18 unchanged sentences
subsidiaries accounted for approximately 63% to 67% of its consolidated net sales.
−Removed: These foreign operations also represent a significant portion of Quaker Houghton’s assets and liabilities.
+Added: These foreign operations also represent a significant portion of the Company’s assets and liabilities.
In addition, the Company occasionally sources inventory among its worldwide operations.
2 unchanged sentences
Generally, these foreign operations use the local currency as their functional currency.
−Removed: Accordingly, Quaker Houghton’s financial results are affected by foreign currency fluctuations, particularly between the U.S.
+Added: Accordingly, the Company’s financial results are affected by foreign currency fluctuations, particularly between the U.S.
dollar and the euro, the British pound sterling, the Brazilian real, the Mexican peso, the Chinese renminbi and the Indian rupee.
−Removed: Quaker Houghton’s results can be materially affected depending on the volatility and magnitude of foreign exchange rate changes.
+Added: The Company’s results can be materially affected depending on the volatility and magnitude of foreign exchange rate changes.
If the euro, the British pound sterling, the Brazilian real, the Mexican peso, the Chinese renminbi and the Indian rupee had all weakened or strengthened by 10% against the U.S.
1 unchanged sentence
Similarly, pre-tax earnings would increase or decrease by approximately $10.5 million.
+Added: The Company uses cross currency swaps, designated as net investment hedges, to hedge portions of its net investment in its European and Japanese operations.
+Added: The net investment hedges serve to offset the foreign currency translation risk from the Company’s foreign operations.
+Added: See Note 24, Hedging Activities , to the Consolidated Financial Statements for additional details.
Commodity Price Risk .
−Removed: Many of the raw materials used by Quaker Houghton are derivatives of commodity chemicals, which can experience significant price volatility, and therefore Quaker Houghton’s earnings can be materially affected by market changes in raw material prices.
+Added: Many of the raw materials used by the Company are derivatives of commodity chemicals, which can experience significant price volatility, and therefore the Company’s earnings can be materially affected by market changes in raw material prices.
At times, the Company has entered into fixed-price purchase contracts to manage this risk.
−Removed: These contracts provide protection to Quaker Houghton if the prices for the contracted raw materials rise;
+Added: These contracts provide protection to the Company if the prices for the contracted raw materials rise;
however, in certain circumstances, the Company may not realize the benefit if such prices decline.
1 unchanged sentence
Credit Risk .
−Removed: Quaker Houghton establishes allowances for credit losses for estimated losses resulting from the inability of its customers to make required payments.
−Removed: If the financial condition of Quaker Houghton’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required.
+Added: The Company establishes allowances for credit losses for estimated losses resulting from the inability of its customers to make required payments.
+Added: If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required.
Downturns in the overall economic climate may also exacerbate specific customer financial issues.
1 unchanged sentence
Though infrequent, when a bankruptcy occurs, Quaker Houghton must judge the amount of proceeds, if any, that may ultimately be received through the bankruptcy or liquidation process.
−Removed: In addition, as part of its terms of trade, Quaker Houghton may custom manufacture products for certain large customers and may also ship products on a consignment basis.
+Added: In addition, as part of its terms of trade, the Company may custom manufacture products for certain large customers and may also ship products on a consignment basis.
These practices may increase the Company’s exposure to customer credit risk, including bankruptcy and may require a write-down or disposal of inventory due to obsolescence or limited marketability as well as a reserve for accounts receivable.
3 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.