7 unchanged sentences
Our operations outside of the U.S.
−Removed: represented 47.8% and 49.4% of our revenue during the nine months ended September 30, 2022 and the year ended December 31, 2021, respectively.
+Added: represented 49.8% and 48.2% of our revenue during the three months ended March 31, 2023 and the year ended December 31, 2022, respectively.
An increase or decrease in the strength of the U.S.
−Removed: dollar against these currencies by 10% would result in a 4.8% change in our consolidated revenue and a 2.9% change in our operating income for the nine months ended September 30, 2022.
+Added: dollar against these currencies by 10% would result in a 5.0% change in our consolidated revenue and a 3.6% change in our operating income for the three months ended March 31, 2023.
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.
5 unchanged sentences
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 September 30, 2022 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 March 31, 2023 were immaterial.
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.
−Removed: 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.
−Removed: As of September 30, 2022, we did not hold foreign currency forward contracts related to non-functional currency denominated debt.
+Added: To the extent that we are exposed to foreign currency fluctuations related to non-functional currency denominated transactions, we may hedge the exposure through the use of foreign currency forward contracts.
+Added: In March 2023, we entered into foreign currency forward contracts related to the Uni-Select Acquisition.
+Added: See Note 3, "Uni-Select Acquisition" and Note 17, "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.
Other than with respect to a portion of our foreign currency denominated inventory purchases and, from time to time, certain financing transactions, we do not hold derivative contracts to hedge foreign currency risk.
2 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 September 30, 2022, we had
−Removed: outstanding borrowings of €500 million under our Euro Notes (2024) and €250 million under our Euro Notes (2028), and €739 million and Swedish Krona ("SEK") 90 million under our revolving credit facilities.
+Added: As of March 31, 2023, we had outstanding borrowings of €500 million under our Euro Notes (2024) and €250 million under our Euro Notes (2028), and €807 million and Swedish Krona ("SEK") 70 million under our revolving credit facilities.
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 SEK 75 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 SOFR, prime rate, 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.
1 unchanged sentence
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.
−Removed: We had none of our variable rate debt under our credit facilities at fixed rates at September 30, 2022 or December 31, 2021.
+Added: We had none of our variable rate debt under our credit facilities at fixed rates at December 31, 2022.
+Added: However, in February 2023, we entered into two sets of interest rate swap agreements to hedge the variable rates on a portion of our credit agreement borrowings.
See Note 16, "Long-Term Obligations" and Note 17, "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 September 30, 2022, we had approximately $1,621 million of variable rate debt that was not hedged.
+Added: Additionally, in March 2023, we entered into two sets of interest rate swap agreements related to the Uni-Select Acquisition.
+Added: See Note 17, "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.
+Added: At March 31, 2023, we had approximately $1,135 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 $11 million over the next twelve months.
6 unchanged sentences
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.
−Removed: The average of scrap metal prices for the three months ended September 30, 2022 decreased by 29% over the average for the second quarter of 2022.
−Removed: The average prices of platinum, rhodium, and palladium decreased by 14%, 13% and 9%, respectively, for the three months ended September 30, 2022 over the average prices for the three months ended September 30, 2021.
+Added: The average of scrap metal prices for the three months ended March 31, 2023 increased by 33% over the average for the fourth quarter of 2022.
+Added: The average prices of rhodium, palladium, and platinum decreased by 44%, 37% and 4%, respectively, for the three months ended March 31, 2023 compared to the average prices for the three months ended March 31, 2022.
We are exposed to market risks related to inflation in product, labor, shipping, freight and general overhead costs.
−Removed: In 2022, inflation has increased to rates beyond recent history, and we have experienced rising costs.
−Removed: We have adjusted our prices and are driving productivity initiatives to mitigate the inflationary effects.
+Added: In 2022, and continuing into 2023, inflation increased to rates beyond recent history, and we experienced rising costs.
+Added: We adjusted our prices and drove productivity initiatives to mitigate the inflationary effects.
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.
−Removed: 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.
+Added: Inflationary pressures in the future may have an adverse effect on our ability to maintain current levels of gross margin and SG&A 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.