unrealized gains and losses related to the fair value of the interest rate swap are recorded to accumulated
+Added: other comprehensive income (loss), net of tax.
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.