5 unchanged sentences
To mitigate cross-currency transaction risk, we analyze significant forecast exposures where we expect receipts or payments in a currency other than the functional currency of our operations, and from time to time we may strategically enter into short-term foreign currency forward contracts to lock in some or all of the cash flows associated with these transactions.
−Removed: In most of these countries, the exposure to foreign currency movements is limited because the operating revenues and expenses of our business units are substantially denominated in the local currency.
+Added: In most of the countries in which we operate, the exposure to foreign currency movements is limited because the operating revenues and expenses of our business units are substantially denominated in the local currency.
We also are subject to currency translation risk associated with converting our foreign operations’ financial statements into U.S.
1 unchanged sentence
We use foreign currency derivative contracts, with a total notional amount of $91.6 million as of December 31, 2021, in order to manage the effect of exchange fluctuations on forecasted sales, purchases, acquisitions, inventory and capital expenditures and certain intercompany transactions that are denominated in foreign currencies.
−Removed: We use foreign currency derivative contracts, with a total notional amount of $23.7 million, to hedge the effects of translation gains and losses on intercompany loans and
+Added: We use foreign currency derivative contracts, with a total notional amount of $376.5 million, to hedge the effects of translation gains and losses on intercompany loans and interest.
We also use foreign currency derivative contracts, with a total notional amount of $107.0 million, to mitigate the impact to the consolidated earnings of the Company from the effect of the translation of certain subsidiaries’ local currency results into U.S.
14 unchanged sentences
The risk management control systems involve the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on our future cash flows.
−Removed: The U.K.’s Financial Conduct Authority has announced the intent to phase out the use of LIBOR by the end of 2021.
+Added: The U.K.’s Financial Conduct Authority has announced the intent to phase out the use of LIBOR.
In November 30, 2020, the ICE Benchmark Administration Limited (IBA) announced a consultation on its intention to cease the publication of the one-week and two-month USD LIBOR tenors immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR tenors immediately following the LIBOR publication on June 30, 2023.
−Removed: Prior to LIBOR being discontinued, we will need to renegotiate the terms of certain of our credit agreements and derivative contracts which reference LIBOR as a benchmark in determining the interest rate.
As a result, we may incur incremental interest expense depending on the new standard determined.
2 unchanged sentences
We plan to evaluate the remaining expedients for adoption, as applicable, when contracts are modified.
−Removed: The potential effect of any such event on our cost of capital cannot yet be determined and we are still assessing the impact on our consolidated financial condition, results of operations, and cash flows.
+Added: Although our ABL Facility agreement and Term Loan Facility agreement contain provisions intended to address the anticipated unavailability of LIBOR, we may need to amend these and other contracts to accommodate any replacement rate.
+Added: The potential effect of any such event on our cost of capital cannot yet be determined but we do not expect it to have a material impact on our consolidated financial condition, results of operations, or cash flows.
Raw Materials Risk
4 unchanged sentences
See Item 1A- Risk Factors - Prices and availability of the raw materials we use to manufacture our products are subject to fluctuations and we may be unable to pass along to our customers the effects of any price increases.
−Removed: We have not historically used derivatives or similar instruments to hedge commodity price fluctuations.
+Added: We have not historically used derivatives or similar instruments to hedge commodity price fluctuations, but may in the future.
We purchase from multiple geographically diverse companies to mitigate the adverse impact of higher prices for our raw materials.
4 unchanged sentences
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.