1 unchanged sentence
Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and commodity prices.
+Added: Additional information about market risks to which we are exposed is included within our Annual Report on Form 10-K for the year ended December 31, 2023.
Interest Rate Risks
3 unchanged sentences
Interest Rate Sensitivity
−Removed: As of September 30, 2023, approximately 25% of our long-term debt was based on variable rates.
−Removed: Based on our outstanding borrowings as of September 30, 2023, an assumed 100 basis point increase and decrease in the applicable variable rates would have caused our annual interest expense to change by $23.1 million.
+Added: As of March 31, 2024, approximately 76% of our long-term debt was based on fixed rates.
+Added: Based on our outstanding borrowings as of March 31, 2024 and an interest rate collar on the Retail Term Loan, an assumed 100 basis point change in the variable rates would cause our annual interest expense to change by $21.4 million.
In order to mitigate exposure to interest rate fluctuations on the Retail Term Loan, the Company entered into an interest rate collar with a notional value of $615.0 million.
−Removed: The interest rate collar establishes a range whereby the Company will pay the counterparty if one-month LIBOR falls below the established floor rate of 1.00%, and the counterparty will pay the Company if one-month LIBOR exceeds the ceiling rate of 3.75%, and as of the July 3, 2023 effective date of the Retail Term Loan Amendment, the Company pays the counterparty if one-month SOFR falls below the established floor rate of 1.00%, and the counterparty will pay the Company if one-month SOFR exceeds the ceiling rate of 3.67%.
+Added: The interest rate collar establishes a range whereby the Company will pay the counterparty if one-month SOFR falls below the established floor rate of 1.00%, and the counterparty will pay the Company if one-month SOFR exceeds the ceiling rate of 3.67%.
Foreign Currency Risks
3 unchanged sentences
dollar could have materially adverse effects on our results, financial condition and ability to service debt.
−Removed: Based on our balances as of September 30, 2023, an assumed 1% change in the U.S.
+Added: Based on our balances as of March 31, 2024, an assumed 1% change in the U.S.
dollar/Hong Kong dollar exchange rate would cause a foreign currency transaction gain/loss of $46.4 million.
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.