7 unchanged sentences
Our operations outside of the U.S.
−Removed: represented 49.4% and 50.5% of our revenue during the years ended December 31, 2021 and 2020, respectively.
+Added: represented 48.2% and 49.4% of our revenue during years ended December 31, 2022 and 2021, respectively.
An increase or decrease in the strength of the U.S.
4 unchanged sentences
In several of our operations, we purchase inventory from manufacturers in Taiwan in U.S.
−Removed: dollars, which exposes us to fluctuations in the relationship between the local
−Removed: functional currency and the U.S.
+Added: dollars, which exposes us to fluctuations in the relationship between the local functional currency and the U.S.
dollar, as well as fluctuations between the U.S.
1 unchanged sentence
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 December 31, 2022 were immaterial.
−Removed: 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.
+Added: We do not currently attempt to hedge foreign currency exposure related to our foreign currency denominated inventory purchases in our Wholesale - North America operations, and we may not be able to pass on any resulting price increases to our customers.
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.
4 unchanged sentences
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.
−Removed: As of December 31, 2021, we had outstanding borrowings of €500 million under our Euro Notes (2024) and €250 million under our Eu ro Notes (2028), and €940 million and Swedish Krona ("SEK") 145 million un der our revolving credit facilities.
−Removed: 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);
−Removed: we had no foreign borrowings under our revolving credit facilities.
+Added: As of December 31, 2022, we had outstanding borrowings of €500 million under our Euro Notes (2024) and €250 million under our Euro Notes (2028), and €748 million and Swedish Krona ("SEK") 75 million under our revolving credit facilities.
+Added: As of December 31, 2021, we had outstanding borrowings of €500 million under our Euro Notes (2024) and €250 million under our Euro Notes (2028), and €940 million and SEK 145 million under our revolving credit facilities.
Interest Rates
−Removed: Our results of operations are exposed to changes in interest rates primarily with respect to borrowings under our credit facilities, where interest rates are tied to the prime rate, LIBOR, Canadian Dollar Offered Rate, Euro interbank Offered Rate, SONIA, or Swiss Average Rate Overnight.
+Added: Our results of operations are exposed to changes in interest rates primarily with respect to borrowings under our credit facilities, where interest rates are tied to the prime rate, LIBOR, SOFR, Canadian Dollar Offered Rate, Euro Interbank Offered Rate, SONIA, or Swiss Average Rate Overnight.
Therefore, we implemented a policy to manage our exposure to variable interest rates on a portion of our outstanding variable rate debt instruments through the use of interest rate swap contracts.
−Removed: 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: 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.
−Removed: We had none of our variable rate debt under our credit facilities at fixed rates at December 31, 2021 compared to 87% at December 31, 2020.
−Removed: See Note 9, "Long-Term Obligations" and Note 10, "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.
+Added: These contracts converted a portion of our variable rate debt to fixed rate debt, matching the currency, effective dates and maturity dates to specific debt instruments.
+Added: We designated 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: We had none of our variable rate debt under our credit facilities at fixed rates at December 31, 2022 or December 31, 2021.
+Added: In February 2023, we entered into two sets of interest rate swap agreements.
+Added: See Note 18, "Long-Term Obligations", Note 19, "Derivative Instruments and Hedging Activities" and Note 25, "Subsequent Events" to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
At December 31, 2022, we had approximately $1,786 million of variable rate debt that was not hedged.
1 unchanged sentence
Commodity Prices
−Removed: We are exposed to market risk related to price fluctuations in scrap metal and other metals (including precious metals such as platinum, palladium and rhodium).
+Added: We are exposed to market risk related to price fluctuations in scrap metal and other metals (including precious metals, such as platinum, palladium, and rhodium, contained in some recycled parts, such as catalytic converters).
Market prices of these metals affect the amount that we pay for our inventory and the revenue that we generate from sales of these metals.
2 unchanged sentences
Therefore, we can experience positive or negative gross margin effects in periods of rising or falling metals prices, particularly when such prices move rapidly.
−Removed: 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 2021 increased 83% compared to the average for 2020.
−Removed: The average prices of rhodium, platinum, and palladium increased by 77%, 22% and 7%, respectively, for the year ended December 31, 2021 over the averages for the year ended December 31, 2020.
+Added: Additionally, if market prices were to change at a higher or lower rate than our vehicle acquisition costs, we could experience a positive or negative effect on our operating margin.
+Added: The average of scrap metal prices for the year ended December 31, 2022 decreased by 3% over the average for 2021, noting that prices rose sequentially in 2021 and in the first half of 2022 before declining 31% in the second half of the year.
+Added: The average prices of rhodium, palladium, and platinum decreased by 22%, 11% and 11%, respectively, for the year ended December 31, 2022 over the average prices for the year ended December 31, 2021.
+Added: We are exposed to market risks related to inflation in product, labor, shipping, freight and general overhead costs.
+Added: In 2022, inflation has increased to rates beyond recent history, and we have experienced rising costs.
+Added: We have adjusted our prices and are driving productivity initiatives to mitigate the inflationary effects.
+Added: If these pressures continue or increase in severity, we may not be able to fully offset such higher costs through price increases and productivity initiatives.
+Added: Inflationary pressures in the future may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net revenue if the selling prices of our products do not increase with these increased costs, we cannot identify cost efficiencies, or the higher prices impact demand.
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.