6 unchanged sentences
We do not enter into derivative financial instruments for speculative purposes.
−Removed: The following discussion and analysis only addresses our market risk and does not address other financial risks that we face in the normal course of business, including credit risk and liquidity risk.
+Added: The following discussion and analysis only address our market risk and does not address other financial risks that we face in the normal course of business, including credit risk and liquidity risk.
Interest Rate Risk
3 unchanged sentences
Appropriate hedging instruments are in place to mitigate the exposure arising from increasing interest rates.
−Removed: The table below shows the sensitivity of the interest expense to changes in the interest rate, after the impact of hedge accounting.
+Added: The table below shows the sensitivity of our interest expense to changes in the interest rate, after the impact of hedge accounting.
It shows the change resulting from a hypothetical fluctuation in the three-month LIBOR of 50 basis points (0.50%) as of December 31, 2022, assuming that all other variables remain unchanged.
1 unchanged sentence
Changes in interest rates would also have a related impact on our foreign currency (USD) exposure.
−Removed: The sensitivity analysis assumes that the hypothetical interest rate was valid and that the Revolving Credit Facility was utilized in the full amount over the course of the entire year.
+Added: The sensitivity analysis assumes that the hypothetical interest rate was valid and that our Revolving credit facility was utilized in the full amount over the course of the entire year.
The effect of this hypothetical change in the interest rate of the variable rate loan on our consolidated Income before earnings in affiliated companies and income taxes ("income before taxes" in this section) for the year ended December 31, 2022 is as follows:
2 unchanged sentences
(Increase) decrease in interest expense $ (0.7) $ 0.8
−Removed: Increase (decrease) in equity (cash flow hedge reserve) 1.9 (1.1)
Increase (decrease) in total comprehensive income before taxes 0.7 (0.8)
−Removed: The above table does not include the impact of hedges.
+Added: Orion Engineered Carbons S.A
Foreign Currency Risk
2 unchanged sentences
The translation gains or losses that result from the process of translating the euro denominated financial statements to U.S.
−Removed: dollars are deferred in Accumulated other comprehensive income until such time as those entities may be substantially liquidated or sold.
+Added: dollar are deferred in Accumulated other comprehensive income until such time as those entities may be substantially liquidated or sold.
Changes in the value of the U.S.
dollar relative to the euro can therefore have a significant impact on Comprehensive income.
−Removed: Orion Engineered Carbons S.A
The table below shows the sensitivity with regard to the effect of a change in the euro/U.S.
dollar exchange rate using the outstanding amount and the interest for the U.S.
−Removed: Dollar-denominated Term Loan issued by a 100% wholly owned subsidiary whose functional currency is Euro.
+Added: dollar-denominated Term Loan issued by a 100% wholly owned subsidiary whose functional currency is the euro.
A fluctuation of the euro/U.S.
5 unchanged sentences
FX gain (loss) in financial result $ 9.0 $ (11.0)
−Removed: Dollar/Euro exchange rate as of December 31, 2021:
−Removed: The above table does not include the impact of hedges.
+Added: (1) As of December 31, 2022:
+Added: €1 = $1.0666 (U.S.).
Some of our operations enter into transactions that are not denominated in their functional currency.
3 unchanged sentences
Our net position in foreign currencies is monitored daily.
−Removed: We maintain risk management control practices to monitor foreign currency risk attributable to our inter-company and third party outstanding foreign currency balances.
+Added: We maintain risk management control practices to monitor foreign currency risk attributable to our intercompany and third party outstanding foreign currency balances.
These practices involve the centralization of our exposure to underlying currencies that are not subject to central bank and/or country specific restrictions.
6 unchanged sentences
Raw materials are primarily purchased to meet our production requirements.
−Removed: Pricing and procurement risks are reduced through worldwide procurement and optimized processes to ensure immediate sourcing of additional raw material requirements.
Costs for raw materials and energy have fluctuated significantly in past years and may continue to fluctuate in the future.
1 unchanged sentence
Raw materials are purchased exclusively to cover our own requirements.
−Removed: A significant portion of our volume of approximately 70% is sold based on formula-driven price adjustment mechanisms for changes in costs of raw materials.
+Added: A significant portion of our volume, approximately 70%, is sold based on formula-driven price adjustment mechanisms for changes in costs of raw materials.
Sales prices under non-indexed contracts are reviewed on a quarterly basis to reflect raw material and market fluctuation.
2 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.