30 unchanged sentences
Moreover, with respect to certain of the instruments used as hedges, we are exposed to the risk that the counterparties with which we trade may cease making markets and quoting prices in such instruments, which may render us unable to enter into an offsetting transaction with respect to an open position.
−Removed: If we anticipate that the income from any such hedging transaction will not be qualifying income for REIT income purposes, we may conduct all or part of our hedging activities through a to-be-formed corporate subsidiary that is fully subject to federal corporate income taxation.
+Added: If we anticipate that the income
+Added: from any such hedging transaction will not be qualifying income for REIT income purposes, we may conduct all or part of our hedging activities through a to-be-formed corporate subsidiary that is fully subject to federal corporate income taxation.
Our profitability may be adversely affected during any period as a result of changing interest rates.
1 unchanged sentence
We limit our exposure to interest rate increases for our debt primarily through the use of interest rate caps.
−Removed: At June 30, 2020 , we did not have any outstanding interest rate swap positions.
−Removed: The interest rate sensitivity table below illustrates the hypothetical impact of changes in the index rates in 1% increments on our interest expense in a one year period, assuming no changes in our debt principal as it stood at June 30, 2020 , and taking into account the effects of interest rate caps and contractual floors on indices.
−Removed: The maximum decrease in the
−Removed: interest rates is assumed to be the actual applicable indices at June 30, 2020 , all of which were under 1% at June 30, 2020 .
−Removed: ($ in thousands)
−Removed: Maximum Decrease in Applicable Index
+Added: At September 30, 2020, we did not have any outstanding interest rate swap positions.
+Added: The interest rate sensitivity table below illustrates the hypothetical impact of changes in the index rates in 1% increments on our interest expense in a one year period, assuming no changes in our debt principal as it stood at September 30, 2020, and taking into account the effects of interest rate caps and contractual floors on indices.
+Added: The maximum decrease in the interest rates is assumed to be the actual applicable indices at September 30, 2020, all of which were under 1% at September 30, 2020.
+Added: ($ in thousands) +2.00% +1.00% Maximum Decrease in Applicable Index
Increase (decrease) in interest expense $ 158,671 $ 80,356 $ (9,515)
7 unchanged sentences
We had previously employed forwards and costless collars (buying a protective put while writing an out-of the-money covered call with a strike price at which the premium received is equal to the premium of the protective put purchased) which involved no initial capital outlay as hedging instruments on our foreign subsidiary investments.
−Removed: During the quarter ended June 30, 2020 , we settled all our outstanding foreign currency hedges and replaced them with put options purchased through upfront premiums.
−Removed: At June 30, 2020 , we had approximately €491.8 million and £267.6 million or a total of $0.9 billion , in net investments in our European subsidiaries.
+Added: During the quarter ended September 30, 2020, we settled all our outstanding foreign currency hedges and replaced them with put options purchased through upfront premiums.
+Added: At September 30, 2020, we had approximately €485.3 million and £262.7 million or a total of $0.9 billion, in net investments in our European subsidiaries.
A 1% change in these foreign currency rates would result in a $8.7 million increase or decrease in translation gain or loss included in other comprehensive income in connection with investments in our European subsidiaries, and a $0.3 million gain or loss in earnings in connection with a GBP denominated loan receivable held by a U.S subsidiary.
−Removed: A summary of the foreign exchange contracts in place at June 30, 2020 , including notional amounts and key terms, is included in Note 11 to the consolidated financial statements.
+Added: A summary of the foreign exchange contracts in place at September 30, 2020, including notional amounts and key terms, is included in Note 11 to the consolidated financial statements.
The maturity dates of these instruments approximate the projected dates of related cash flows for specific investments.
2 unchanged sentences
To manage this risk, we select major international banks and financial institutions as counterparties and perform a quarterly review of the financial health and stability of our trading counterparties.
−Removed: Based on our review at June 30, 2020 , we do not expect any counterparty to default on its obligations.
+Added: Based on our review at September 30, 2020, we do not expect any counterparty to default on its obligations.
Many of our assets and liabilities are interest rate sensitive in nature.
2 unchanged sentences
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.