4 unchanged sentences
We utilize derivative financial instruments to hedge economic exposures, as well as reduce earnings and cash flow volatility resulting from shifts in market rates.
−Removed: In using derivative financial instruments to hedge our exposures to changes in
−Removed: exchange rates, we expose ourselves to counterparty credit risk.
+Added: In using derivative financial instruments to hedge our exposures to changes in exchange rates, we expose ourselves to counterparty credit risk.
We manage our exposure to counterparty credit risk by entering into derivative financial instruments with investment grade-rated institutions that can be expected to perform fully under the terms of the agreements and by diversifying the financial institutions with which we enter into such agreements.
9 unchanged sentences
This creates foreign exchange exposure for us.
−Removed: As of February 28, 2025, we have hedged a portion of our exposure related to the anticipated cash flow requirements denominated in certain foreign currencies by entering into hedging contracts with institutions to acquire a total of PHP 41,730.0 million at a fixed price of $725.0 million at various dates through February 2027;
−Removed: and INR 28,580.0 million at a fixed price of $330.3 million at various dates through February 2027.
−Removed: The fair value of these derivative instruments as of February 28, 2025 is presented in Note 6 of the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
−Removed: The potential loss in fair value at February 28, 2025 for such contracts resulting from a hypothetical 10% adverse change in the underlying foreign currency exchange rates is approximately $103.7 million.
+Added: As of May 31, 2025, we have hedged a portion of our exposure related to the anticipated cash flow requirements denominated in certain foreign currencies by entering into hedging contracts with institutions to acquire a total of PHP 41,780.0 million at a fixed price of $726.1 million at various dates through May 2027;
+Added: and INR 29,470.0 million at a fixed price of $338.1 million at various dates through May 2027.
+Added: The fair value of these derivative instruments as of May 31, 2025 is presented in Note 6 of the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
+Added: The potential loss in fair value at May 31, 2025 for such contracts resulting from a hypothetical 10% adverse change in the underlying foreign currency exchange rates is approximately $108.4 million.
This loss would be substantially mitigated by corresponding gains on the underlying foreign currency exposures.
2 unchanged sentences
The purpose of these derivative instruments is to mitigate the risk of foreign currency exposure related to receivables, payables, and intercompany transactions that are denominated in currencies that are different from the functional currencies of our respective legal entities that are party to the transactions.
−Removed: As of February 28, 2025, the fair value of these derivatives not designated as hedges was a net receivable of $8.4 million.
+Added: As of May 31, 2025, all of these contracts have reached maturity.
Interest Rate Risk
−Removed: At February 28, 2025, our outstanding debt under our Restated Credit Facility and our Securitization Facility is variable rate debt, which exposes the Company to changes in interest rates.
+Added: At May 31, 2025, our outstanding debt under our Restated Credit Agreement and our Securitization Facility is variable rate debt, which exposes the Company to changes in interest rates.
Holding other variables constant, including the total amount of outstanding indebtedness, a one hundred basis point increase in interest rates on our variable-rate debt would cause an estimated increase in interest expense of approximately $19.7 million per year.
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.