1 unchanged sentence
Foreign currency exchange rate risk
−Removed: We have foreign-based operations, primarily in Europe, South America and Asia, which accounted for approximately 22 percent of our net sales in the first nine months of 2020.
−Removed: Ingevity's significant operations outside the U.S.
−Removed: have designated the local currency as their functional currency.
+Added: We have non-U.S.-based operations, primarily in Europe, South America and Asia, which accounted for approximately 27 percent of our net sales in the first three months of 2021.
+Added: We have designated the local currency as the functional currency of our significant operations outside of the U.S.
The primary currencies for which we have exchange rate exposure are the U.S.
−Removed: dollar versus the euro, the Japanese yen and the Chinese renminbi.
−Removed: In addition, certain of our domestic operations have sales to foreign customers.
−Removed: In the conduct of our foreign operations, we also make inter-company sales.
+Added: dollar versus the euro, the Japanese yen, the pound sterling, and the Chinese renminbi.
+Added: In addition, our domestic operations have sales to foreign customers, and in the conduct of our foreign operations, we also make inter-company sales.
All of this exposes us to the effect of changes in foreign currency exchange rates.
−Removed: Our earnings are therefore subject to change due to fluctuations in foreign currency exchange rates when the earnings in foreign currencies are translated into U.S.
−Removed: Foreign exchange forward contracts are used to hedge firm and highly anticipated foreign currency cash flows.
−Removed: dollar versus the euro is our most significant foreign currency exposure.
−Removed: A hypothetical 10 percent change in the average euro to U.S.
−Removed: dollar exchange rate during the nine months ended September 30, 2020, would have changed our net sales and income before income taxes by approximately $2.8 million or less than one percent and $2.4 million or one percent, respectively.
+Added: Our earnings are, therefore, subject to change due to fluctuations in foreign currency exchange rates when our foreign currency denominated transactions are translated into U.S.
+Added: In some cases, we use foreign exchange forward contracts to hedge firm and highly anticipated foreign currency cash flows.
+Added: Our largest exposures are to the Chinese renminbi and the euro.
+Added: A hypothetical 10 percent change in the average Chinese renminbi and euro to U.S.
+Added: dollar exchange rates during the three months ended March 31, 2021, would have impacted our net sales and income before income taxes by approximately $4.7 million or two percent, and $1.9 million or three percent, respectively.
Interest rate risk
−Removed: Our revolving credit facility and term loan facility each include a variable interest rate component.
+Added: As of March 31, 2021, approximately $342 million of our borrowings include a variable interest rate component.
As a result, we are subject to interest rate risk with respect to such floating-rate debt.
−Removed: A 100 basis point increase in the variable interest rate component of our borrowings as of September 30, 2020 would increase our annual interest expense by approximately $9.0 million or 27 percent.
−Removed: We have entered into fixed-to-fixed cross-currency interest rate swaps with an aggregate notional amount of $166.2 million to limit exposure to interest rate increases related to a portion of the Company's floating rate indebtedness.
−Removed: This swap agreement hedges a portion of contractual floating rate interest through its expiration in July 2023.
−Removed: As a result, the Company's weighted average effective interest rate on the notional amount floating rate indebtedness will be 3.79% through May 2021.
−Removed: The fair value of this instrument at September 30, 2020 was an asset (liability) of $(0.4) million.
+Added: A 100 basis point increase in the variable interest rate component of our borrowings as of March 31, 2021 would increase our annual interest expense by approximately $3.4 million or seven percent.
+Added: As of March 31, 2021, we have entered into interest rate swaps with an aggregate notional amount of $166.2 million to limit exposure to interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $166.2 million of our floating rate debt to a fixed rate.
+Added: In accordance with the terms of the interest rate swap, we receive floating rate interest payments based upon three-month U.S.
+Added: dollar LIBOR and in return are obligated to pay interest at a fixed rate of 3.79 percent until July 2023.
+Added: The fair value of the interest rate swap was an asset (liability) of $(7.5) million and $(8.9) million at March 31, 2021 and December 31, 2020, respectively.
Other market risks
−Removed: Information about our other remaining market risks for the period ended September 30, 2020 does not differ materially from that discussed under Item 7A of our 2019 Annual Report.
+Added: Information about our other remaining market risks for the period ended March 31, 2021 does not differ materially from that discussed under Item 7A of our 2020 Annual Report.
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.