Quantitative and Qualitative Disclosures About Market Risk
−Removed: As of September 30, 2020, we were exposed to market risks associated with interest rates and foreign currency exchange rates.
+Added: As of March 31, 2021, we were exposed to market risks associated with interest rates and foreign currency exchange rates.
Interest Rate Risk.
−Removed: As of September 30, 2020, $93.1 million of our outstanding debt was subject to floating rates.
−Removed: The interest rate applicable to our variable rate debt may continue to rise, thereby increasing our interest expense and related cash outlay.
+Added: As of March 31, 2021, $28.9 million of our outstanding debt was subject to floating rates.
+Added: The interest rate applicable to our variable rate debt may 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 $0.6 million in interest expense for the nine-month period ended September 30, 2020.
+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, 2021.
Foreign Currency Exchange Rate Risk.
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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 endeavor to pay a portion of our expenses in local currencies to partially offset revenues that are denominated in the same local currencies.
−Removed: In addition, a substantial portion of our contracts provide for collections from customers in U.S.
+Added: In order to mitigate the effects of exchange rate risk in areas outside the U.S., we endeavor to pay a portion of our expenses in local currencies to partially offset revenues that are denominated in the same local currencies.
+Added: In addition, a substantial portion of our contracts are denominated, and provide for collections from customers, in U.S.
Assets and liabilities of our subsidiaries that do not have the U.S.
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 nine-month period ended September 30, 2020, we recorded foreign currency translation losses of $16.1 million to accumulated other comprehensive loss.
+Added: For the three-month period ended March 31, 2021, we recorded foreign currency translation gains of $4.6 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 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.
+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 three-month period ended March 31, 2021, we recorded foreign currency transaction gains of $1.6 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.