QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We have market risk with respect to foreign currency exchange rates and interest rates.
−Removed: The market risk is the potential loss arising from adverse changes in these rates as discussed below.
+Added: We are exposed to changes in both foreign currency exchange rates and interest rates.
+Added: From time to time, the Company enters into derivative agreements to manage these risks.
+Added: The market risk is potential losses arising from adverse changes in these rates as discussed below.
Foreign Currency Exchange Rate Risk
We have manufacturing plants and sales transactions worldwide and, therefore, are subject to foreign currency risk.
+Added: Our operational results can be materially impacted depending on the volatility and magnitude of foreign rate changes.
This risk is composed of both potential losses from the translation of foreign currency financial statements and the remeasurement of foreign currency transactions.
−Removed: To manage this risk, we periodically enter into forward exchange contracts either to hedge the net assets of a foreign investment or to provide an economic hedge against future cash flows.
+Added: To manage this risk, we periodically enter into forward exchange
+Added: contracts either to hedge the net assets of a foreign investment or to provide an economic hedge against future cash flows.
The total net assets of non-U.S.
operations and long-term intercompany loans denominated in nonfunctional currencies subject to potential loss amount to approximately $576.4 million.
−Removed: The potential loss in fair value resulting
−Removed: from a hypothetical 10 percent adverse change in quoted foreign currency exchange rates amounts to $71.7 million.
+Added: The potential loss in fair value resulting from a hypothetical 10% adverse change in quoted foreign currency exchange rates amounts to $57.6 million.
Furthermore, related to foreign currency transactions, we have exposure to various nonfunctional currency balances totaling $146.2 million.
2 unchanged sentences
As currency rates change, these nonfunctional currency balances are revalued, and the corresponding adjustment is recorded in the income statement.
−Removed: A hypothetical change of 10 percent in currency rates could result in an adjustment to the income statement of approximately $2.9 million.
+Added: A hypothetical change of 10% in currency rates could result in an adjustment to the income statement of approximately $7.4 million.
Actual results may differ.
3 unchanged sentences
(in thousands, except interest rates)
−Removed: Current maturities of long-term debt:
−Removed: Foreign bank debt (at an end of period rate ranging from 5.22% to 5.52% in 2023)
Long-term debt:
−Removed: Credit agreement with borrowings outstanding, net of fixed rate portion, at an end of period interest rate of 7.08% in 2023, due in 2028
−Removed: Foreign bank debt (at an end of period rate ranging from 5.22% to 5.52% in 2023)
+Added: Credit agreement borrowings outstanding (net of fixed rate portion, due in 2028):
+Added: USD borrowings (end of period all-in interest rate of 6.00%)
+Added: EUR borrowings (end of period all-in interest rate of 4.40%)
+Added: Foreign bank debt (end of period all-in interest rate ranging from 4.27% to 5.10%)
Total $ 146,788
3 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.