10 unchanged sentences
All other derivatives not designated as hedging instruments under ASC 815, "Derivatives and Hedging," are revalued in the consolidated statements of income.
−Removed: For all foreign currency derivative instruments designated as cash flow hedges, retrospective effectiveness is tested on a monthly basis using a cumulative dollar offset test.
+Added: For all foreign currency derivative instruments designated as cash flow hedges, Adient tests their effectiveness at the cash flow hedge’s inception and on an on-going basis.
The fair value of the hedged exposures and the fair value of the hedge instruments are revalued, and the ratio of the cumulative sum of the periodic changes in the value of the hedge instruments to the cumulative sum of the periodic changes in the value of the hedge is calculated.
12 unchanged sentences
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.
−Removed: The interest rate caps are designated as cash flow hedges under ASC 815.
−Removed: As of September 30, 2021, Adient had two outstanding interest rate caps with a total notional amount of approximately $200 million.
−Removed: 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.
+Added: The interest rate caps were designated as cash flow hedges under ASC 815.
+Added: During fiscal 2021, in conjunction with the Term Loan B Amendment as discussed in Note 9, "Debt and Financing Arrangements," Adient de-designated these contracts, the impact of which was not material.
+Added: These contracts matured in fiscal 2022.
+Added: As of September 30, 2022, Adient had no outstanding interest rate caps.
Adient's investment policy and strategy are focused on preservation of capital and supporting Adient's liquidity requirements.
15 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, during the current year.
+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.
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.
−Removed: The cross-currency interest rate swap in Japan matured during the fourth quarter of fiscal 2021.
+Added: The cross-currency interest rate swap in Japan matured during fiscal 2021.
At September 30, 2022 and 2021, Adient estimates that an unfavorable 10% change in all applicable exchange rates versus the U.S.
7 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.