4 unchanged sentences
Interest Rate Risk
−Removed: Our long-term debt portfolio, excluding finance leases and other debt, consists of $800 million fixed-rate notes and $735 million variable-rate loans, complemented by a variable-rate revolving credit facility.
−Removed: We use cross-currency swap agreements to convert $250 million of variable-rate debt from Secured Overnight Financing Rate (“SOFR”) to Euro Interbank Offered Rate (“Euribor”).
−Removed: We also entered into interest rate swap agreements to convert $250 million of variable-rate U.S.
+Added: Our long-term debt portfolio, excluding finance leases and other debt, consists of $1.9 billion fixed-rate notes and $450 million variable-rate term loans based on the Secured Overnight Financing Rate (“SOFR”).
+Added: For our variable-rate debt, we entered into interest rate swap agreements to convert $125 million of variable-rate U.S.
dollar (“USD”) denominated debt into USD-denominated fixed-rate debt.
−Removed: As of December 31, 2023, a hypothetical 1% increase in Euribor would have increased our interest expense by approximately $3 million.
+Added: Additionally, we entered into cross-currency swap agreements to convert $250 million of variable-rate debt from SOFR to the Euro Interbank Offered Rate (“Euribor”).
+Added: As of December 31, 2024, a hypothetical 1% increase in SOFR and Euribor would have increased our interest expense by approximately $3 million.
Foreign Currency Exchange Rate Risk
−Removed: A significant proportion of our net assets and income is in non-USD currencies, primarily the Euro (“EUR”) and British pound sterling (“GBP”).
+Added: A significant proportion of our net assets and income are in non-USD currencies, primarily the British pound sterling (“GBP”) and the Euro (“EUR”).
We are exposed to currency risk from potential changes in functional currency values of our foreign currency denominated assets, liabilities and cash flows.
−Removed: Consequently, 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 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.
−Removed: 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 December 31, 2023, a uniform 10% strengthening in the value of the USD relative to the EUR would have increased our net assets by approximately $67 million, net of hedging.
−Removed: As of December 31, 2023, a uniform 10% strengthening in the value of the USD relative to the GBP would have decreased our net assets by approximately $143 million, net of hedging.
−Removed: These theoretical calculations assume that an instantaneous, parallel shift in exchange rates occurs, which is not consistent with the history of foreign currency markets.
−Removed: Fluctuations in exchange rates also affect the volume of sales or the foreign currency sales price as competitors’ services become more or less attractive.
−Removed: The sensitivity analysis of the impact of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency prices.
+Added: Consequently, the depreciation of the EUR or the GBP relative to the USD could adversely impact on our financial results.
+Added: We entered into cross-currency swap and forward 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.
+Added: We use foreign currency options and forward 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.
+Added: As of December 31, 2024, a uniform 10% strengthening in the value of the USD relative to the EUR and GBP would have decreased our net assets by $70 million and $92 million, respectively, net of foreign currency hedging.
+Added: These theoretical calculations assume that an instantaneous, parallel shift in exchange GBP and EUR rates occurs.
“Fair Value Measurements and Financial Instruments” to the Consolidated Financial Statements for additional information.
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.