1 unchanged sentence
Our major market risk exposure is potential losses arising from changing rates and prices regarding foreign currency exchange rate risk, interest rate risk and credit risk.
−Removed: The audit committee of our board of directors regularly reviews foreign exchange and interest rate hedging activity, and monitors compliance with our hedging policy.
+Added: The Company regularly reviews foreign exchange and interest rate activity, and monitors compliance with our hedging policy.
We do not use financial instruments for speculative purposes, and we limit our hedging activity to the underlying economic exposure.
14 unchanged sentences
The effect of translating foreign subsidiaries’ balance sheets into U.S.
−Removed: dollars is included in other
−Removed: comprehensive income.
−Removed: The impact of gains and losses on transactions denominated in currencies other than the functional currency of the relevant operations are included in other expense (income), net in the consolidated statements of income.
+Added: dollars is included in other comprehensive income.
+Added: The impact of gains and losses on transactions denominated in currencies other than the
+Added: functional currency of the relevant operations are included in other expense (income), net in the consolidated statements of income.
Income and expense items are translated at average exchange rates during the year.
−Removed: Net foreign currency exchange gains and losses included in other expense (income), net was a $1.0 million loss for the year ended December 31, 2022.
+Added: Net foreign currency exchange gains and losses included in other expense (income), net was a $0.6 million income for the year ended December 31, 2023.
The foreign currency loss realized in the year ended December 31, 2023 was primarily driven by the non-permanent intercompany debt denominated in local currency and translated to U.S.
9 unchanged sentences
Fair value is determined based on estimated amounts that would be received or paid to terminate the contracts at the reporting date based on quoted market prices.
−Removed: In July 2016, we entered into interest rate cap agreements, paying a premium of $1.6 million to mitigate interest rate volatility from July 2016 through July 2020 by employing varying cap rates ranging from 1.50% to 3.00% on $1.0 billion of notional variable debt.
−Removed: In November 2018, the Company entered into additional interest rate cap agreements to mitigate interest rate volatility from July 2020 through July 2022, with a cap rate of 3.50% on $500.0 million of notional variable-rate debt and a $0.5 million premium annuitized during the effective period.
−Removed: In February 2020, we restructured our $500.0 million notional interest rate cap agreements from July 31, 2020 through July 31, 2022 to lower the interest cap rate to 2.50% with a $0.1 million premium annuitized during the effective period.
−Removed: In March 2020, we further restructured our $500.0 million notional interest rate cap agreements from July 31, 2020 through July 31, 2022 to lower the interest rate cap to 0.84% with a $0.9 million premium annuitized during the effective period.
−Removed: Including premiums on the original November 2018 agreement and the February and March 2020 restructurings, the total cumulative annuitized premium of $4.4 million will be paid through July 31, 2022 on our interest rate cap agreements.
−Removed: In July 2020, we entered into additional interest rate cap agreements to mitigate interest rate volatility from August 2020 to August 2023, with a cap rate of 1.00% on $400.0 million of notional variable-rate debt.
−Removed: In August 2021, PQ Corporation novated $900.0 million of its interest rate caps to Ecovyst Catalyst Technologies LLC.
−Removed: In January 2022, the Company entered into two new interest rate cap agreements, with notional amounts of $250.0 million each and cap rates of 1.00% and paid $4.5 million in premiums.
−Removed: The term for one of the interest rate caps is August 2022 through October 2024 and the term for the other is September 2023 through October 2025.
−Removed: In November 2022, the Company entered into a new interest rate cap agreement to mitigate interest rate volatility from July 2023 through July 2024, with a cap rate of 1.00% on $150.0 million of notional variable-rate debt and annuitized premium of $5.3 million during the effective period, and mitigate interest rate volatility from July 2024 through July 2026, with a cap rate of 1.00% and 175.0 million notional variable-rate debt and annuitized premium of $6.1 million during the effective period.
+Added: For more information about our interest rate cap agreements, refer to Note 18 — Financial Instrument of our consolidated financials statements included in Part II, Item 8 — Financial Statements and Supplementary Data.
We are exposed to credit risk on financial instruments to the extent our counterparty fails to perform certain duties as required under the provisions of an agreement.
2 unchanged sentences
Concentration of credit risk can result primarily from trade receivables, for example, with certain customers operating in the same industry or customer groups located in the same geographic region.
−Removed: Credit risk related to these
−Removed: types of receivables is managed through credit approval and monitoring procedures.
−Removed: In the year ended December 31, 2022, we wrote off a nominal amount of bad debt on total sales of $820.2 million.
+Added: Credit risk related to these types of receivables is managed through credit approval and monitoring procedures.
+Added: For the year ended December 31, 2023, we wrote off a nominal amount of bad debt on total sales of $691.1 million.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
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.