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, Adient tests their effectiveness at the cash flow hedge’s inception and on an on-going basis.
−Removed: 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.
−Removed: The hedge is deemed as highly effective if the ratio is between 80% and 125%.
−Removed: For all designated net investment hedges, Adient assessed its net investment position in non-U.S.
−Removed: operations and compared it with the outstanding net investment hedge principal on a quarterly basis.
+Added: Adient evaluates cash flow hedges for effectiveness at inception based on the critical terms match method.
+Added: The hedges are not expected to incur any ineffectiveness, however, a quarterly qualitative assessment of effectiveness is done to determine if the critical terms match method remains appropriate to use.
+Added: For all designated net investment hedges, Adient assesses its net investment position in non-U.S.
+Added: operations and compares it with the outstanding net investment hedge principal on a quarterly basis.
All hedges are deemed highly effective if the aggregate outstanding principal of the hedge instrument designated as the net investment hedge in a non-U.S.
24 unchanged sentences
These are marked-to-market through other comprehensive income when effective.
−Removed: Adient's euro-denominated bond and certain foreign currency forward contracts have been designated to selectively hedge portions of Adient's net investments in Europe and China.
−Removed: The currency effects of its euro-denominated bond and foreign currency forward contracts are reflected in the accumulated other comprehensive income account (“AOCI”) within shareholders' equity attributable to Adient where they offset gains and losses recorded on Adient's net investments in Europe and China.
−Removed: As of September 30, 2023, the €123 million ($130 million) aggregate principal amount of 3.50% euro-denominated unsecured notes due August 2024 was designated as a net investment hedge to selectively hedge portions of Adient's net investment in Europe.
+Added: As of September 30, 2024, certain foreign currency forward contracts have been designated to selectively hedge portions of Adient's net investments in China.
+Added: The currency effects of the foreign currency forward contracts are reflected in the accumulated other comprehensive income account (“AOCI”) within shareholders' equity attributable to Adient where they offset gains and losses recorded on Adient's net investments in China.
At September 30, 2024 and 2023, Adient estimates that the fair value of outstanding foreign exchange contracts would have been adversely impacted by approximately $72 million and $47 million, respectively, from an unfavorable 10% change in all applicable foreign currency 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.