8 unchanged sentences
To manage its exposure to variable interest rates in a cost-efficient manner, the Company enters into interest rate swaps in which the Company agrees to exchange, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount.
−Removed: The Company entered into an interest rate swap agreement to fix the interest rate on an initial aggregate amount of $80.0 million of its initial $175.0 million of variable rate debt thereby reducing exposure to interest rate changes.
+Added: The Company entered into an interest rate swap agreement to fix the interest rate on an initial aggregate amount of $80.0 million, which is 53.0% of the outstanding debt balance as of December 31, 2020 thereby reducing exposure to interest rate changes.
Interest rate changes affect the fair market value of such debt but do not impact earnings or cash flows.
3 unchanged sentences
therefore, it has been marked-to-market and the fair value recorded in the Consolidated Balance Sheets with the offsetting gain or loss recorded in interest and other expense in our Consolidated Statements of Operations.
−Removed: The interest rate swap agreement is more fully described in Note 4.
+Added: The interest rate swap agreement is more fully described in Note 6, Fair Value Measurement.
Foreign Currency Risk
4 unchanged sentences
To mitigate our exposure to Mexican Pesos, where we have our greatest exposure, we have entered into multiple monthly forward exchange contracts that have been designated as cash flow hedge instruments which are recorded in the Consolidated Balance Sheets at fair value.
−Removed: Noncash gains and losses are deferred in
−Removed: accumulated other comprehensive loss and recognized when settled in our Consolidated Statements of Operations.
+Added: Noncash gains and losses are deferred in accumulated other comprehensive loss and recognized when settled in our Consolidated Statements of Operations.
We do not hold or issue foreign exchange options or forward contracts for trading purposes.
−Removed: Outstanding foreign currency forward exchange contracts at December 31, 2019 are more fully described in Note 4.
−Removed: At December 31, 2019 and 2018 , the potential reduction in earnings from a hypothetical instantaneous 10% adverse change in quoted foreign currency spot rates applied to foreign currency sensitive instruments would have been immaterial.
+Added: Outstanding foreign currency forward exchange contracts at December 31, 2020 are more fully described in Note 6, Fair Value Measurement.
+Added: At December 31, 2020 and 2019, the potential reduction in earnings from a hypothetical 10% adverse change in quoted foreign currency spot rates applied to foreign currency sensitive instruments would have been immaterial.
Foreign Currency Transactions
10 unchanged sentences
The principal currencies of exposure are the Mexican Peso, Chinese Yuan, British Pound, Euro, Czech Koruna, Australian Dollar, Japanese Yen, Indian Rupee, Thai Baht, and Ukrainian Hryvnia.
−Removed: Foreign currency translation adversely impacted fiscal year 2019 revenues by $10.4 million , or 1.2% .
+Added: Foreign currency translation adversely impacted fiscal year 2020 revenues by $0.2 million.
Effects of Inflation
1 unchanged sentence
First, borrowings under our revolving credit facility is tied to prevailing short-term interest rates that may change as a result of inflation rates, translating into changes in interest expense.
−Removed: Second, general inflation can impact material purchases, labor, pension liabilities and other costs.
+Added: Second, general inflation can impact material purchases, labor, and pension liabilities.
In many cases, we have limited ability to pass through inflation-related cost increases due to the competitive nature of the markets that we serve.
−Removed: The significant rise in certain commodity prices negatively impacted our margins in 2019 , 2018 and 2017 .
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.