2 unchanged sentences
From time to time, we enter into transactions that have been authorized according to documented policies and procedures in order to manage these risks.
−Removed: These transactions relate primarily to financial instruments described below.
+Added: These transactions primarily relate to the financial instruments described below.
Since the counterparties to these financial instruments are large commercial banks and similar financial institutions, we do not believe that we are exposed to material counterparty credit risk.
We do not use financial instruments for trading purposes.
−Removed: Our exposure to changes in interest rates results primarily from floating rate long-term debt tied to LIBO Rate, SOFR Rate or EURIBOR Rate.
+Added: If we utilized our 2018 Revolving Credit Facility, we would be exposed to changes in interest rates.
+Added: Our 2018 Revolving Credit Facility bears interest, at our option, at a rate to either (i) the Adjusted Term SOFR Rate and Adjusted EURIBOR Rate (each, as defined in the 2018 Credit Agreement), plus an applicable margin initially equal to 3.00% per annum or (ii) the ABR Rate, plus an applicable margin initially equal to 2.00% per annum, in each case with two 25 basis point step downs based on achievement of certain senior secured first lien net leverage ratios.
Our exposure to changes in currency exchange rates results primarily from:
4 unchanged sentences
Interest rate risk management.
−Removed: We periodically enter into agreements with financial institutions that are intended to limit our exposure to additional interest expense due to increases in variable interest rates.
−Removed: These instruments effectively cap our interest rate exposure.
−Removed: As of December 31, 2022 and 2021, we recorded unrealized pre-tax gains of $27.4 million and $5.9 million, respectively, on our interest rate swaps.
−Removed: See Note 8, "Fair Value Measurements and Derivative Instruments" for additional details.
+Added: We have previously entered into agreements with financial institutions that were intended to limit our exposure to additional interest expense due to increases in variable interest rates.
+Added: These instruments effectively capped our interest rate exposure.
+Added: As of December 31, 2023, we did not have any outstanding interest rate swaps.
+Added: As of December 31, 2022 , we recorded unrealized pre-tax gains of $27.4 million on our interest rate swaps.
+Added: As of December 31, 2023, we no longer had any variable rate debt outstanding and therefore no exposure to variability in interest rates.
+Added: See Note 8, "Fair Value Measurements and Derivative Instruments" in the Notes to the Consolidated Financial Statements for further discussion.
Currency rate management.
4 unchanged sentences
Forward exchange contracts and purchased currency options are carried at fair value.
−Removed: Our outstanding foreign currency derivatives represented a net unrealized pre-tax loss of $0.2 million at December 31, 2022 and a net unrealized gain of $0.4 million as of December 31, 2021.
+Added: Our outstanding foreign currency derivatives represented a net unrealized pre-tax gain of $0.1 million at December 31, 2023 and a net unrealized pre-tax loss of $0.2 million at December 31, 2022.
Energy commodity management.
−Removed: We have entered into commodity derivative contracts to effectively fix some or all of our exposure to refined oil products.
−Removed: The outstanding commodity derivative contracts represented net unrealized gain of $8.5 million as of December 31, 2021.
−Removed: As of December 31, 2022, there were no commodity derivative contracts outstanding.
+Added: We previously entered into commodity derivative contracts to effectively fix some or all of our exposure to refined oil products.
+Added: As of December 31, 2023 and 2022, there were no commodity derivative contracts outstanding.
Sensitivity analysis.
1 unchanged sentence
The sensitivity analysis for the derivatives represents the hypothetical changes in value of the hedge position and does not reflect the related gain or loss on the forecasted underlying transaction.
−Removed: A hypothetical increase in interest rates of 100 basis points (1%) would have decreased our interest expense by $0.2 million, n et of the impact of our interest rate swap, for the year ended December 31, 2022.
−Removed: The same 100 basis points increase would have resulted in an increase of $3.5 million in fair value of our interest rate swap portfolio.
As of December 31, 2023, a 10% appreciation or depreciation in the value of the U.S.
dollar against foreign currencies from the prevailing market rates would result in a corresponding decrease of $2.0 million or a corresponding increase of $2.0 million, respectively, in the fair value of the foreign currency hedge portfolio.
−Removed: Because of the high correlation between the hedging instrument and the underlying exposure, fluctuations in the value of the instruments are generally offset by reciprocal changes in the value of the underlying exposure.
−Removed: For further information related to the financial instruments described above, see Note 1, "Business and Summary of Significant Accounting Policies" and Note 8, "Fair Value Measurement and Derivative Instruments" to the Consolidated Financial Statements for additional information.
+Added: For further information related to the financial instruments described above, see Note 1, "Business and Summary of Significant Accounting Policies" and Note 8, "Fair Value Measurements and Derivative Instruments" in the Notes to the Consolidated Financial Statements for additional information.
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.