2 unchanged sentences
Our exposure to interest rate risk relates primarily to our cash, cash equivalents and debt.
−Removed: As of June 30, 2020 , our cash and cash equivalents consisted of standard depository accounts which are held for working capital purposes.
+Added: As of June 30, 2021, our cash and cash equivalents consisted of standard depository accounts which are held for working capital purposes, money market funds, and marketable securities with an original maturity of less than 90 days.
We do not believe we have a material exposure to interest rate fluctuations related to our cash and cash equivalents.
2 unchanged sentences
In order to mitigate our exposure to interest rate changes related to our variable rate debt, we execute interest rate swap contracts to fix the interest rate on a portion of our outstanding or forecasted long-term debt with varying maturities.
−Removed: As of June 30, 2020 , a hypothetical 100 basis point increase in rates, inclusive of our outstanding interest rate swaps, would result in an increase to interest expense of approximately $0.3 million over the next 12 months.
+Added: As of June 30, 2021, a hypothetical 100 basis point increase in rates, inclusive of our outstanding interest rate swaps, would result in a $4.1 million impact to interest expense over the next 12 months.
Currency Exchange Rate Risk.
10 unchanged sentences
Our currency hedging objectives are targeted at reducing volatility in our forecasted U.S.
−Removed: dollar-equivalent adjusted EBITDA in order to protect our debt covenants.
+Added: dollar-equivalent adjusted EBITDA in order to maintain stability on our incurrence-based debt covenants.
Since adjusted EBITDA excludes non-cash items such as depreciation and amortization that are included in net income, we may experience increased, not decreased, volatility in our GAAP results due to our hedging approach.
1 unchanged sentence
In addition, we elect to execute currency derivatives contracts that do not qualify for hedge accounting.
−Removed: As a result, we may experience volatility in our consolidated statements of operations due to (i) the impact of unrealized gains and losses reported in other income (expense), net on the mark-to-market of outstanding contracts and (ii) realized gains and losses recognized in other income (expense), net, whereas the offsetting economic gains and losses are reported in the line item of the underlying activity, for example, revenue.
+Added: As a result, we may experience volatility in our consolidated statements of operations due to (i) the impact of unrealized gains and losses reported in other (expense) income, net on the mark-to-market of outstanding contracts and (ii) realized gains and losses recognized in other (expense) income, net, whereas the offsetting economic gains and losses are reported in the line item of the underlying activity, for example, revenue.
• Translation of our non-U.S.
7 unchanged sentences
• Remeasurement of monetary assets and liabilities:
−Removed: Transaction gains and losses generated from remeasurement of monetary assets and liabilities denominated in currencies other than the functional currency of a subsidiary are included in other income (expense), net on the consolidated statements of operations.
+Added: Transaction gains and losses generated from remeasurement of monetary assets and liabilities denominated in currencies other than the functional currency of a subsidiary are included in other (expense) income, net on the consolidated statements of operations.
Certain of our subsidiaries hold intercompany loans denominated in a currency other than their functional currency.
−Removed: Due to the significance of these balances, the revaluation of intercompany loans can have a material impact on other income (expense), net.
+Added: Due to the significance of these balances, the revaluation of intercompany loans can have a material impact on other (expense) income, net.
We expect these impacts may be volatile in the future, although our largest intercompany loans do not have a U.S.
−Removed: dollar cash impact for the consolidated group because they are either 1) U.S.
+Added: dollar cash impact for the consolidated
+Added: group because they are either 1) U.S.
dollar loans or 2) we elect to hedge certain non-U.S.
−Removed: dollar loans with cross-currency swaps.
+Added: dollar loans with cross-currency swaps and forward contracts.
A hypothetical 10% change in currency exchange rates was applied to total net monetary assets denominated in currencies other than the functional currencies at the balance sheet dates to compute the impact these changes would have had on our income before taxes in the near term.
The balances are inclusive of the notional value of any cross-currency swaps designated as cash flow hedges.
−Removed: A hypothetical decrease in exchange rates of 10% against the functional currency of our subsidiaries would have resulted in an increase of $15.8 million , $33.3 million and $51.1 million on our income before income taxes for the years ended June 30, 2020, 2019 and 2018 , respectively.
+Added: A hypothetical decrease in exchange rates of 10% against the functional currency of our subsidiaries would have resulted in an increase of $6.0 million, $15.8 million, and $33.3 million, on our (loss) income before income taxes for the years ended June 30, 2021, 2020 and 2019, 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.