8 unchanged sentences
In order to mitigate this risk, we actively manage the denominations of our cash balances in light of our and our subsidiaries’ forecasted liquidity requirements.
−Removed: At December 31, 2021, $468.8 million or 51.5%, $387.3 million or 42.5% and $36.9 million or 4.1% of our consolidated cash balances were denominated in U.S.
−Removed: dollars, euros and British pound sterling, respectively.
+Added: At December 31, 2022 and 2021, our consolidated cash balances included $1,307.9 million or 75.8% and $387.3 million or 42.5%, respectively, denominated in euros and $347.2 million or 20.1% and $468.8 million or 51.5%, respectively, denominated in U.S.
+Added: At December 31, 2022 and 2021, the balances of our consolidated investments held under SMAs of $ 2,854.6 million and $ 2,801.3 million, respectively, were denominated entirely in U.S.
Foreign Currency Risk
8 unchanged sentences
Generally, we will consider hedging non-functional currency risks when the risks arise from agreements with third parties that involve the future payment or receipt of cash or other monetary items to the extent that we can reasonably predict the timing and amount of such payments or receipts and the payments or receipts are not otherwise hedged.
−Removed: In this regard, we have entered into foreign currency forward contracts to hedge certain of these risks.
−Removed: For additional information concerning our foreign currency forward contracts, see note 8 to our consolidated financial statements.
+Added: In this regard, we have entered into foreign currency forward and option contracts to hedge certain of these risks.
+Added: For additional information concerning our foreign currency forward and option contracts, see note 8 to our consolidated financial statements.
We are also exposed to unfavorable and potentially volatile fluctuations of the U.S.
5 unchanged sentences
Accordingly, we may experience a negative impact on our comprehensive earnings or loss and equity with respect to our holdings solely as a result of FX.
−Removed: Our primary exposure to FX risk during the three months ended December 31, 2021 was to the euro and Swiss franc, as 55.2% and 43.7% of our reported revenue during such period was derived from subsidiaries whose functional currencies are the euro and Swiss franc, respectively.
+Added: Our primary exposure to FX risk during the three months ended December 31, 2022 was to the euro and Swiss franc, as 55.1% and 43.6% of our reported revenue during the period was derived from subsidiaries whose functional currencies are the euro and Swiss franc, respectively.
In addition, our reported operating results are impacted by changes in the exchange rates for other local currencies in Europe.
−Removed: We do not hedge against the risk that we may incur non-cash losses upon the translation of the financial statements of our subsidiaries and affiliates into U.S.
−Removed: For information regarding certain currency instability risks with respect to the British pound sterling and euro, see Management’s Discussion and Analysis of Financial Condition and Results of Operations — Overview above.
+Added: We do not hedge against the risk that we may incur non-cash
+Added: losses upon the translation of the financial statements of our subsidiaries and affiliates into U.S.
+Added: For additional information regarding certain currency instability risks, see Management’s Discussion and Analysis of Financial Condition and Results of Operations above.
The relationships between the primary currencies of the countries in which we operate and the U.S.
2 unchanged sentences
Euro 0.9337 0.8782
−Removed: British pound sterling 0.7388 0.7325
Swiss franc 0.9219 0.9114
+Added: British pound sterling 0.8265 0.7388
Polish zloty 4.3686 4.0285
3 unchanged sentences
Euro 0.9509 0.8455 0.8775
−Removed: British pound sterling 0.7269 0.7796 0.7835
Swiss franc 0.9548 0.9139 0.9389
+Added: British pound sterling 0.8112 0.7269 0.7796
Polish zloty 4.4555 3.8595 3.8979
19 unchanged sentences
Financial Conduct Authority (the authority that regulates LIBOR) announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
−Removed: Additionally, the European Money Markets Institute (the authority that administers EURIBOR) announced that measures would need to be undertaken by the end of 2021 to reform EURIBOR to ensure compliance with the E.U.
+Added: Additionally, the European Money Markets Institute (the authority that administers EURIBOR) announced that measures would need to be undertaken by the end of 2021 to reform
+Added: EURIBOR to ensure compliance with the E.U.
Benchmarks Regulation.
In November 2020, ICE Benchmark Administration (the entity that administers LIBOR) announced its intention to continue publishing USD LIBOR rates until June 30, 2023, with the exception of the one-week and two-month rates which, along with all CHF and GBP LIBOR rates, it ceased to publish after December 31, 2021.
−Removed: While this extension allows additional runway on existing contracts using USD LIBOR rates, companies
−Removed: are still encouraged to transition away from using USD LIBOR as soon as practicable and should not enter into new contracts that use USD LIBOR after 2021.
+Added: Furthermore, in November 2022, the U.K.
+Added: Financial Conduct Authority proposed that certain tenors of USD LIBOR would continue to be published on a synthetic basis until the end of September 2024.
+Added: While this extension allows additional runway on existing contracts using USD LIBOR rates, companies are still encouraged to transition away from using USD LIBOR as soon as practicable and should not enter into new contracts that use USD LIBOR after 2021.
The methodology for EURIBOR has been reformed and EURIBOR has been granted regulatory approval to continue to be used.
9 unchanged sentences
Weighted Average Variable Interest Rate.
−Removed: At December 31, 2021, the outstanding principal amount of our variable-rate indebtedness aggregated $9.6 billion, and the weighted average interest rate (including margin) on such variable-rate indebtedness was approximately 2.7%, excluding the effects of interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.
−Removed: Assuming no change in the amount outstanding, and without giving effect to any interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, a hypothetical 50 basis point (0.50%) increase (decrease) in our weighted average variable interest rate would increase (decrease) our annual consolidated interest expense and cash outflows by $48.0 million.
+Added: At December 31, 2022 and 2021, the outstanding principal amount of our variable-rate indebtedness aggregated $9.3 billion and $9.6 billion, respectively, and the weighted average interest rate (including margin) on such variable-rate indebtedness was approximately 5.9% and 2.7%, respectively, excluding the effects of interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.
+Added: Assuming no change in the amount outstanding at December 31, 2022, and without giving effect to any interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, a hypothetical 50 basis point (0.50%) increase (decrease) in our weighted average variable interest rate would increase (decrease) our annual consolidated interest expense and cash outflows by $46.5 million.
As discussed above and in note 8 to our consolidated financial statements, we use interest rate derivative contracts to manage our exposure to increases in variable interest rates.
3 unchanged sentences
We manage these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties.
−Removed: In this regard, credit risk associated with our derivative instruments and undrawn debt facilities is spread across a relatively broad counterparty base of banks and financial institutions.
+Added: In this regard, credit risk associated with our derivative instruments and undrawn debt facilities is spread across a relatively broad counterparty base of banks and financial institutions, however notwithstanding, given the size of our derivative portfolio, the default of certain counterparties could have a significant impact on our consolidated statements of operations.
Collateral is generally not posted by either party under the derivative instruments of our subsidiary borrowing groups.
1 unchanged sentence
To date, neither the access to nor the value of our cash and cash equivalent balances have been adversely impacted by liquidity problems of financial institutions.
−Removed: At December 31, 2021, our exposure to counterparty credit risk included (i) derivative assets with an aggregate fair value of $57.8 million, (ii) cash and cash equivalent and restricted cash balances of $917.3 million and (iii) aggregate undrawn debt facilities of $1,560.3 million.
+Added: At December 31, 2022 and 2021, our exposure to counterparty credit risk included (i) cash and cash equivalent and restricted cash balances of $1.7 billion and $0.9 billion, respectively, (ii) aggregate undrawn debt facilities of $1.5 billion and $1.6 billion, respectively, and (iii) derivative assets with an aggregate fair value of $922.5 million and $57.8 million, respectively.
Each of our subsidiary borrowing groups have entered into derivative instruments under master agreements with each counterparty that contain master netting arrangements that are applicable in the event of early termination by either party to such derivative instrument.
−Removed: The master netting arrangements are limited to the derivative instruments, and derivative-related debt instruments, governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups.
+Added: The master netting arrangements are limited to the derivative instruments governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups.
Under our derivative contracts, it is generally only the non-defaulting party that has a contractual option to exercise early termination rights upon the default of the other counterparty and to set off other liabilities against sums due upon such termination.
16 unchanged sentences
dollar would have decreased (increased) the aggregate fair value of the UPC Holding cross-currency and interest rate derivative contracts by approximately €414 million ($444 million);
−Removed: (ii) an instantaneous increase (decrease) of 10% in the value of the Swiss franc and Polish zloty relative to the euro would have decreased (increased) the aggregate fair value of the UPC Holding cross-currency and interest rate derivative contracts by approximately €338 million ($385 million);
+Added: (ii) an instantaneous increase (decrease) of 10% in the value of the Swiss franc relative to the euro would have decreased (increased) the aggregate fair value of the UPC Holding cross-currency and interest rate derivative contracts by approximately €325 million ($348 million);
(iii) an instantaneous increase (decrease) in the relevant base rate of 50 basis points (0.50%) would have decreased (increased) the aggregate fair value of the UPC Holding cross-currency and interest rate derivative contracts by approximately €99 million ($106 million).
26 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.