1 unchanged sentence
Currency Risk
−Removed: We are primarily exposed to foreign exchange risk with respect to revenues generated outside of the United States denominated in the Euro, British Pound, Chinese Yuan, Korean Won, Australian Dollar, Canadian Dollar, Japanese Yen, Colombian Peso, Brazilian Real, Mexican Peso, Indian Rupee and Swedish Krona.
+Added: We are primarily exposed to foreign exchange risk with respect to revenues generated outside of the United States denominated in the Euro, British Pound, Chinese Renminbi, Korean Won, Australian Dollar, Canadian Dollar, Japanese Yen, Colombian Peso, Brazilian Real, Mexican Peso, Indian Rupee and Swedish Krona.
We manage our foreign currency exposures on a consolidated basis, which allows us to net exposures and take advantage of any natural offsets.
4 unchanged sentences
We use options and forwards to hedge the foreign exchange risk to earnings relating to forecasted transactions and recognized assets and liabilities denominated in foreign currencies.
−Removed: The maximum term over which we have cash flow hedge contracts in place related to foreign exchange risk on forecasted transactions as of September 30, 2020 is 12 months.
+Added: The maximum term over which we have cash flow hedge contracts in place related to foreign exchange risk on forecasted transactions as of March 31, 2021 is 12 months.
We also enter into derivative instruments to hedge foreign exchange risk on certain intra-company and third-party receivables and payables and debt denominated in foreign currencies.
As part of our risk-management program, we perform sensitivity analyses to assess potential changes in the fair value of our foreign exchange contracts relating to hypothetical and reasonably possible near-term movements in foreign exchange rates.
−Removed: A sensitivity analysis of changes in the fair value of foreign exchange contracts outstanding as of September 30, 2020, while not predictive in nature, indicated that if the U.S.
−Removed: Dollar uniformly weakened by 10% against all currencies, the net pre-tax asset balance of $3 million with respect to those contracts would increase by $25 million.
−Removed: The sensitivity analysis model recalculates the fair value of the foreign exchange contracts outstanding as of September 30, 2020 by replacing the actual exchange rates as of September 30, 2020 with exchange rates that are 10% weaker compared to the actual exchange rates for each applicable currency.
+Added: A sensitivity analysis of changes in the fair value of foreign exchange contracts outstanding as of March 31, 2021, while not predictive in nature, indicated that if the U.S.
+Added: Dollar uniformly weakened by 10% against all currencies, the net pre-tax liability balance of $12 million with respect to those contracts would decrease by $40 million, resulting in a net pre-tax asset balance.
+Added: The sensitivity analysis model recalculates the fair value of the foreign exchange contracts outstanding as of March 31, 2021 by replacing the actual exchange rates as of March 31, 2021 with exchange rates that are 10% weaker compared to the actual exchange rates for each applicable currency.
All other factors are held constant.
3 unchanged sentences
Changes in the value of the Argentine Peso applied to our peso-denominated net monetary asset positions are recorded in income at the time of the change.
−Removed: As of September 30, 2020, our net monetary assets denominated in Argentine Pesos are not significant.
+Added: As of March 31, 2021, our net monetary assets denominated in Argentine Pesos are not significant.
Interest Rate and Other Risks
Refer to the caption “Interest Rate and Other Risks” in the “Financial Instrument Market Risk” section of the 2020 Annual Report.
−Removed: During the quarter ended September 30, 2020, we terminated an interest rate contract with a notional balance of $50 million for a $7 million cash payment.
−Removed: In October 2020, we terminated additional interest rate contracts with a notional balance of $350 million and a liability fair value of $109 million as of September 30, 2020 for $100 million in cash payments.
+Added: There were no significant changes during the quarter ended March 31, 2021.
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.