11 unchanged sentences
and Canada or weak economic conditions in the other markets in which the subsidiaries of the Company distribute their products.
−Removed: To mitigate the short-term effect of changes in currency exchange rates on the Company’s functional currency-based sales, the Company’s U.K.
−Removed: and Canadian subsidiaries regularly enter into foreign exchange contracts for over 90% of their future net foreign currency cash receipts over a period of six months.
−Removed: As of December 31, 2019, the Company had a notional amount of $1,072,000 in outstanding forward exchange contracts related to accounts receivable.
−Removed: A 15% fluctuation in exchange rates for these currencies would change the fair value by approximately $161,000.
−Removed: However, since these contracts offset foreign currency denominated transactions, any change in the fair value of the contracts should be offset by changes in the underlying value of the transaction.
Exposure to Exchange Rates
4 unchanged sentences
On December 31, 2020, the result of a uniform 10% strengthening in the value of the U.S.
−Removed: dollar relative to the currencies in which the Company’s sales are denominated would have been a decrease in gross profit of $8,612,000.
−Removed: Comparatively, on December 31, 2018, the result of a uniform 10% strengthening in the value of the dollar relative to the currencies in which the Company’s sales are denominated would have been a decrease in gross profit of approximately $7,360,000.
+Added: dollar relative to the currencies in which the Company’s sales are denominated would have been a decrease in gross profit of $8.2 million.
+Added: Comparatively, on December 31, 2019, the result of a uniform 10% strengthening in the value of the dollar relative to the currencies in which the Company’s sales are denominated would have been a decrease in gross profit of approximately $8.6 million.
This calculation assumes that each exchange rate would change in the same direction relative to the U.S.
1 unchanged sentence
The Company’s sensitivity analysis of the effects of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency prices.
−Removed: The translation adjustment during 2019 was a gain of $3,363,000.
+Added: The translation adjustment during 2020 was a gain of $8.9 million.
On December 31, 2020, the British pound closed at 0.7318 relative to the U.S.
6 unchanged sentences
Accordingly, the Company’s net income is affected by changes in interest rates.
−Removed: Assuming the average level of borrowings at variable rates and a two hundred basis point change in the 2019 average interest rate under these borrowings, the Company’s 2019 interest expense would have changed by approximately $4,832,000.
+Added: Assuming the average level of borrowings at variable rates and a two hundred basis point change in the 2020 average interest rate under these borrowings, the Company’s 2020 interest expense would have changed by approximately $8.6 million.
In the event of an adverse change in interest rates, management could take actions to mitigate its exposure.
5 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.