4 unchanged sentences
Interest Rate Risk
−Removed: Our long-term debt portfolio primarily consists of fixed-rate instruments complemented by a variable-rate revolving credit facility that can be drawn on from time to time.
−Removed: For any variable-rate debt, interest rate changes in the underlying index rates will impact future interest expense.
−Removed: Currently we do not hold any derivative contracts that hedge our interest rate risk;
−Removed: however, we may consider entering into such contracts in the future.
−Removed: A 1% increase or decrease in interest rates would decrease or increase the fair value of our notes and debentures by approximately 6%.
+Added: Our long-term debt portfolio, excluding finance leases and other debt, consists of $800 million fixed rate and $900 million variable rate loans, complemented by a variable-rate revolving credit facility.
+Added: In the second quarter of 2022, we entered into multiple swap agreements to convert $650 million of variable rate debt from SOFR-indexed to EURIBOR-indexed.
+Added: A hypothetical 1% increase in EURIBOR would, among other things, increase our interest expense by approximately $6.5 million.
+Added: We also entered into multiple swap agreements to convert $250 million of variable rate USD-denominated debt into USD-denominated fixed rate debt.
+Added: For our fixed rate notes, a 1% increase or decrease in interest rates would decrease or increase the fair value of our notes by approximately 4.5%.
Foreign Currency Exchange Risk
3 unchanged sentences
Consequently, a depreciation of the EUR or the GBP relative to the USD could have an adverse impact on our financial results.
−Removed: We entered into cross-currency swap agreements to manage our foreign currency exchange risk by effectively converting a portion of the fixed-rate USD-denominated notes, including the interest payments, to fixed-rate EUR-denominated debt.
+Added: We entered into cross-currency swap agreements to manage our foreign currency exchange risk by effectively converting a portion of the fixed-rate USD-denominated debt, including the interest payments, to fixed-rate EUR-denominated debt and a portion of the floating-rate USD-denominated loans, including the interest payments, to floating-rate EUR-denominated debt.
We use foreign currency option contracts to mitigate the risk of a reduction in the value of earnings from our operations that use the EUR or GBP as their functional currency.
−Removed: As of March 31, 2022, a uniform 10% strengthening in the value of the USD relative to the EUR would have resulted in a decrease in net assets of $26 million.
−Removed: As of March 31, 2022, a uniform 10% strengthening in the value of the USD relative to the GBP would have resulted in a decrease in net assets of $46 million.
−Removed: These theoretical calculations assume that an instantaneous, parallel shift in exchange rates occurs, which is not consistent with the
−Removed: history of foreign currency transactions.
+Added: As of June 30, 2022, a uniform 10% strengthening in the value of the USD relative to the EUR would have resulted in an increase in net assets of approximately $57 million.
+Added: As of June 30, 2022, a uniform 10% strengthening in the value of the USD relative to the GBP would have resulted in a decrease in net assets of approximately $48 million.
+Added: These theoretical calculations assume that an instantaneous, parallel shift in exchange rates occurs, which is not consistent with the history of foreign currency markets.
Fluctuations in exchange rates also affect the volume of sales or the foreign currency sales price as competitors’ services become more or less attractive.
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.