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: 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.
+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 ("AOCI") in the Consolidated Balance Sheet until the underlying forecasted transactions are recognized in earnings.
These contracts have varying terms that extend through 2027.
2 unchanged sentences
The cross-currency swap contracts have been designated as net investment hedges of its Euro-denominated operations.
−Removed: 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: Gains and losses on the derivatives qualifying as net investment hedges are recorded in AOCI until the net investment is liquidated or sold.
The Company also uses fixed-to-fixed cross-currency swap contracts to mitigate the foreign currency risk on its 2032 Senior Notes.
The cross-currency swap contracts are designated as cash flow hedges, with changes in the fair value of the derivatives recorded in AOCI and reclassified into earnings based upon changes in the spot rate remeasurement of the underlying debt.
−Removed: As of December 31, 2024, the net fair value of all financial instruments with exposure to currency risk was a $87 million asset.
+Added: As of December 31, 2025, the net fair value of all financial instruments with exposure to currency risk was a $163 million liability.
The potential loss or gain in fair value for such financial instruments from a hypothetical 10% adverse or favorable change in quoted currency exchange rates would be $225 million and $(229) million, respectively, at December 31, 2025 exchange rates.
8 unchanged sentences
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.
−Removed: As of December 31, 2024, the net fair value of all financial instruments with exposure to interest rate risk was a $6 million asset.
+Added: As of December 31, 2025, the net fair value of all financial instruments with exposure to interest rate risk was a $16 million liability.
For our outstanding borrowings under the Credit Agreement as of December 31, 2025, a 50 basis point increase (decrease) in interest rates would have increased (decreased) our interest expense by $3 million and ($3) million, respectively, compared to the amount of interest that would have been incurred in such period based on the rates of interest in effect at December 31, 2025.
1 unchanged sentence
Commodity Price Risk
−Removed: 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.
+Added: We do not utilize derivative contracts to manage commodity price risk, and we are subject to changes in our cost of sales caused by movements in underlying commodity prices.
Approximately 79% of our cost of sales consists of purchased components with significant raw material content.
−Removed: A substantial portion of the purchased parts are made of nickel, aluminum and steel alloys.
+Added: A substantial portion of the purchased parts are made of nickel,
+Added: aluminum and steel alloys.
We have index-based escalators in place with most of our suppliers for raw material inflation / deflation.
3 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.