Quantitative and Qualitative Disclosures About Market Risk
−Removed: We manage our exposure to foreign exchange and interest rate risk through various strategies, including the use of derivative financial instruments.
+Added: We manage our exposure to foreign exchange rate risk and interest rate risk through various strategies, including the use of derivative financial instruments.
We use forward foreign exchange contracts as economic hedges to manage the cash flow volatility arising from foreign exchange rate fluctuations.
−Removed: We may use interest rate swaps to manage our interest expense and structure our long-term debt portfolio to achieve a mix of fixed rate and floating rate debt.
We do not use derivatives for trading or speculative purposes.
25 unchanged sentences
We may use interest rate swaps to manage our interest cost and structure our long-term debt portfolio to achieve a mix of fixed rate and floating rate debt.
−Removed: At December 31, 2020, our long-term debt consists entirely of fixed-rate debt.
+Added: During 2021, there were no interest rate swaps and, at December 31, 2021, long-term debt consisted entirely of fixed-rate debt.
We provide advertising, marketing and corporate communications services to several thousand clients that operate in nearly every sector of the global economy and we grant credit to qualified clients in the normal course of business.
3 unchanged sentences
These commitments are included in accounts payable when the services are delivered by the media providers or production companies.
−Removed: If permitted by local law and the client agreement, many of our agencies purchase media and production services for our clients as an agent for a disclosed principal.
+Added: If permitted by local law and the client agreement, many of our agencies purchase media and production services for our clients as an agent for a
+Added: disclosed principal.
In addition, while operating practices vary by country, media type and media vendor, in the United States and certain foreign markets, many of our agencies’ contracts with media and production providers specify that our agencies are not liable to the media and production providers under the theory of sequential liability until and to the extent we have been paid by our client for the media or production services.
Where purchases of media and production services are made by our agencies as a principal or are not subject to the theory of sequential liability, the risk of a material loss as a result of payment default by our clients could increase significantly and such a loss could have a material adverse effect on our business, results of operations and financial position.
−Removed: In addition, our methods of managing the risk of payment default, including obtaining credit insurance, requiring payment in advance, mitigating the potential loss in the marketplace or negotiating with media providers, may be less available or unavailable during a severe economic downturn.
+Added: In addition, our methods of managing the risk of payment default, including obtaining credit insurance, requiring payment in advance, mitigating the potential loss in the marketplace or negotiating with media providers, may be insufficient, less available, or unavailable during a severe economic downturn.
Financial Statements and Supplementary Data
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.