Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are exposed to market risk from changes in interest rates related to our borrowing under our Credit Agreement.
+Added: We are subject to price risk for our raw materials, the most significant of which relates to the cost of polypropylene and nitrile used in the manufacturing processes of our Global Products segment.
+Added: Prices of the commodities underlying these raw materials are volatile and have fluctuated significantly in recent years and in the future may contribute to fluctuations in our results of operations.
+Added: The ability to hedge these commodity prices is limited.
+Added: In the normal course of business, we are exposed to foreign currency translation and transaction risks.
+Added: Our business transactions outside of the United States are denominated in the euro, Malaysian ringgit, Mexican peso, Thai baht and other currencies.
+Added: We may use foreign currency forwards, swaps and options, where possible, to manage our risk related to certain foreign currency fluctuations.
+Added: We are exposed to market risk from changes in interest rates related to our borrowing under our Credit Agreement and Receivables Securitization Program.
However, we enter into interest rate swap agreements to manage our exposure to interest rate changes.
−Removed: We had $858 million in borrowings under our term loans, $178 million in borrowings under our revolving credit facility and $12 million in letters of credit under the Credit Agreement at December 31, 2019.
+Added: We had $511 million in borrowings under our term loans, $103 million in borrowings under our revolving credit facility, $153 million in borrowings under our Receivables Securitization Program, and $13.9 million in letters of credit under the Credit Agreement at December 31, 2020.
After considering the effects of interest rate swap agreements outstanding as of December 31, 2020, we estimate an increase in interest rates of 100 basis points would result in a potential reduction in future pre-tax earnings of approximately $4.8 million per year based on our borrowings outstanding at December 31, 2020.
6 unchanged sentences
Based on our fuel consumption in 2020, we estimate that every 10 cents per gallon increase in the benchmark would reduce our Global Solutions segment operating income by approximately $0.2 million on an annualized basis.
−Removed: In the normal course of business, we are exposed to foreign currency translation and transaction risks.
−Removed: Our business transactions outside of the United States are primarily denominated in the Euro, British Pound and Thai Baht.
−Removed: We may use foreign currency forwards, swaps and options, where possible, to manage our risk related to certain foreign currency fluctuations.
−Removed: We are subject to price risk for our raw materials, the most significant of which relates to the cost of polypropylene and nitrile used in the manufacturing processes of our Global Products segment.
−Removed: Prices of the commodities underlying these raw materials are volatile and have fluctuated significantly in recent years and in the future may contribute to fluctuations in our results of operations.
−Removed: The ability to hedge these commodity prices is limited.
Financial Statements and Supplementary Data
2 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.