4 unchanged sentences
Interest Rate Risk
−Removed: We are primarily exposed to interest rate risk through our ABL Facility.
−Removed: As amended by the LIBOR Transition Amendment, borrowings under our ABL Facility bear interest at variable rates based on (i) the US Prime Rate or the Federal Funds Rate for borrowings denominated in USD, (ii) the Canadian Dollar Bankers' Acceptances average rate or the rate of interest publicly announced by the Bank of America (Canada) as its base rate or the Federal Funds Rate for borrowings denominated in Canadian dollars, (iii) SONIA for borrowings denominated in British Pounds Sterling and (iv) EURIBOR for borrowings denominated in Euros.
−Removed: See “Risk Factors— The uncertainty regarding the potential phase-out of LIBOR may negatively impact our operating results." We had $1.6 billion in outstanding principal under the ABL Facility at December 31, 2021.
−Removed: In order to manage this risk, we maintain an interest rate swap agreement that effectively converts $400.0 million in aggregate notional amount of variable-rate debt under our ABL Facility into fixed-rate debt.
−Removed: The swap agreement provides for us to pay a fixed rate of 3.06% per annum on the outstanding debt in exchange for receiving a variable interest rate based on 1-month LIBOR.
−Removed: The effect is a synthetically fixed rate of 4.94% on the $400.0 million notional amount, when including the current applicable margin.
−Removed: An increase in interest rates by 100 basis points on our ABL Facility, inclusive of the impact of our interest rate swaps, would increase annual interest expense by approximately $9.5 million based on current outstanding borrowings.
+Added: We are primarily exposed to interest rate risk through our ABL Facility, which bears interest at variable rates.
+Added: We had $2.0 billion in outstanding principal under the ABL Facility at December 31, 2022 .
+Added: An increase in interest rates by 100 basis points on our ABL Facility would have increased annual interest expense by approximately $16.3 million based on borrowings during 2022.
+Added: To manage interest rate risk, in January 2023, we executed interest rate swap agreements relating to an aggregate of $750.0 million in notional amount of variable-rate debt under our ABL Facility.
+Added: The swap agreements provide for us to pay a weighted average effective fixed interest rate of 3.44% per annum and receive a variable interest rate equal to one-month term SOFR, with maturity dates of June 30, 2027.
+Added: The swap agreements were designated and qualified as hedges of the Company's exposure to changes in interest payment cash flows created by fluctuations in variable interest rates on our ABL Facility.
+Added: After consideration of the swaps, an increase in interest rates by 100 basis points on our ABL Facility would have increased annual interest expense by approximately $12.7 million based on outstanding borrowings at December 31, 2022.
Foreign Currency Risk
−Removed: We currently generate the majority of our consolidated net revenues in the US, and the reporting currency for our consolidated financial statements is the US dollar.
−Removed: However, we are exposed to currency risk through our operations in Canada, Mexico, and the UK.
+Added: We currently generate approximately 93% of our consolidated net revenues in the US, and the reporting currency for our consolidated financial statements is the US dollar.
+Added: However, we are exposed to currency risk through our operations in Canada and Mexico.
For the operations outside the US, we bill customers primarily in their local currency, which is subject to foreign currency rate changes.
7 unchanged sentences
Impact of Inflation
−Removed: Inflationary factors such as increases in the cost of our product and overhead costs may adversely affect our operating results if we are unsuccessful in passing such inflationary increases on to our customers in the form of higher prices.
−Removed: We do not believe that inflation has had a material effect on our results of operations.
+Added: Similar to many other organizations, we face inflationary pressures across most of our input costs such as building materials, labor, transportation and fuel.
+Added: Inflation has contributed to increased capital costs for both new units and refurbishment of our existing units.
+Added: However, given our scale and our strong rate performance, we believe we have been able to navigate the inflationary environment well and have consistently driven margin improvements during this period of rising costs.
+Added: Therefore, we do not believe that inflation has had a material effect on our results of operations.
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.