9 unchanged sentences
In addition, for certain transactions that are denominated in a currency other than the engaging entity’s functional currency, we may enter into foreign currency derivative contracts to further manage our foreign currency risk.
−Removed: In fiscal 2020, we recorded a net gain of less than $1 million within our statement of operations related to foreign currency derivative contracts.
+Added: In fiscal 2021, we recorded a net loss of less than $1 million within our statement of operations related to foreign currency derivative contracts.
In addition, our consolidated financial results are impacted by the translation of revenue and expenses in foreign currencies into U.S.
5 unchanged sentences
however, this impact will be offset, usually to a large degree, with a corresponding effect on our cost of sales and other expenses.
−Removed: In fiscal 2020, changes in foreign currency exchange rates unfavorably impacted our sales by $46 million;
−Removed: however, the impact on our operating income was less than $3 million.
+Added: In fiscal 2021, changes in foreign currency exchange rates favorably impacted our sales by $28 million;
+Added: however, the impact on our operating income was $2 million.
Foreign currency exchange rate risk can be estimated by measuring the impact of a near-term adverse movement of 10 percent in foreign currency exchange rates.
8 unchanged sentences
Interest on both our term loans and borrowings under our primary multi-currency revolving credit facility is based upon a variable interest rate, primarily either LIBOR or EURIBOR, plus 137.5 to 250 basis points, depending on our leverage ratio.
−Removed: For purposes of calculating the variable interest rate under our current credit agreement, LIBOR cannot be less than one percent.
As a result, we are subject to risk of fluctuations in LIBOR and EURIBOR and changes in our leverage ratio, which would affect the variable interest rate on our term loans and revolving credit facility and could create variability in interest expense.
3 unchanged sentences
We are dependent upon the supply of raw materials and supplies in our production processes and, from time to time, enter into firm purchase commitments for aluminum, copper, nickel, and natural gas.
−Removed: Commodity price risk is most prevalent to our vehicular businesses, which provide customized production and service parts to customers under multi-year programs.
−Removed: In order to mitigate commodity price risk specific to these long-term sales programs, we maintain contract provisions with certain customers that allow us to prospectively adjust prices based upon raw material price fluctuations.
+Added: We seek to mitigate commodity price risk by adjusting product pricing in response to any applicable price increases.
+Added: In addition, we maintain contract provisions with certain vehicular customers that provide for prospective price adjustments based upon changes in raw material prices.
These prospective price adjustments generally lag behind the actual raw material price fluctuations by three months or longer, and typically the contract provisions are limited to the underlying material cost based upon the London Metal Exchange and exclude additional cost elements, such as related premiums and fabrication.
−Removed: For our industrial businesses, we predominantly seek to mitigate commodity price risk by adjusting product pricing in response to any applicable price increases.
In an effort to manage and reduce our costs, we have been consolidating our supply base.
8 unchanged sentences
Our principal credit risk consists of outstanding trade accounts receivable.
−Removed: At March 31, 2020, 34 percent of our trade accounts receivable balance was concentrated with our top ten customers.
−Removed: These customers operate primarily in the automotive, commercial vehicle, off-highway, data center cooling and commercial air conditioning markets and are influenced by similar market and general economic factors.
+Added: At March 31, 2021, 35 percent of our trade accounts receivable was concentrated with our top ten customers.
+Added: These customers operate primarily in the commercial vehicle, off-highway, automotive and light vehicle, commercial air conditioning, and refrigeration markets and are influenced by similar market and general economic factors.
In the past, credit losses from our customers have not been significant, nor have we experienced a significant increase in credit losses in connection with the COVID-19 pandemic.
14 unchanged sentences
Economic risk represents the possibility of loss resulting from economic instability in certain areas of the world or downturns in markets in which we operate.
−Removed: We sell a broad range of products that provide thermal solutions to customers operating in diverse markets, including the automotive, commercial vehicle, off-highway, and commercial, industrial, and building HVAC&R markets.
−Removed: The COVID-19 pandemic has negatively impacted these markets;
−Removed: the duration and severity of the impacts of COVID-19 on these markets are currently uncertain.
−Removed: We are monitoring economic conditions in the U.S.
−Removed: and abroad and the impacts associated with the COVID-19 pandemic.
+Added: We sell a broad range of products that provide thermal solutions to customers operating in diverse markets, including the commercial, industrial, and building HVAC&R and commercial vehicle, off-highway, and automotive and light vehicle markets.
+Added: The COVID-19 pandemic has negatively impacted many of these markets.
+Added: While conditions in these markets have been steadily improving, future impacts of the COVID-19 pandemic are uncertain.
Considering our global presence, we also encounter risks imposed by potential trade restrictions, including tariffs, embargoes, and the like.
26 unchanged sentences
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.