1 unchanged sentence
Our earnings, cash flows and financial position are exposed to market risks relating to fluctuations in interest rates and foreign currency exchange rates.
−Removed: All of the potential changes noted below are based on information available at September 30, 2022.
+Added: All of the potential changes noted below are based on information available at March 31, 2023.
Interest Rate Risk
−Removed: Each one percentage point change associated with the variable rate Vertex First Lien Credit Agreement and Vertex Second Lien Credit Agreement would result in a $13.6 million change in our related annual cash interest expenses.
−Removed: Assuming our Amended Revolver was fully drawn to a principal amount equal to $200.0 million, each one percentage point change in interest rates would result in a $2.0 million change in our annual cash interest expense.
−Removed: In the past, we entered into interest rate swap derivative instruments to manage our exposure to interest rate risk related to our Amended Term Loan.
−Removed: On June 29, 2022, in conjunction with our planned extinguishment of the related hedged debt interest expense, we terminated our remaining interest rate swaps that were designated and qualified as effective cash flow hedges.
−Removed: For additional information regarding our derivative instruments, see Note 8, Derivative Instruments.
+Added: Each one percentage point change associated with the variable rate Vertex First Lien Credit Agreement and would result in a $8.8 million change in our related annual cash interest expenses.
+Added: Assuming our 2023 Revolver was fully drawn to a principal amount equal to $500.0 million, each one percentage point change in interest rates would result in a $5.1 million change in our annual cash interest expense.
+Added: As of March 31, 2023, the notional value of our interest rate swap agreements totaled $300.0 million.
+Added: The difference to be paid or received under the terms of the interest rate swap agreements is accrued as interest rates change and recognized as an adjustment to interest expense for the related debt in the period incurred.
+Added: Changes in the variable interest rates to be paid pursuant to the terms of the interest rate swap agreements will have a corresponding effect on future cash flows.
+Added: Refer to Note 8, Derivative Instruments in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding our interest rate swaps.
Foreign Currency Exchange Risk
1 unchanged sentence
However, we are required to transact in foreign currencies for some of our contracts, resulting in some assets and liabilities denominated in foreign currencies.
−Removed: As a result, our earnings may experience some volatility related to movements in foreign currency exchange rates.
+Added: As a result, our earnings may experience volatility related to movements in foreign currency exchange rates.
In the past, we entered into forward foreign exchange contracts to buy or sell various foreign currencies to selectively protect against volatility in the value of non-functional currency denominated monetary assets and liabilities.
−Removed: The impact of the related contracts on our Condensed Consolidated Statements of Income and our Condensed Consolidated Balance Sheets was immaterial and related hedging was discontinued.
−Removed: Our last forward contracts expired in January 2021 and no such contracts are outstanding as of September 30, 2022.
+Added: The impact of the related contracts on our Condensed Consolidated Statements of (Loss) Income and our Condensed Consolidated Balance Sheets was immaterial and related hedging was discontinued.
+Added: Our forward contracts expired in January 2022 and no such contracts are outstanding as of March 31, 2023.
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.