3 unchanged sentences
We do not currently hedge foreign exchange risk, as discussed further below.
−Removed: The following quantitative and qualitative information is provided regarding our foreign currency exchange rates and financial instruments to which we are a party at June 30, 2020 and from which we may incur future gains or losses from changes in market interest rates and/or foreign currency rates.
+Added: The following quantitative and qualitative information is provided regarding our foreign currency exchange rates and financial instruments to which we are a party at September 30, 2020 and from which we may incur future gains or losses from changes in market interest rates and/or foreign currency rates.
We do not enter into derivative or other financial instruments for speculative or trading purposes.
1 unchanged sentence
We have interest rate risk on our variable-rate debt obligations, primarily consisting of our Floorplan Line.
−Removed: Based on the amount of variable-rate borrowings outstanding of $1.6 billion and $1.8 billion as of June 30, 2020 and 2019, respectively, a 100 basis-point change in interest rates would have resulted in an approximate $7.5 million and $8.9 million change to our annual interest expense, respectively, after consideration of the average interest rate swaps in effect during the periods.
+Added: Based on the amount of variable-rate borrowings outstanding of $1.6 billion and $1.8 billion as of September 30, 2020 and 2019, respectively, a 100 basis-point change in interest rates would have resulted in an approximate $6.9 million and $9.0 million change to our annual interest expense, respectively, after consideration of the average interest rate swaps in effect during the periods.
The majority of our floorplan notes payable, mortgages and other debt are benchmarked to LIBOR.
4 unchanged sentences
We reflect interest assistance as a reduction of new vehicle inventory cost until the associated vehicle is sold.
−Removed: During the six months ended June 30, 2020 and 2019, we recognized $20.4 million and $22.3 million of interest assistance as a reduction of new vehicle cost of sales, respectively.
+Added: During the nine months ended September 30, 2020 and 2019, we recognized $33.0 million and $35.6 million of interest assistance as a reduction of new vehicle cost of sales, respectively.
For additional information about the potential impact of LIBOR phase out on our results of operations, see Part I, “Item 1A.
4 unchanged sentences
Our exposure to fluctuating exchange rates relates to the effects of translating financial statements of those subsidiaries into our reporting currency, which we do not hedge against based on our investment strategy in these foreign operations.
−Removed: A 10% devaluation in average exchange rates for the GBP to the USD would have resulted in a $77.7 million and $114.2 million decrease to our revenues for the six months ended June 30, 2020 and 2019, respectively.
−Removed: A 10% devaluation in average exchange rates for the BRL to the USD would have resulted in an $11.7 million and $19.6 million decrease to our revenues for the six months ended June 30, 2020 and 2019, respectively.
+Added: A 10% devaluation in average exchange rates for the GBP to the USD would have resulted in a $145.0 million and $167.4 million decrease to our revenues for the nine months ended September 30, 2020 and 2019, respectively.
+Added: A 10% devaluation in average exchange rates for the BRL to the USD would have resulted in a $16.7 million and $29.7 million decrease to our revenues for the nine months ended September 30, 2020 and 2019, respectively.
For additional information about our market sensitive financial instruments, see Part I, “Item 1.
1 unchanged sentence
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.