Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are exposed to market risks associated with interest rates and foreign currency exchange rates.
+Added: As of March 31, 2020 , we were exposed to market risks associated with interest rates and foreign currency exchange rates.
Interest Rate Risk.
−Removed: As of September 30, 2019 , $132.3 million of our outstanding debt was subject to floating rates.
+Added: As of March 31, 2020 , $112.7 million of our outstanding debt was subject to floating rates.
The interest rate applicable to our variable rate debt may continue to rise, thereby increasing our interest expense and related cash outlay.
1 unchanged sentence
These swap contracts, which are settled monthly, began in June 2015 and extend through April 2020.
−Removed: As of September 30, 2019 , the interest rate on $73.6 million of the Nordea Q5000 Loan was hedged.
+Added: As of March 31, 2020 , the interest rate on $60.3 million of the Nordea Q5000 Loan was hedged.
Debt subject to variable rates after considering hedging activities was $52.4 million.
The impact of interest rate risk is estimated using a hypothetical increase in interest rates by 100 basis points for our variable rate long-term debt that is not hedged.
−Removed: Based on this hypothetical assumption, we would have incurred an additional $0.5 million in interest expense for the nine -month period ended September 30, 2019 .
+Added: Based on this hypothetical assumption, we would have incurred an additional $0.1 million in interest expense for the three -month period ended March 31, 2020 .
Foreign Currency Exchange Rate Risk.
1 unchanged sentence
As such, our earnings are impacted by movements in foreign currency exchange rates when (i) transactions are denominated in currencies other than the functional currency of the relevant Helix entity, or (ii) the functional currency of our subsidiaries is not the U.S.
−Removed: In order to mitigate the effects of exchange rate risk in areas outside the United States, we generally pay a portion of our expenses in local currencies to partially offset revenues that are denominated in the same local currencies.
+Added: In order to mitigate the effects of exchange rate risk in areas outside the United States, we endeavor to pay a portion of our expenses in local currencies to partially offset revenues that are denominated in the same local currencies.
In addition, a substantial portion of our contracts provide for collections from customers in U.S.
−Removed: During the nine -month period ended September 30, 2019 , we recognized losses of $2.0 million related to foreign currency transactions in “Other expense, net” in our condensed consolidated statement of operations.
−Removed: In February 2013, we entered into various foreign currency exchange contracts to hedge our foreign currency exposure with respect to the Grand Canyon II and Grand Canyon III charter payments denominated in Norwegian kroner through July 2019 and February 2020, respectively.
−Removed: A portion of these foreign currency exchange contracts currently qualifies for cash flow hedge accounting treatment.
+Added: Assets and liabilities of our subsidiaries that do not have the U.S.
+Added: dollar as their functional currency are translated using the exchange rates in effect at the balance sheet date, resulting in translation adjustments that are reflected in “Accumulated other comprehensive loss” in the shareholders’ equity section of our condensed consolidated balance sheets.
+Added: For the three -month period ended March 31, 2020 , we recorded foreign currency translation losses of $33.6 million to accumulated other comprehensive loss.
+Added: Deferred taxes have not been provided on foreign currency translation adjustments since we consider our undistributed earnings (when applicable) of our non-U.S.
+Added: subsidiaries without operations in the U.S.
+Added: to be permanently reinvested.
+Added: When currencies other than the functional currency are to be paid or received, the resulting transaction gain or loss is recognized in the condensed consolidated statements of operations as a component of “Other income (expense), net.” For the three -month period ended March 31, 2020 , we recognized foreign currency transaction losses of $10.4 million, primarily related to our subsidiaries in the U.K.
+Added: In February 2013, we entered into various foreign currency exchange contracts to hedge our foreign currency exposure with respect to the Grand Canyon III charter payments denominated in Norwegian kroner, which were fully settled through February 2020.
+Added: A portion of these foreign currency exchange contracts qualified for cash flow hedge accounting treatment.
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.