10 unchanged sentences
The market risk associated with these instruments resulting from currency exchange movements is expected to offset the market risk of the underlying transactions, assets and liabilities being hedged.
−Removed: We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with a major financial institution.
+Added: We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with major financial institutions.
Further, our policy is to deal with counterparties having a minimum investment grade or better credit rating.
1 unchanged sentence
Our primary objective in holding derivatives is to reduce the volatility of earnings associated with changes in foreign currency.
−Removed: As of February 29, 2020, FactSet maintained foreign currency forward contracts to hedge a portion of the British Pound Sterling, Euro, Indian Rupee, and Philippine Peso exposures.
+Added: As of May 31, 2020, FactSet maintained foreign currency forward contracts to hedge a portion of the British Pound Sterling, Euro, Indian Rupee, and Philippine Peso exposures.
FactSet entered into a series of forward contracts to mitigate our currency exposure ranging from 50% to 75% over their respective hedged periods.
The current foreign currency forward contracts are set to mature at various points between the fourth quarter of fiscal 2020 through the first quarter of fiscal 2021.
−Removed: As of February 29, 2020, the gross notional value of foreign currency forward contracts to purchase Philippine Pesos and Indian Rupees with U.S.
+Added: As of May 31, 2020, the gross notional value of foreign currency forward contracts to purchase Philippine Pesos and Indian Rupees with U.S.
dollars was ₱466.8 billion and Rs830.6 billion, respectively.
1 unchanged sentence
dollars with Euros and British Pound Sterling was €11.4 million and £9.5 million, respectively.
−Removed: A loss on derivatives of $0.3 million was recorded into operating income for the three months ended February 29, 2020, compared to a loss on derivatives of $0.4 million in the same period a year ago.
−Removed: For the six months ended February 29, 2020, a loss on derivatives of $1.1 million was recorded into operating income, compared to a loss on derivatives of $0.8 million in the prior year period.
+Added: A loss on derivatives of $1.0 million was recorded into operating income for the three months ended May 31, 2020, compared to a loss on derivatives of $0.6 million in the same period a year ago.
+Added: For the nine months ended May 31, 2020, a loss on derivatives of $2.1 million was recorded into operating income, compared to a loss on derivatives of $1.4 million in the prior year period.
The gains and losses on foreign currency forward contracts mitigate the variability in operating expenses associated with currency movements.
2 unchanged sentences
The related cash flow impacts of all our derivative activities are reflected as cash flows from operating activities.
−Removed: A sensitivity analysis was performed based on the estimated fair value of all foreign currency forward contracts outstanding at February 29, 2020.
+Added: A sensitivity analysis was performed based on the estimated fair value of all foreign currency forward contracts outstanding at May 31, 2020.
dollar had been 10% weaker, the fair value of outstanding foreign currency forward contracts would have increased by $4.7 million, which would have had an immaterial impact on our Consolidated Balance Sheet.
Such a change in fair value of our financial instruments would be substantially offset by changes in our expense base.
−Removed: If we had no hedges in place as of February 29, 2020, a hypothetical 10% weaker U.S.
−Removed: dollar against all foreign currencies from the quoted foreign currency exchange rates at February 29, 2020, with operating results held constant in local currencies, would result in a decrease in operating income by $28.2 million over the next 12 months.
+Added: If we had no hedges in place as of May 31, 2020, a hypothetical 10% weaker U.S.
+Added: dollar against all foreign currencies from the quoted foreign currency exchange rates at May 31, 2020, with operating results held constant in local currencies, would result in a decrease in operating income by $28.7 million over the next 12 months.
A hypothetical 10% weaker U.S.
−Removed: dollar against all foreign currencies at February 29, 2020 would have increased the fair value of total assets by $126.0 million and equity by $21.5 million.
+Added: dollar against all foreign currencies at May 31, 2020 would have increased the fair value of total assets by $116.2 million and equity by $25.2 million.
Volatility in the British Pound Sterling exchange rate is expected to continue in the short term as the UK negotiates its exit from the European Union.
1 unchanged sentence
Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations - Market Trends - Brexit for further information on Brexit.
+Added: Table of Content s
Interest Rate Risk
Cash and Cash Equivalents
−Removed: The fair market value of our Cash and cash equivalents and Investments at February 29, 2020 was $367.4 million.
+Added: The fair market value of our Cash and cash equivalents and Investments at May 31, 2020 was $480.3 million.
Our cash and cash equivalents consist of demand deposits and money market funds with original maturities of three months or less and are reported at fair value.
8 unchanged sentences
We do not believe that the value or liquidity of our cash and cash equivalents and investments have been significantly impacted by current market events.
−Removed: As of February 29, 2020, the fair value of our long-term debt was $575.0 million, which approximated its carrying amount.
−Removed: The application of a floating interest rate equal to the daily LIBOR rate plus a spread using a debt leverage pricing grid approximates the current market rate for similar instruments.
+Added: As of May 31, 2020, the fair value of our long-term debt was $575.0 million and bears interest on the outstanding principal amount at a rate equal to the LIBOR rate plus a spread using a debt leverage pricing grid, which was 0.875% as of May 31, 2020.
+Added: We believe the carrying value of the debt approximates fair value as the interest rate is a floating rate equal to the LIBOR rate plus a spread, which is representative of market rates for similar instruments.
It is anticipated that the fair market value of our debt will continue to be immaterially affected by fluctuations in interest rates and we do not believe that the value of our debt has been significantly impacted by current market events.
−Removed: The debt bears interest on the outstanding principal amount at a rate equal to the daily LIBOR rate plus a spread using a debt leverage pricing grid currently at 0.875%.
−Removed: During the three months ended February 29, 2020 and February 28, 2019, we recorded interest expense of $3.8 million and $5.1 million, respectively, on our outstanding debt amounts.
−Removed: During the six months ended February 29, 2020 and February 28, 2019, we recorded interest expense of $8.0 million and $9.9 million, respectively, on our outstanding debt amounts.
−Removed: Assuming all terms of our outstanding long-term debt remained the same, a hypothetical 25 basis point change (up or down) in the one-month LIBOR rate would result in a $1.4 million change to our annual interest expense.
+Added: The variable rate of interest on our long-term debt can expose us to interest rate volatility due to changes in the LIBOR rate.
+Added: To mitigate this exposure, on March 5, 2020, we entered into an interest rate swap agreement with a notional amount of $287.5 million to hedge the variable interest rate obligation on a portion of our outstanding balance under the 2019 Revolving Credit Facility.
+Added: Under the terms of the interest rate swap agreement, we will pay interest at a fixed rate of 0.7995% and receive variable interest payments based on the same one-month LIBOR rate utilized to calculate the interest expense from the 2019 Revolving Credit Facility.
+Added: The interest rate swap agreement matures on March 28, 2024.
+Added: During the three months ended May 31, 2020 and May 31, 2019, we recorded interest expense of $2.9 million and $5.2 million, respectively, on our outstanding debt amounts.
+Added: During the nine months ended May 31, 2020 and May 31, 2019, we recorded interest expense of $10.9 million and $15.1 million, respectively, on our outstanding debt amounts.
+Added: Assuming all terms of our outstanding long-term debt remained the same, a hypothetical 25 basis point change (up or down) in the one-month LIBOR rate would result in a $0.7 million change to our annual interest expense for the portion of the long-term debt not hedged by the interest rate swap agreement.
Technology Risk
1 unchanged sentence
Our business is dependent on our ability to process substantial volumes of data and transactions rapidly and efficiently on our computer-based networks and systems.
−Removed: Our computer operations, as well as our other business centers, and those of our suppliers and clients are vulnerable to interruption by fire, natural disaster, power loss, telecommunications failures, terrorist attacks, acts of war, civil unrest, Internet failures, computer viruses and security breaches, and other events beyond our reasonable control.
+Added: Our computer operations, as well as our other business centers, and those of our suppliers and clients are vulnerable to interruption by fire, natural disaster, power loss, telecommunications failures, terrorist attacks, acts of war, civil unrest, public health crises, Internet failures, computer viruses and security breaches, and other events beyond our reasonable control.
We maintain back-up facilities and certain other redundancies for each of our major data centers to minimize the risk that any such event will disrupt those operations.
2 unchanged sentences
Although we seek to minimize these risks through security measures, controls, back-up data centers and emergency planning, there can be no assurance that such efforts will be successful or effective.
+Added: Table of Content s
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.