2 unchanged sentences
Kimball Electronics operates internationally and thus is subject to potentially adverse movements in foreign currency rate changes.
+Added: Our principal foreign currency exposures include the Euro, Polish zloty, Romanian leu, Chinese renminbi, Thai baht, and Mexican peso.
Our risk management strategy includes the use of derivative financial instruments to hedge certain foreign currency exposures.
2 unchanged sentences
We estimate that a hypothetical 10% adverse change in foreign currency exchange rates from levels at June 30, 2022 relative to non-functional currency balances of monetary instruments, to the extent not hedged by derivative instruments, would not have a material impact on profitability in an annual period.
+Added: Actual future gains and losses could have a material impact in an annual period depending on changes or differences in market rates and interrelationships, hedging instruments, timing, and other factors.
Interest Rate Risk:
2 unchanged sentences
We estimate that a hypothetical 10% change in interest rates on borrowing levels at June 30, 2022 would not have a material impact of profitability in an annual period.
−Removed: The interest rate on certain borrowings under our credit facilities, including our primary credit facility, are based on LIBOR.
−Removed: The United Kingdom’s Financial Conduct Authority announced that after 2021 it would no longer persuade or compel panel banks to submit the rates required to calculate LIBOR.
−Removed: In March 2021, the administrator of LIBOR, the ICE Benchmark Administration, announced that it will cease publication of (i) the overnight and 1, 3, 6, and 12 months U.S.
−Removed: dollar LIBOR settings after June 30, 2023 and (ii) all other LIBOR settings, including the 1 week and 2 months U.S.
−Removed: dollar LIBOR settings, after December 31, 2021.
−Removed: If LIBOR is discontinued and we transition to a new rate, interest rates on our current or future indebtedness may be adversely affected.
−Removed: The Company is monitoring these developments.
+Added: The interest rate on certain borrowings under our credit facilities, including our primary credit facility, are based on the Secured Overnight Financing Rate (“SOFR”).
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.