−Removed: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK:
−Removed: The following discussion about the Company's market risk involves forward-looking statements.
−Removed: Actual results could differ materially from those projected in the forward-looking statements.
−Removed: The Company has market risk related to changes in interest rates, commodity prices and foreign currency exchange rates.
−Removed: The Company does not generally use derivative financial instruments in connection with these market risks, except as noted below.
−Removed: Interest Rates - The Company's most significant long-term instrument is the domestic credit facility, which bears interest at variable rates based on LIBOR (Euro-LIBOR for balances drawn in Euros).
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK, (continued)
The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges:
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Based on the Company's assessment, all the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective.
−Removed: The fair value of the interest rate swaps reflected an unrealized loss, of $7.8 million ($5.9 million after-tax) at September 30, 2020 that is included in equity as part of AOCI.
−Removed: A decrease of 10% in market interest rates (e.g., a decrease from 5.0% to 4.5%) would result in a decrease of approximately $1.0 million in the fair value of the interest rate swaps.
+Added: The fair value of the interest rate swaps reflected an unrealized loss, net of unrealized gains, of $2.1 million ($1.6 million after-tax) at September 30, 2021 that is included in equity as part of AOCI.
+Added: A decrease of 10% in market interest rates (e.g., a decrease from 5.0% to 4.5%) would result in a decrease of approximately $217,000 in the fair value of the interest rate swaps.
Commodity Price Risks - In the normal course of business, the Company is exposed to commodity price fluctuations related to the purchases of certain materials and supplies (such as bronze ingot, steel, granite, fuel and wood) used in its manufacturing operations.
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dollar) of 10% in exchange rates would have resulted in a decrease in reported sales of $56.2 million and a decrease in reported operating income of $1.8 million for the year ended September 30, 2021.
−Removed: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK, (continued)
+Added: As of September 30, 2021, the Company had a foreign currency derivative contract (U.S.
+Added: Dollar/Euro cross currency swap) with a notional amount of $94.5 million designated as a net investment hedge of foreign operations.
+Added: The net unrealized gain for this swap contract at September 30, 2021 was of $22,000 (net of income taxes of $7,000).
+Added: As of September 30, 2021, the potential gain or loss in the fair value of the swap contract assuming a hypothetical 10% fluctuation in market rates would be approximately $10.3 million.
Actuarial Assumptions - The most significant actuarial assumptions affecting pension expense and pension obligations include the valuation of retirement plan assets, the discount rates and the estimated return on plan assets.
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The fair value of plan assets and discount rates are "point-in-time" measures, and volatility of the debt and equity markets makes estimating future changes in fair value of plan assets and discount rates challenging.
−Removed: The Company elected to value its principal retirement and other postretirement benefit plan liabilities using a modified assumption of future mortality that reflects a significant improvement in life expectancy over the previous mortality assumptions.
+Added: The Company elected to value its DB Plan and other postretirement benefit plan liabilities using a modified assumption of future mortality that reflects a significant improvement in life expectancy over the previous mortality assumptions.
Refer to Note 14, "Pension and Other Postretirement Plans" in Item 8 – "Financial Statements and Supplementary Data" for additional information.
−Removed: The following table summarizes the impact on the September 30, 2020 actuarial valuations of changes in the primary assumptions affecting the Company's retirement plans and supplemental retirement plan.
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK, (continued)
+Added: The following table summarizes the impact on the September 30, 2021 actuarial valuations of changes in the primary assumptions affecting the Company's retirement plans and SERP.
Impact of Changes in Actuarial Assumptions
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(Dollar amounts in thousands)
−Removed: (Decrease) increase in net benefit cost $ (5,098) $ 6,250 $ (1,638) $ 1,638 $ (1,717) $ 1,717
+Added: Increase (decrease) in net benefit cost $ 2,354 $ (2,322) $ (2,013) $ 2,013 $ (762) $ 762
(Decrease) increase in projected benefit obligation (32,595) 40,513 — — — —
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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.