7 unchanged sentences
Our operations outside of the U.S.
−Removed: represented 50.3% and 47.9% of our revenue during 2019 and 2018 , respectively.
+Added: represented 50.5% and 50.3% of our revenue during the years ended December 31, 2020 and 2019, respectively.
An increase or decrease in the strength of the U.S.
9 unchanged sentences
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.
−Removed: Other than with respect to a portion of our foreign currency denominated inventory purchases, we do not hold derivative contracts to hedge foreign currency risk.
+Added: To the extent that we are exposed to foreign currency fluctuations related to non-functional currency denominated financing transactions, we may hedge the exposure through the use of foreign currency forward contracts.
+Added: As of December 31, 2020, we held short term foreign currency forward contracts with notional amounts of €142 million, £75 million and SEK 227 million.
+Added: Only the SEK denominated foreign currency forward contract was designated as a cash flow hedge;
+Added: the fair value was a liability of $1 million as of December 31, 2020.
+Added: In February 2021, we entered into a short term foreign currency forward contract for $250 million to mitigate our exposure to non-functional currency borrowings in our European operations.
+Added: We currently expect to enter into a similar instrument when this one matures in the first quarter of 2021.
+Added: The values of these contracts are subject to changes in foreign currency exchange rates.
+Added: Other than with respect to a portion of our foreign currency denominated inventory purchases and certain financing transactions, we do not hold derivative contracts to hedge foreign currency risk.
Our net investment in foreign operations is partially hedged by the foreign currency denominated borrowings we use to fund foreign acquisitions;
however, our ability to use foreign currency denominated borrowings to finance our foreign operations may be limited based on local tax laws.
−Removed: 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 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.
+Added: We have elected not to hedge the foreign currency risk related to the interest payments on foreign third party borrowings as we generate cash flows in the local currencies that can be used to fund debt payments.
+Added: As of December 31, 2020, we had outstanding borrowings of €500 million under our Euro Notes (2024) and €1.0 billion under our Euro Notes (2026/28);
+Added: we had no foreign borrowings 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.
3 unchanged sentences
These contracts convert a portion of our variable rate debt to fixed rate debt, matching the currency, effective dates and maturity dates to specific debt instruments.
−Removed: Net interest payments or receipts from interest rate swap contracts are included as adjustments to interest expense.
+Added: We designate our interest rate swap contracts as cash flow hedges, and net interest payments or receipts from interest rate swap contracts are included as adjustments to interest expense.
+Added: As of December 31, 2020, we held interest rate swap contracts with a total notional amount of $480 million, maturing in January 2021 and June 2021 ($150 million remains outstanding as of the filing date of this Annual Report on Form 10-K).
All of our interest rate swap contracts have been executed with banks that we believe are creditworthy (Wells Fargo Bank, N.A.;
3 unchanged sentences
and Banco Bilbao Vizcaya Argentaria, S.A.).
−Removed: As of December 31, 2019 , we held eight interest rate swap contracts representing a total of $480 million of U.S.
−Removed: dollar-denominated notional amount debt.
−Removed: Our interest rate swap contracts are designated as cash flow hedges and modify the variable rate nature of that portion of our variable rate debt.
−Removed: These swaps have maturity dates ranging from January 2021 through June 2021.
−Removed: As of December 31, 2019 , the fair value of the interest rate swap contracts was an asset of $3 million .
+Added: As of December 31, 2020, the fair value of the interest rate swap contracts was a liability of $1 million.
The values of such contracts are subject to changes in interest rates.
−Removed: In addition to these interest rate swaps, as of December 31, 2019 we held four cross currency swap agreements for a total notional amount of $467 million (€435 million) with maturity dates in October 2020 and January 2021.
+Added: In addition to these interest rate swaps, as of December 31, 2020, we held cross currency swap agreements for a total notional amount of €340 million with maturity dates in 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.
2 unchanged sentences
dollars and euros in connection with intercompany financing arrangements.
−Removed: The cross currency swaps were also executed with banks we believe
−Removed: are creditworthy (Wells Fargo Bank, N.A.;
+Added: The cross currency swaps were also executed with banks we believe are creditworthy (Wells Fargo Bank, N.A.;
Bank of America, N.A.;
and MUFG Bank, Ltd.
−Removed: ("MUFG") (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.)).
−Removed: As of December 31, 2019 , the fair values of the interest rate swap components of the cross currency swaps were an immaterial asset and a liability of $1 million, and the fair values of the foreign currency forward components were an asset of $3 million and a liability of $23 million.
+Added: As of December 31, 2020,
+Added: the fair value of our cross currency swaps was a liability of $56 million.
The values of these contracts are subject to changes in interest rates and foreign currency exchange rates.
−Removed: In total, we had 59% of our variable rate debt under our credit facilities at fixed rates at December 31, 2019 compared to 57% at December 31, 2018 .
+Added: In total, we had 87% (16% excluding the cash flow hedges that matured in January 2021) of our variable rate debt under our credit facilities at fixed rates at December 31, 2020 compared to 59% at December 31, 2019.
See Note 10, "Long-Term Obligations" and Note 11, "Derivative Instruments and Hedging Activities" to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
1 unchanged sentence
Using sensitivity analysis, a 100 basis point movement in interest rates would change interest expense by $1 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
5 unchanged sentences
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 2019 has decreased 28% over the average for 2018 .
+Added: The average of scrap metal prices for 2020 was relatively flat compared to the average for 2019.
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.