Quantitative and Qualitative Disclosures About Market Risk
−Removed: As of June 30, 2020, we were exposed to market risks associated with interest rates and foreign currency exchange rates.
+Added: As of September 30, 2020, we were exposed to market risks associated with interest rates and foreign currency exchange rates.
Interest Rate Risk.
−Removed: As of June 30, 2020, $102.9 million of our outstanding debt was subject to floating rates.
+Added: As of September 30, 2020, $93.1 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.
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 $0.4 million in interest expense for the six-month period ended June 30, 2020.
+Added: Based on this hypothetical assumption, we would have incurred an additional $0.6 million in interest expense for the nine-month period ended September 30, 2020.
Foreign Currency Exchange Rate Risk.
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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.
−Removed: For the six-month period ended June 30, 2020, we recorded foreign currency translation losses of $35.5 million to accumulated other comprehensive loss.
+Added: For the nine-month period ended September 30, 2020, we recorded foreign currency translation losses of $16.1 million to accumulated other comprehensive loss.
Deferred taxes have not been provided on foreign currency translation adjustments since we consider our undistributed earnings (when applicable) of our non-U.S.
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to be permanently reinvested.
−Removed: 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 six-month period ended June 30, 2020, we recognized foreign currency transaction losses of $12.5 million, primarily related to our subsidiaries in the U.K.
−Removed: 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 expired in February 2020.
−Removed: A portion of these foreign currency exchange contracts qualified for cash flow hedge accounting treatment.
+Added: When currencies other than the functional currency are to be paid or received, the resulting transaction gain or loss associated with changes in the applicable foreign currency exchange rate is recognized in the condensed consolidated statements of operations as a component of “Other income (expense), net.” For the nine-month period ended September 30, 2020, we recognized foreign currency transaction losses of $3.7 million, primarily related to our subsidiaries in the U.K.
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.