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 September 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 March 31, 2021 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.
Interest Rates
−Removed: 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 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.
−Removed: The majority of our floorplan notes payable, mortgages and other debt are benchmarked to LIBOR.
−Removed: On July 27, 2017, the Chief Executive of the U.K.
−Removed: Financial Conduct Authority, which regulates LIBOR, announced that it intends to stop persuading or requiring banks to submit rates for the calculation of LIBOR after 2021.
−Removed: The use of an alternative rate could result in increased interest expense, in addition to costs to amend the loan agreements and other applicable arrangements to a new reference rate.
+Added: We have interest rate risk on our variable-rate debt obligations, primarily consisting of our U.S.
+Added: Floorplan Line.
+Added: Based on the amount of variable-rate borrowings outstanding of $1.5 billion and $2.0 billion as of March 31, 2021 and 2020, respectively, a 100 basis-point change in interest rates would have resulted in an approximate $5.0 million and $11.8 million change to our annual interest expense, respectively, after consideration of the interest rate swaps in effect.
Our exposure to changes in interest rates with respect to our variable-rate floorplan borrowings is partially mitigated by manufacturers’ interest assistance, which in some cases is influenced by changes in market based variable interest rates.
We reflect interest assistance as a reduction of new vehicle inventory cost until the associated vehicle is sold.
−Removed: 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.
−Removed: For additional information about the potential impact of LIBOR phase out on our results of operations, see Part I, “Item 1A.
−Removed: Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2019.
+Added: During the three months ended March 31, 2021 and 2020, we recognized $13.2 million and $10.6 million of interest assistance as a reduction of new vehicle cost of sales, respectively.
+Added: For additional information about the potential impact of LIBOR phase out on our results of operations, see Item 1A.
+Added: Risk Factors of our 2020 Form 10-K.
Foreign Currency Exchange Rates
2 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 $145.0 million and $167.4 million decrease to our revenues for the nine months ended September 30, 2020 and 2019, respectively.
−Removed: 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.
−Removed: For additional information about our market sensitive financial instruments, see Part I, “Item 1.
−Removed: Financial Statements,” Note 6 “Financial Instruments and Fair Value Measurements” within our Notes to Condensed Consolidated Financial Statements.
+Added: A 10% devaluation in average exchange rates for the GBP to the USD would have resulted in a $50.0 million and $53.7 million decrease to our revenues for the three months ended March 31, 2021 and 2020, respectively.
+Added: A 10% devaluation in average exchange rates for the BRL to the USD would have resulted in a $5.1 million and $8.4 million decrease to our revenues for the three months ended March 31, 2021 and 2020, respectively.
+Added: For additional information about our market sensitive financial instruments, refer to Note 6.
+Added: Financial Instruments and Fair Value Measurements within our Notes to Condensed Consolidated Financial Statements.
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.