QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our financial position is exposed to a variety of risks, including foreign currency exchange risk, commodity price risk, credit and capital market risk, interest rate risk and equity price risk.
−Removed: We have seen an increase in these risks and related uncertainties with increased volatility in oil and gas prices and the financial markets as a result of the COVID-19 pandemic.
+Added: Our financial position is exposed to a variety of risks, including foreign currency exchange rate risk, commodity price risk, credit and capital market risk, interest rate risk and equity price risk.
Foreign Currency Exchange Rate Risk
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dollar, we were paid in Argentine pesos.
−Removed: We are currently receiving some customer payments in U.S.
−Removed: dollars, but we will likely receive future payments in Argentine pesos as we have in the past.
The Argentine branch of one of our second‑tier subsidiaries remits U.S.
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dollars with gains and losses resulting from foreign currency transactions included in current results of operations.
−Removed: 2021 FORM 10-K | 54
Commodity Price Risk
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As a result, demand for drilling services and solutions is not always purely a function of the movement of commodity prices.
+Added: 2022 FORM 10-K | 52
Credit and Capital Market Risk
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Interest Rate Risk
−Removed: Our interest rate risk exposure results primarily from short‑term rates, mainly LIBOR‑based, on any borrowings from our revolving credit facility.
−Removed: There were no outstanding borrowings under this facility at September 30, 2021, and our outstanding debt consisted of $1.0 billion (face amount) in senior unsecured notes, of which $487.1 million is classified as current.
−Removed: In September 2021, we issued $550.0 million principal amount of senior unsecured notes, which have a fixed rate of 2.90 percent, and delivered a conditional notice, satisfied on September 29, 2021, of optional full redemption for all of the outstanding 4.65 percent senior unsecured notes, which have a carrying value of $487.1 million.
−Removed: The fair value of the 4.65 percent senior unsecured notes was estimated to be $541.6 million and $534.5 million for fiscal years 2021 and 2020, respectively, and the fair value of the 2.90 percent senior unsecured notes was estimated to be $554.3 million at September 30, 2021.
+Added: Our interest rate risk exposure results primarily from short‑term rates, mainly SOFR‑based, on any borrowings from our revolving credit facility.
+Added: There were no outstanding borrowings under this facility at September 30, 2022, and our outstanding debt consisted of $550.0 million (face amount) in senior unsecured notes, which have a fixed rate of 2.90 percent and an estimated fair value of $430.7 million and $554.3 million as of September 30, 2022 and 2021, respectively.
Equity Price Risk
−Removed: On September 30, 2021, we had equity securities with a total fair value of $13.9 million compared to $7.3 million at September 30, 2020.
+Added: As of September 30, 2022, we had equity securities in ADNOC Drilling with a total fair value of $147.4 million.
+Added: As of September 30, 2021 we had equity securities in Schlumberger Ltd.
+Added: with a total fair value of $13.9 million.
+Added: Our investment in ADNOC Drilling is subject to a three-year lockup period.
+Added: We have applied the guidance in Topic 820, Fair Value Measurement, in the initial accounting of the transaction and the subsequent revaluation of the investment balance, concluding that the contractual restriction on the sale of an equity security that is publicly traded is not considered in measuring fair value.
+Added: During the fiscal year ended September 30, 2022, we sold our remaining equity securities of approximately 467.5 thousand shares in Schlumberger, Ltd.
+Added: and received proceeds of approximately $22.0 million.
A hypothetical 10 percent decrease in the market price for our marketable equity securities as of September 30, 2022 would decrease the fair value by $14.7 million.
−Removed: We make no specific plans to sell securities, but rather sell securities based on market conditions and other circumstances.
These securities are subject to a wide variety and number of market‑related risks that could substantially reduce or increase the fair value of our holdings.
−Removed: At November 8, 2021, the total fair value of our equity securities increased to approximately $16.0 million.
+Added: At November 9, 2022, the total fair value of our equity securities decreased to approximately $147.0 million.
We continually monitor the fair value of the investments but are unable to predict future market volatility and any potential impact to the Consolidated Financial Statements.
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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.