QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We are exposed to certain market risks, primarily related to interest rates and foreign currency exchange rates.
+Added: We are exposed to certain market risks, including those relating to interest rates and inflation.
Interest Rates - Our floating rate financial instruments subject to interest rate risk include a $ 650 million Term Loan, a $ 1.5 billion Revolving Credit Facility, and a $ 1 billion commercial paper program.
1 unchanged sentence
Based on the amounts outstanding under our Term Loan as of December 31, 2022, an increase of 1% in interest rates would increase the interest expense on our debt by approximately $2 million on an annual basis.
−Removed: Foreign Currency - We currently have, and in the future may enter into, foreign currency forward contracts to manage foreign currency exchange rate risk related to payments to suppliers denominated in foreign currencies.
−Removed: As of December 31, 2021, the fair values of our outstanding foreign currency forward contracts were not significant.
+Added: Inflation - Macroeconomic factors have contributed, and we expect will continue to contribute, to increasing cost inflation for raw materials, components, and supplies.
+Added: We mitigate some cost inflation risk by negotiating long-term agreements with certain raw material suppliers and incorporating price escalation provisions in customer contracts to the extent possible.
+Added: We include assumptions of anticipated cost growth in the development of our cost of completion estimates, but if inflationary conditions continue over the long-term, our cost assumptions may not be sufficient to cover all cost escalation or may impact the availability of resources to execute the respective contracts.
+Added: Persistent cost inflation over the long-term may have an adverse impact on our financial position, results of operations, or cash flows.
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.