14 unchanged sentences
In addition to the exposure that results from unmatched debt, we are exposed to foreign currency risk to the extent that we enter into transactions denominated in currencies other than our operating subsidiaries’ respective functional currencies (non-functional currency risk), such as equipment purchases and programming contracts.
−Removed: Changes in exchange rates with respect to amounts recorded in our consolidated balance sheet related to these items will result in unrealized (based upon period-end exchange rates) or realized foreign currency transaction gains and losses upon settlement of the transactions.
+Added: Changes in exchange rates with respect to amounts recorded in our consolidated balance sheet related to these items will result in (i) unrealized foreign currency transaction gains and losses based upon period-end exchange rates or (ii) realized foreign currency transaction gains and losses upon settlement of the transactions.
Moreover, to the extent that our revenue, costs and expenses are denominated in currencies other than our respective functional currencies, we will experience fluctuations in our revenue, costs and expenses solely as a result of changes in foreign currency exchange rates.
1 unchanged sentence
In this regard, we have entered into foreign currency forward contracts to hedge certain of these risks.
−Removed: Certain non-functional currency risks related to our programming and other direct costs of services and other operating costs and expenses and property and equipment additions were not hedged as of December 31, 2022.
+Added: Certain non-functional currency risks related to our programming and other direct costs of services, other operating costs and
+Added: expenses and property and equipment additions were not hedged as of December 31, 2023.
For additional information concerning our foreign currency forward contracts, see note 7 to our consolidated financial statements.
6 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 2022 was to the CLP as 12% of our reported revenue for the period prior to the formation of the Chile JV in October 2022 was derived from VTR, whose functional currency was the CLP.
+Added: Our primary exposures to FX risk during 2023 were to (i) the CRC as 12% of our reported revenue for the period was derived from Liberty Costa Rica, whose functional currency is the CRC and (ii) the JMD as 9.0% of our reported revenue for the period was derived from C&W Jamaica, whose functional currency is the JMD.
In addition, our reported operating results are impacted by changes in the exchange rates for other local currencies in Latin America and the Caribbean.
We generally do not hedge against the risk that we may incur non-cash losses upon the translation of the financial statements of our operating subsidiaries and affiliates into U.S.
−Removed: The relationship between the (i) CLP, JMD and CRC and (ii) the U.S.
+Added: The relationship between the (i) CRC and JMD and (ii) the U.S.
dollar, which is our reporting currency, is shown below, per one U.S.
As of December 31,
−Removed: CLP N/A 852.00
CRC 523.04 591.80
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Year ended December 31,
−Removed: 2022 2021 2020
Average rates:
−Removed: CLP (a) 859.78 759.90 791.70
CRC 543.74 647.44
JMD 153.51 153.42
−Removed: (a) The CLP rate of 859.78 for 2022 represents the average rate for the period prior to the formation of the Chile JV.
Inflation and Foreign Investment Risk
6 unchanged sentences
We are exposed to changes in interest rates primarily as a result of our borrowing activities, which include fixed-rate and variable-rate borrowings by our borrowing groups.
−Removed: Our primary exposure to variable-rate debt is through the LIBOR-indexed debt of C&W, Liberty Puerto Rico and Liberty Costa Rica.
−Removed: In July 2017, the U.K.
−Removed: Financial Conduct Authority (the authority that regulates LIBOR) announced that its intent to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
−Removed: On November 30, 2020, the administrator of U.S.
−Removed: dollar LIBOR announced a delay in the phase out of a majority of the U.S.
−Removed: dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications phased out at the end of 2021.
−Removed: Currently, it is not possible to predict the exact transitional arrangements, or associated timelines, for calculating applicable reference rates that may be made in the U.S., or elsewhere given that a number of outcomes are possible, including the cessation of the publication of one or more reference rates.
−Removed: Our loan documents contain customary provisions that contemplate alternative calculations of the applicable base rate once LIBOR is no longer available.
−Removed: Currently, we do not expect that these alternative calculations will be materially different from what would have been calculated under LIBOR.
−Removed: Additionally, no mandatory prepayment or redemption provisions would be triggered under our loan agreements in the event that the LIBOR rate is not available.
−Removed: Also, it is possible that a new reference rate that applies to our LIBOR-indexed debt could be different than a new reference rate that applies to our LIBOR-indexed derivative instruments.
−Removed: We anticipate managing any increased variable-rate exposure caused by this possible difference through modifications to our debt and/or derivative instrument agreements, however, future market conditions may not allow immediate implementation of desired modifications, and we may incur significant associated costs.
+Added: Our primary exposure to variable-rate debt is through the SOFR-indexed debt of C&W and Liberty Puerto Rico.
+Added: During May 2023, the terms of the agreements underlying certain of our debt instruments at C&W and Liberty Puerto Rico were amended, which resulted in (i) the replacement of LIBOR-based benchmark rates with Adjusted Term SOFR for interest periods commencing after June 30, 2023, (ii) the modification of the provisions for determining an alternative rate of interest upon the occurrence of certain events relating to the availability of interest rate benchmarks and (iii) certain conforming changes.
+Added: For additional information concerning the details of our debt see note 10 to our consolidated financial statements.
In general, we seek to enter into derivative instruments to protect against increases in the interest rates on our variable-rate debt.
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We use interest rate derivative contracts to exchange, at specified intervals, the difference between fixed and variable interest rates calculated by reference to an agreed-upon notional principal amount.
−Removed: At December 31, 2022, we paid a fixed or capped rate of interest on 95% of our total debt, which includes the impact of our interest rate derivative contracts.
−Removed: The final maturity dates of our various portfolios of interest rate derivative instruments generally match the respective maturities of the underlying
−Removed: variable-rate debt.
+Added: At December 31, 2023, we paid a fixed or capped rate of
+Added: interest on 96% of our total debt, which includes the impact of our interest rate derivative contracts.
+Added: The final maturity dates of our various portfolios of interest rate derivative instruments match the respective maturities of the underlying variable-rate debt.
In this regard, we use judgment to determine the appropriate maturity dates of our portfolios of interest rate derivative instruments, taking into account the relative costs and benefits of different maturity profiles in light of current and expected future market conditions, liquidity issues and other factors.
30 unchanged sentences
dollar equivalents presented below are based on interest rates and exchange rates that were in effect as of December 31, 2023.
−Removed: These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods.
+Added: These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments or receipts required in future periods.
For additional information regarding our derivative instruments, including our counterparty credit risk, see note 7 to our consolidated financial statements.
12 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.