24 unchanged sentences
Changes in global interest rates affect the interest earned on Adient's cash, cash equivalents and marketable securities and the fair value of those securities, as well as costs associated with hedging and interest paid on Adient's debt.
−Removed: Adient purchased interest rate caps during fiscal 2019 to selectively limit the impact of USD LIBOR increases on its interest payments related to Company's Term Loan B Agreement.
+Added: Adient purchased interest rate caps during fiscal 2019 to selectively limit the impact of USD LIBOR increases on its interest payments related to Adient's Term Loan B Agreement.
The interest rate caps are designated as cash flow hedges under ASC 815.
−Removed: As of September 30, 2020, Adient had two interest rate caps outstanding totaling approximately $200 million.
+Added: As of September 30, 2021, Adient had two outstanding interest rate caps with a total notional amount of approximately $200 million.
+Added: During the third quarter of fiscal 2021, in conjunction with the Term Loan B Amendment as discussed in Note 9, "Debt and Financing Arrangements," Adient de-designated these two contracts, the impact of which was not material.
Adient's investment policy and strategy are focused on preservation of capital and supporting Adient's liquidity requirements.
2 unchanged sentences
The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss.
−Removed: Further details regarding Adient's debt and financing arrangements are provided in Note 9, "Debt and Financing Arrangements," of the notes to consolidated financial statements.
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+Added: Further details regarding Adient's debt and financing arrangements are provided in Note 9, "Debt and Financing Arrangements," of the notes to consolidated financial statements.
Foreign Currency Risk
9 unchanged sentences
These are marked-to-market through other comprehensive income when effective.
−Removed: Adient's euro-denominated bond and certain cross-currency interest rate swaps have been designated to selectively hedge portions of Adient's net investments in Europe and Japan, respectively.
+Added: Adient's euro-denominated bond and certain cross-currency interest rate swaps have been designated to selectively hedge portions of Adient's net investments in Europe and Japan, respectively, during the current year.
The currency effects of its euro-denominated bond and cross-currency interest rate swaps are reflected in the accumulated other comprehensive income account within shareholders' equity attributable to Adient where they offset gains and losses recorded on Adient's net investments in Europe and Japan.
+Added: The cross-currency interest rate swap in Japan matured during the fourth quarter of fiscal 2021.
At September 30, 2021 and 2020, Adient estimates that an unfavorable 10% change in all applicable exchange rates versus the U.S.
1 unchanged sentence
Commodity Risk
−Removed: Adient's exposures to market risk from changes in the price of production material are managed primarily through negotiations with suppliers and customers, although there can be no assurance that Adient will recover all such costs.
−Removed: Adient continues to evaluate derivatives available in the marketplace and may decide to utilize derivatives in the future to manage select commodity risks if acceptable hedging instruments and counterparties are identified for its exposure level at that time, as well as the effectiveness of the financial hedge among other factors.
+Added: Adient's exposures to market risk from changes in the price of production material are managed primarily through indexing arrangements and negotiations with suppliers and customers, although not all customer commodity exposures are covered by indexing arrangements and there can be no assurance that Adient will otherwise be able to recover all such costs.
+Added: Adient’s current indexing arrangements with its customers typically provide for partial recovery of commodity price changes on a lag of 3 months to, in some cases, more than 12 months between cost incurrence and partial recovery.
+Added: Adient continues to evaluate its arrangements with its customers and to pursue negotiated commercial settlements related to commodity pricing matters.
+Added: Adient evaluates from time to time derivatives available in the marketplace and may decide to utilize derivatives in the future to manage select commodity risks if acceptable hedging instruments and counterparties are identified for its exposure level at that time, as well as the effectiveness of the financial hedge among other factors.
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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.