8 unchanged sentences
Floorplan Line.
−Removed: Based on the amount of variable-rate borrowings outstanding of $1.6 billion and $1.9 billion as of December 31, 2020 and 2019, respectively, a 100 basis-point change in interest rates would have resulted in an approximate $16.0 million and $18.3 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: The Financial Conduct Authority, the authority that regulates LIBOR, announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
−Removed: The Alternative Reference Rates Committee (“ARRC”) has proposed that the Secured Overnight Financing Rate (“SOFR”) is the rate that represents the best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR.
−Removed: ARRC has proposed a paced market transition plan to SOFR from USD-LIBOR.
−Removed: A similar transition away from LIBOR is occurring in the U.K.
−Removed: to the Sterling Overnight Indexed Average.
−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.
−Removed: 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.
+Added: Based on variable-rate borrowings outstanding of $1.6 billion for both years ended December 31, 2021 and 2020, respectively, a 100 basis-point change in interest rates would have resulted in an approximate $14.8 million and a $16.0 million change to our annual interest expense, respectively, after consideration of the average interest rate swaps in effect during the periods.
+Added: To mitigate the impact of interest rate fluctuations, we employ an interest rate hedging strategy, whereby we swap variable interest rate exposure on a portion of our borrowings for a fixed interest rate.
+Added: In addition, 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 years ended December 31, 2020 and 2019, we recognized $47.3 million and $49.1 million of interest assistance as a reduction of new vehicle cost of sales, respectively.
+Added: During the years ended December 31, 2021, and 2020, we recognized $54.2 million and $47.3 million, respectively, of interest assistance as a reduction of new vehicle cost of sales.
Foreign Currency Exchange Rates
The functional currency of our U.K.
−Removed: subsidiaries is the GBP and of our Brazil subsidiaries is the BRL.
−Removed: 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 $195.3 million and $219.4 million decrease to our revenues for the years ended December 31, 2020 and 2019, respectively.
−Removed: A 10% devaluation in average exchange rates for the BRL to the USD would have resulted in a $22.9 million and $40.5 million decrease to our revenues for the years ended December 31, 2020 and 2019, respectively.
+Added: subsidiaries is the GBP.
+Added: Our exposure to fluctuating foreign currency 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.
+Added: A 10% devaluation in average foreign currency exchange rates for the GBP to the USD would have resulted in a $239.6 million and $195.3 million decrease to our revenues for the years ended December 31, 2021, and 2020, respectively.
For additional information about our market sensitive financial instruments, see Note 7.
4 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.