6 unchanged sentences
We hedge forecasted currency exposure to minimize the earnings exposures arising from foreign currency exchange risk on foreign currency purchases and sales.
−Removed: Gains and losses on the underlying foreign currency exposures are partially offset with gains and losses on the foreign currency forward contracts.
−Removed: Under our cash flow hedging program, we designate the foreign currency forward contracts as cash flow hedges of underlying foreign currency forecasted purchases and sales, with gains and losses on the qualifying derivatives recorded in Accumulated other comprehensive income (loss) in the Consolidated Balance Sheet until the underlying forecasted transactions are recognized in earnings.
+Added: Under our cash flow hedging program, we designate certain foreign currency forward contracts as cash flow hedges of underlying foreign currency forecasted purchases and sales, with gains and losses on the qualifying derivatives recorded in Accumulated other comprehensive income in the Consolidated Balance Sheet until the underlying forecasted transactions are recognized in earnings.
These contracts have varying terms that extend through 2025.
−Removed: Effective with our entry into the Credit Agreement, the Company entered into floating-floating cross-currency swap contracts to limit its exposure to investments in certain foreign subsidiaries exposed to foreign exchange fluctuations.
−Removed: The cross-currency swaps have been designated as net investment hedges of its Euro-denominated operations.
−Removed: Gains and losses
−Removed: on the derivatives qualifying as net investment hedges are recorded in Accumulated other comprehensive income (loss) within the Consolidated Balance Sheet until the net investment is liquidated or sold.
+Added: We also utilize undesignated foreign currency forward contracts to partially offset gains and losses on the foreign currency remeasurement of balance sheet positions.
+Added: Effective with our entry into the Credit Agreement, the Company entered into float-to-float cross-currency swap contracts to limit its exposure to investments in certain foreign subsidiaries exposed to foreign exchange fluctuations.
+Added: The cross-currency swap contracts have been designated as net investment hedges of its Euro-denominated operations.
+Added: Gains and losses on the derivatives qualifying as net investment hedges are recorded in Accumulated other comprehensive income within the Consolidated Balance Sheet until the net investment is liquidated or sold.
+Added: The Company also uses a float-to-fixed cross-currency swap contract to mitigate the foreign currency risk, as well as interest rate risk, on its 2023 Dollar Facility.
+Added: The cross-currency swap contract is designated as a cash flow hedge, with changes in the fair value of the derivative recorded in AOCI and reclassified into earnings based upon changes in the spot rate remeasurement of the underlying debt.
As of December 31, 2023, the net fair value of all financial instruments with exposure to currency risk was a $20 million asset.
8 unchanged sentences
Accordingly, we may be exposed to interest rate risk on borrowings under the Credit Agreement.
−Removed: We manage this risk by entering into interest rate swaps to convert floating rate debt to fixed rate debt to reduce market risk associated with changes in interest rates.
+Added: We manage this risk by entering into interest rate swap contracts to convert floating rate debt to fixed rate debt to reduce market risk associated with changes in interest rates.
As of December 31, 2023, the net fair value of all financial instruments with exposure to interest rate risk was a $43 million asset.
2 unchanged sentences
Commodity Price Risk
−Removed: We are subject to changes in our cost of sales caused by movements in underlying commodity prices.
+Added: We do not utilize derivative contracts to manage commodity price risk and are subject to changes in our cost of sales caused by movements in underlying commodity prices.
Approximately 76% of our cost of sales consists of purchased components with significant raw material content.
1 unchanged sentence
We have index-based escalators in place with most of our suppliers for raw material inflation / deflation.
−Removed: As our costs change, we are contractually able to pass through a portion of the changes in commodity prices to certain of our customers in accordance with long-term agreements.
−Removed: Where Long-term pass-through agreements are not in place with customers, we seek to negotiate additional pricing arrangements with our customers.
−Removed: Assuming current levels of commodity purchases and contractually agreed customer pass-through arrangements, a 10% variation in the commodity prices would correspondingly change our earnings by approximately $24 million per year.
+Added: As our costs change, we may be contractually able to pass through a portion of the changes in commodity prices to certain of our customers in accordance with long-term agreements.
+Added: Where long-term pass-through agreements are not in place with customers, we generally seek to negotiate additional pricing arrangements with our customers.
+Added: Assuming current levels of commodity purchases, a 10% variation in the commodity prices could impact our cost of sales by up to approximately $55 million per year prior to any price recovery from customers.
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.