1 unchanged sentence
In the ordinary course of business, the financial position of the Company is routinely subject to certain market risks, notably the effects of changes in interest rates and foreign currency exchange rates.
−Removed: We manage our exposure to these market risks through our regular operating and financing activities.
+Added: We manage our exposure to these market risks through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments.
As a result, the Company does not anticipate any material losses from these risks.
−Removed: The Company was not a party to any derivative financial instrument as of June 30, 2021 and 2020, respectively.
+Added: We do not use derivatives for trading purposes, to generate income or to engage in speculative activity.
Interest Rate Risk
4 unchanged sentences
however, this would have been offset by interest earned on cash balances.
+Added: Assuming a hypothetical increase of one hundred basis points in interest rates on our variable rate debt during the fiscal year ended June 30, 2021, our pre-tax earnings would have decreased by approximately $8.4 million for the fiscal year ended June 30, 2021;
+Added: however, this would have been offset by interest earned on cash balances.
Foreign Currency Risk
While the substantial majority of our business is conducted within the U.S., approximately 15% of our fiscal year 2022 revenues were earned outside of the U.S.
−Removed: and approximately 40% of our total consolidated assets as of June 30, 2021 resided in our foreign subsidiaries.
−Removed: Our revenue generating operations outside of the U.S.
−Removed: primarily reside in Canada and the United Kingdom.
−Removed: As a result, we have a certain degree of foreign currency exposure to exchange rate fluctuations associated with our non-U.S.
−Removed: revenue generating operations, primarily with respect to the Canadian dollar and the British pound.
+Added: Our operations outside of the U.S.
+Added: primarily reside in Canada, Europe and India.
+Added: As a result, we are exposed to foreign currency risk from changes in the value of underlying assets and liabilities of our non-U.S.
+Added: dollar-denominated foreign investments and foreign currency transactions, primarily with respect to the Canadian dollar, the British pound, the Euro, the Indian Rupee and the Swedish Krona.
We manage our foreign currency risk primarily by incurring, to the extent practicable, operating and financing expenses in the local currency in the countries in which we operate.
−Removed: We do not hedge our operating results against currency movement as they are primarily translational in nature.
−Removed: For the fiscal year ended June 30, 2021, a hypothetical 10% decrease in the value of the Canadian dollar and British pound versus the U.S.
−Removed: dollar would have resulted in a decrease in our total pre-tax earnings of approximately $16.7 million.
−Removed: A hypothetical 10% decrease in the value of the Canadian dollar and British pound versus the U.S.
−Removed: dollar at June 30, 2021 would have resulted in a decrease to our total assets of approximately $96.7 million.
+Added: In addition, we executed a series of cross-currency swap derivative contracts with an aggregate notional amount of EUR 880 million which are designated as net investment hedges to hedge a portion of our net investment in our subsidiaries whose functional currency is the Euro.
+Added: At June 30, 2022, the fair value of these derivatives is an asset of $101.4 million.
+Added: Refer to Note 18, “Contractual Commitments, Contingencies, and Off-Balance Sheet Arrangements” to our Consolidated Financial Statements under Item 8 of Part II of this Annual Report on Form 10-K for additional details on our cross-currency swap derivative contracts.
+Added: For the fiscal year ended June 30, 2022 and June 30, 2021, a hypothetical 10% decrease in the value of the Canadian dollar, the British pound, the Euro, the Indian Rupee and the Swedish Krona versus the U.S.
+Added: dollar would have resulted in a decrease in our total pre-tax earnings of approximately $12.8 million and $19.3 million, respectively.
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.