1 unchanged sentence
As discussed in Note 16 to our audited consolidated financial statements for the fiscal year ended September 30, 2023, the Company is exposed to market risk arising from changes in market rates and prices, including movements in foreign currency exchange rates and interest rates.
−Removed: As of June 30, 2023, other than as described below, there have been no material changes to the Company’s exposure to market risk since September 30, 2022.
+Added: As of December 31, 2023, other than as described below, there have been no material changes to the Company’s exposure to market risk since September 30, 2023.
Foreign Currency Risk
3 unchanged sentences
We focus on managing the level of exposure to the risk of foreign currency exchange rate fluctuations on major currencies, which can include the Euro, British pound sterling, Japanese yen, Canadian dollar, Swedish krona, Australian dollar, Brazilian real, Korean won and Norwegian krone, and in many cases we have natural hedges where we have expenses associated with local operations that offset the revenue in local currency and our Euro-denominated debt, which can offset declines in the Euro.
−Removed: As of June 30, 2023, the Company had outstanding foreign currency forward exchange contracts for the sale of $172 million and the purchase of $98 million of foreign currencies at fixed rates.
−Removed: Subsequent to June 30, 2023, certain of our foreign exchange contracts expired and were not replaced.
+Added: As of December 31, 2023, the Company had outstanding foreign currency forward exchange contracts for the sale of $366 million and the purchase of $219 million of foreign currencies at fixed rates.
+Added: Subsequent to December 31, 2023, certain of our foreign exchange contracts expired and were not replaced.
The fair value of foreign exchange contracts is subject to changes in foreign currency exchange rates.
For the purpose of assessing the specific risks, we use a sensitivity analysis to determine the effects that market risk exposures may have on the fair value of our financial instruments.
−Removed: For foreign exchange forward contracts outstanding at June 30, 2023, we typically perform a sensitivity analysis assuming a hypothetical 10% depreciation of the U.S.
+Added: For foreign exchange forward contracts outstanding at December 31, 2023, we typically perform a sensitivity analysis assuming a hypothetical 10% depreciation of the U.S.
dollar against foreign currencies from prevailing foreign currency exchange rates and assuming no change in interest rates.
2 unchanged sentences
Interest Rate Risk
−Removed: We had $4.028 billion of principal debt outstanding at June 30, 2023, of which $1.314 billion was variable-rate debt and $2.714 billion was fixed-rate debt.
+Added: We had $4.041 billion of principal debt outstanding at December 31, 2023, of which $1.313 billion was variable-rate debt and $2.728 billion was fixed-rate debt.
As such, we are exposed to changes in interest rates.
−Removed: At June 30, 2023, 67% of the Company’s debt was at a fixed rate.
−Removed: In addition, as of June 30, 2023, we have the option under the Senior Term Loan Facility to select a one, three or six month Term SOFR.
−Removed: To manage interest rate risk on $1.314 billion of U.S.
−Removed: dollar-denominated variable-rate debt, the Company has entered into an interest rate swap to effectively convert the floating interest rate to a fixed interest rate on a portion of its variable-rate debt.
−Removed: As a result, as of June 30, 2023, 80% of the Company’s debt was effectively at a fixed rate.
−Removed: As of June 30, 2023, the Company’s interest rate swap is expected to mature within one year.
−Removed: Based on the level of interest rates prevailing at June 30, 2023, the fair value of the Company’s fixed-rate and variable-rate debt was approximately $3.596 billion.
−Removed: Further, as of June 30, 2023, based on the amount of the Company’s fixed-rate debt, a 25 basis point increase or decrease in the level of interest rates would decrease the fair value of the fixed-rate debt by approximately $34 million or increase the fair value of the fixed-rate debt by approximately $35 million.
+Added: At December 31, 2023, 68% of the Company’s debt was at a fixed rate.
+Added: In addition, as of December 31, 2023, we have the option under our floating rate loans under the Senior Term Loan Facility to select a one, three or six month Term SOFR.
+Added: Based on the level of interest rates prevailing at December 31, 2023, the fair value of the Company’s fixed-rate and variable-rate debt was approximately $3.763 billion.
+Added: Further, as of December 31, 2023, based on the amount of the Company’s fixed-rate debt, a 25 basis point increase or decrease in the level of interest rates would decrease the fair value of the fixed-rate debt by approximately $35 million or increase the fair value of the fixed-rate debt by approximately $35 million.
This potential fluctuation is based on the simplified assumption that the level of fixed-rate debt remains constant with an immediate across the board increase or decrease in the level of interest rates with no subsequent changes in rates for the remainder of the period.
5 unchanged sentences
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.