4 unchanged sentences
We do not hold or issue derivative financial instruments for trading purposes.
+Added: Refer to Note 7, Derivative Instruments and Hedging to the condensed consolidated and combined financial statements above for information on how the Company utilizes derivative financial instruments.
Foreign Currency Exchange Rates
−Removed: Approximately 16.1% and 18.8% of our revenues for the six months ended June 30, 2023 and 2022, respectively, were denominated in currencies other than the U.S.
+Added: Approximately 16.6% and 18.6% of our revenues for the nine months ended September 30, 2023 and 2022, respectively, were denominated in currencies other than the U.S.
dollar (“USD”).
Our financial statements are reported in USD and, accordingly, fluctuations in exchange rates will affect the translation of revenues and expenses denominated in foreign currencies into USD for purposes of reporting our condensed consolidated and combined financial results.
−Removed: In the second quarter of 2023 and the year ended December 31, 2022, the most significant currency exchange rate exposures were the Euro and British pound.
−Removed: Excluding the impacts from any outstanding or future hedging transactions, a hypothetical change of 10% in average exchange rates used to translate all foreign currencies to USD would have impacted income before income taxes for the six months ended June 30, 2023 by approximately $1.2 and for the year ended December 31, 2022 by approximately $4.3.
−Removed: Gross accumulated currency translation adjustments recorded as a separate component of stockholders’ equity were $48.4 and $(120.2) at June 30, 2023 and June 30, 2022, respectively.
+Added: In the third quarter of 2023 and the year ended December 31, 2022, the most significant currency exchange rate exposures were the Euro and British pound.
+Added: Excluding the impacts from any outstanding or future hedging transactions, a hypothetical change of 10% in average exchange rates used to translate all foreign currencies to USD would have impacted income before income taxes for the nine months ended September 30, 2023 by approximately $1.2 and for the year ended December 31, 2022 by approximately $4.3.
+Added: Gross accumulated currency translation adjustments recorded as a separate component of stockholders’ equity were $(7.6) and $(216.8) at September 30, 2023 and September 30, 2022, respectively.
We do not have significant operations in countries in which the economy is considered to be highly inflationary.
3 unchanged sentences
We do not enter into any derivative contracts with external counterparties.
−Removed: However, Labcorp enters into foreign currency forward contracts with external counterparties to hedge certain foreign currency transactions with exposure predominantly to the Euro and British Pound.
+Added: Starting in the quarter ended September 30, 2023, we entered into foreign currency forward contracts with external counterparties to hedge certain foreign currency transactions with exposure predominantly to the Euro and British Pound.
These contracts do not qualify for hedge accounting and the changes in fair value are recorded directly to earnings.
+Added: Prior to the Spin, the Former Parent entered into foreign currency forward contracts with external counterparties to hedge certain foreign currency transactions with exposure predominantly to the Euro and British Pound.
+Added: These contracts did not qualify for hedge accounting and the changes in fair value were recorded directly to earnings.
Earnings related to these contracts were included in the combined statements of operations as part of corporate allocations.
5 unchanged sentences
In particular, we face the market risks associated with interest rate movements on our variable rate debt.
−Removed: Following the Spin, we are significantly leveraged.
−Removed: We incurred approximately $1,640 of long-term debt in connection with the Spin.
−Removed: A majority of this debt bears interest at a variable rate, and we will consider entering into a floating-to-fixed interest rate swap with respect to some of our floating rate debt.
−Removed: At June 30, 2023, we had $1,070 outstanding related to our variable rate debt.
+Added: We are significantly leveraged and incurred approximately $1,640.0 of long-term debt in connection with the Spin.
+Added: A majority of this debt bears interest at a variable rate, and we entered into a floating-to-fixed interest rate swap with respect to some of our floating rate debt in August 2023.
+Added: At September 30, 2023, we had $1,062.3 outstanding related to our variable rate debt.
Excluding the impacts from any outstanding or future floating-to-fixed interest rate swap transactions, a hypothetical 1.00% increase in interest rates would result in increased interest expenses of $10.6.
We expect to manage our interest rate risk but expect to be exposed to an element of market risk from changes to interest rates, including on any refinancing of debt.
−Removed: We expect to regularly assess market risks and to establish policies and business practices to protect against the adverse effects of these exposures.
+Added: We expect to regularly assess market risks and to
+Added: establish policies and business practices to protect against the adverse effects of these exposures.
See “Description of Certain Indebtedness and Other Financing.”
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.