1 unchanged sentence
We manage our exposure to foreign exchange rate risk and interest rate risk through various strategies, including the use of derivative financial instruments.
−Removed: We use forward foreign exchange contracts as economic hedges to manage the cash flow volatility arising from foreign exchange rate fluctuations.
We use net investment hedges to manage the volatility of foreign exchange rates on the investment in our foreign subsidiaries.
+Added: We may use forward foreign exchange contracts as economic hedges to manage the cash flow volatility arising from foreign exchange rate fluctuations.
We do not use derivatives for trading or speculative purposes.
12 unchanged sentences
The effects of foreign currency exchange transactions on our results of operations are discussed in Note 2 to the consolidated financial statements.
−Removed: We operate in all major international markets including the Euro Zone, the U.K., Australia, Brazil, Canada, China and Japan.
+Added: We operate in all major international markets including the U.K., Euro Zone, Australia, Brazil, Canada, China and Japan.
Our agencies transact business in more than 50 different currencies.
2 unchanged sentences
In these instances, amounts are either promptly settled or hedged with forward foreign exchange contracts.
−Removed: To manage this risk, at December 31, 2022 and 2021, we had outstanding forward foreign exchange contracts with an aggregate notional amount of $40.3 million and $77.3 million, respectively.
−Removed: At December 31, 2022 and 2021, the net fair value of the forward foreign contracts was not material (see Note 20 to the consolidated financial statements).
+Added: To manage this risk, at December 31, 2022, we had outstanding forward foreign exchange contracts with an aggregate notional amount of $40.3 million.
+Added: The net fair value of the forward foreign contracts at December 31, 2022, was not material (see Note 22 to the consolidated financial statements).
+Added: There were no outstanding forward foreign exchange contracts at December 31, 2023.
Foreign currency derivatives are designated as economic hedges;
2 unchanged sentences
The terms of our forward foreign exchange contracts are generally less than 90 days.
−Removed: In 2022, we entered into fixed-to-fixed cross currency swaps with a notional value of $150 million to hedge a portion of the net investment in our Japanese subsidiaries against volatility in the Yen/U.S.
+Added: We have fixed-to-fixed cross currency swaps with a notional value of $150 million that hedge a portion of the net investment in our Japanese subsidiaries against volatility in the Yen/U.S.
Dollar exchange rate.
−Removed: These swaps are designated and qualify as a hedge of a net investment in a foreign subsidiary and are scheduled to mature in 2025 and 2029.
+Added: The swaps are designated and qualify as a hedge of a net investment in a foreign subsidiary and are scheduled to mature in 2025 and 2029.
Changes in the fair value of the swaps are recognized in foreign currency translation and are reported in accumulated other comprehensive income (loss), or AOCI.
2 unchanged sentences
We receive net fixed U.S.
−Removed: Dollar interest payments, and in 2022, we recorded $1.2 million as a reduction of interest expense.
−Removed: At December 31, 2022, the liability for the swap fair value was $16.5 million and is recorded in long-term liabilities.
+Added: Dollar interest payments.
+Added: In 2023 and 2022, we recorded a reduction of interest expense of $6.6 million and $1.2 million, respectively.
+Added: At December 31, 2023 and 2022, the liability for the swap fair value was $6.6 million and $16.5 million, respectively, and was recorded in long-term liabilities.
Interest Rate Risk
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: During 2022, there were no interest rate swaps, and long-term debt at December 31, 2022 consisted entirely of fixed rate debt.
+Added: There were no interest rate swaps in 2023 and 2022.
+Added: Long-term debt at December 31, 2023 and 2022 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.
2 unchanged sentences
In the normal course of business, our agencies enter into contractual commitments with media providers and production companies on behalf of our clients at levels that can substantially exceed the revenue from our services.
−Removed: These commitments are included in accounts payable when the services are delivered by the media providers or production companies.
+Added: These commitments are
+Added: included in accounts payable when the services are delivered by the media providers or production companies.
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.
1 unchanged sentence
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 insufficient, less available, or unavailable during a severe economic downturn.
+Added: While we use various methods to manage 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, these 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.