7 unchanged sentences
Our operations outside of the U.S.
−Removed: represented 48.9% and 50.3% of our revenue during the three months ended March 31, 2020 and the year ended December 31, 2019 , respectively.
+Added: represented 49.1% and 50.3% of our revenue during the six months ended June 30, 2020 and the year ended December 31, 2019, respectively.
An increase or decrease in the strength of the U.S.
−Removed: dollar against these currencies by 10% would result in a 4.9% change in our consolidated revenue and a 1.9% change in our operating income for the three months ended March 31, 2020 .
+Added: dollar against these currencies by 10% would result in a 4.9% change in our consolidated revenue and a 2.2% change in our operating income for the six months ended June 30, 2020.
See our Results of Operations discussion in Part I, Item 2 of this Quarterly Report on Form 10-Q for additional information regarding the impact of fluctuations in exchange rates on our year over year results.
Additionally, we are exposed to foreign currency fluctuations with respect to the purchase of aftermarket products from foreign countries, primarily in Europe and Asia.
−Removed: To the extent that our inventory purchases are not denominated in the functional currency of the purchasing location, we are exposed to exchange rate fluctuations.
−Removed: In several of our operations, we
−Removed: purchase inventory from manufacturers in Taiwan in U.S.
+Added: To the extent that our inventory purchases are not denominated in the
+Added: functional currency of the purchasing location, we are exposed to exchange rate fluctuations.
+Added: In several of our operations, we purchase inventory from manufacturers in Taiwan in U.S.
dollars, which exposes us to fluctuations in the relationship between the local functional currency and the U.S.
1 unchanged sentence
dollar and the Taiwan dollar.
−Removed: We hedge our exposure to foreign currency fluctuations related to a portion of inventory purchases in our Europe operations, but the notional amount and fair value of these foreign currency forward contracts at March 31, 2020 were immaterial.
+Added: We hedge our exposure to foreign currency fluctuations related to a portion of inventory purchases in our Europe operations, but the notional amount and fair value of these foreign currency forward contracts at June 30, 2020 were immaterial.
We do not currently attempt to hedge foreign currency exposure related to our foreign currency denominated inventory purchases in our North America operations, and we may not be able to pass on any resulting price increases to our customers.
3 unchanged sentences
We have elected not to hedge the foreign currency risk related to the interest payments on foreign borrowings as we generate cash flows in the local currencies that can be used to fund debt payments.
−Removed: As of March 31, 2020 , we had outstanding borrowings of €500 million under our Euro Notes (2024), €1.0 billion under our Euro Notes (2026/28), and £203 million, €262 million, CAD $130 million, and SEK 270 million under our revolving credit facilities.
+Added: As of June 30, 2020, we had outstanding borrowings of €500 million under our Euro Notes (2024), €1.0 billion under our Euro Notes (2026/28), and £133 million, €184 million, CAD $130 million, and SEK 265 million under our revolving credit facilities.
As of December 31, 2019, we had outstanding borrowings of €500 million under our Euro Notes (2024), €1.0 billion under our Euro Notes (2026/28), and £208 million, €229 million, CAD $130 million, and SEK 270 million under our revolving credit facilities.
9 unchanged sentences
and Banco Bilbao Vizcaya Argentaria, S.A.).
−Removed: As of March 31, 2020 , we held eight interest rate swap contracts representing a total of $480 million of U.S.
+Added: As of June 30, 2020, we held eight interest rate swap contracts representing a total of $480 million of U.S.
dollar-denominated notional amount debt.
1 unchanged sentence
These swaps have maturity dates in January 2021 and June 2021.
−Removed: As of March 31, 2020 , the fair value of the interest rate swap contracts was a liability of $3 million .
+Added: As of June 30, 2020, the fair value of the interest rate swap contracts was a liability of $3 million.
The values of such contracts are subject to changes in interest rates.
−Removed: In addition to these interest rate swaps, as of March 31, 2020 , we held four cross currency swap agreements for a total notional amount of $463 million ( €431 million ) with maturity dates in October 2020 and January 2021.
+Added: In addition to these interest rate swaps, as of June 30, 2020, we held four cross currency swap agreements for a total notional amount of $459 million (€428 million) with maturity dates in October 2020 and January 2021.
These cross currency swaps contain an interest rate swap component and a foreign currency forward contract component that, combined with related intercompany financing arrangements, effectively convert variable rate U.S.
4 unchanged sentences
Bank of America, N.A.;
−Removed: As of March 31, 2020 , the fair value of the interest rate swap components of the cross currency swaps was a liability of $5 million , and the fair values of the foreign currency forward components were an asset of $5 million and a liability of $13 million .
+Added: As of June 30, 2020, the fair value of the interest rate swap components of the cross currency swaps was a liability of $4 million, and the fair values of the foreign currency forward components were an asset of $3 million and a liability of $21 million.
The values of these contracts are subject to changes in interest rates and foreign currency exchange rates.
−Removed: In total, we had 47% of our variable rate debt under our credit facilities at fixed rates at March 31, 2020 compared to 59% at December 31, 2019 .
+Added: In total, we had 64% of our variable rate debt under our credit facilities at fixed rates at June 30, 2020 compared to 59% at December 31, 2019.
See Note 9, "Long-Term Obligations" and Note 10, "Derivative Instruments and Hedging Activities" to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.
−Removed: At March 31, 2020 , we had approximately $ 1.1 billion of variable rate debt that was not hedged.
+Added: At June 30, 2020, we had approximately $533 million of variable rate debt that was not hedged.
Using sensitivity analysis, a 100 basis point movement in interest rates would change interest expense by $5 million over the next twelve months.
−Removed: Redeeming the U.S.
−Removed: Notes (2023) in January 2020 increased our unhedged variable rate debt by $415 million .
Commodity Prices
3 unchanged sentences
However, there is typically a lag between the effect on our revenue from metal price fluctuations and inventory cost changes, and there is no guarantee that the vehicle costs will decrease or increase at the same rate as the metals prices.
−Removed: Therefore, we can experience positive or negative gross margin effects in periods of rising or falling metals prices, particularly when such prices move rapidly.
+Added: Therefore, we can experience positive or negative gross margin effects in periods of rising or falling
+Added: metals prices, particularly when such prices move rapidly.
Additionally, if market prices were to change at a greater rate than our vehicle acquisition costs, we could experience a positive or negative effect on our operating margin.
−Removed: The average of scrap metal prices for the three months ended March 31, 2020 increased 23% over the average for the fourth quarter of 2019.
+Added: The average of scrap metal prices for the three months ended June 30, 2020 decreased 16% over the average for the first quarter of 2020.
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.