2 unchanged sentences
We use forward foreign exchange contracts as economic hedges to manage the cash flow volatility arising from foreign exchange rate fluctuations.
−Removed: We use net investment hedges to manage the volatility of foreign exchange rates on the investment in our foreign subsidiaries.
+Added: We use net investment hedges to manage the volatility of foreign exchange rates
+Added: on the investment in our foreign subsidiaries.
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 U.K., Euro Zone, Australia, Brazil, Canada, China and Japan.
−Removed: Our agencies transact business in more than 50 different currencies.
As an integral part of our global treasury operations, we centralize our cash and use notional multicurrency pools to manage the foreign currency exchange risk that arises from imbalances between subsidiaries and their respective treasury centers.
1 unchanged sentence
In these instances, amounts are either promptly settled or hedged with forward foreign exchange contracts.
−Removed: To manage this risk, at December 31, 2024, we had outstanding forward foreign exchange contracts with an aggregate notional amount of $4.7 million.
−Removed: The net fair value of the forward foreign contracts at December 31, 2024 was not material (see Note 22 to the consolidated financial statements).
−Removed: At December 31, 2023, there were no forward foreign exchange contracts outstanding.
−Removed: Foreign currency derivatives are designated as economic hedges;
−Removed: therefore, any gain or loss in fair value incurred on those instruments is generally offset by decreases or increases in the fair value of the underlying exposure.
+Added: To manage this risk, at December 31, 2025 and December 31, 2024, we had outstanding forward foreign exchange contracts with an aggregate notional amount of $27.4 million and $4.7 million, respectively.
+Added: Foreign currency derivatives are designated as fair value hedges;
+Added: therefore, any gain or loss in fair value incurred on those instruments is recorded in results of operations and is generally offset by decreases or increases in the fair value of the underlying exposure.
By using these financial instruments, we reduce financial risk of adverse foreign exchange changes by foregoing any gain which might occur if the markets move favorably.
The terms of our forward foreign exchange contracts are generally less than 90 days.
−Removed: 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.
+Added: We have fixed-to-fixed Yen/U.S.
+Added: Dollar exchange rate and Sterling/Euro exchange rate cross currency swaps with a notional value of $181 million and £325.0 million, respectively.
+Added: Dollar swaps hedge a portion of the net investment in our Japanese subsidiaries against volatility in the Yen/U.S.
Dollar exchange rate.
+Added: The Sterling/Euro swaps hedge the exchange rate volatility on a portion of the Sterling Entity's net investment in Euro Functional currency subsidiaries.
The swaps are designated and qualify as a hedge of a net investment in a foreign subsidiary and are scheduled to mature in 2028, 2029, 2032 and 2033.
−Removed: 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.
+Added: Changes in the fair value of the swaps are recognized in foreign currency translation and are reported in AOCI.
Any gain or loss will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying operations.
We have elected to assess the effectiveness of our net investment hedges based on changes in spot exchange rates.
−Removed: We receive net fixed U.S.
−Removed: Dollar interest payments.
−Removed: We recorded a reduction of interest expense of $6.6 million in each of 2024 and 2023.
−Removed: At December 31, 2024, an asset of $9.3 million is recorded in other assets, and at December 31, 2023, a liability of $6.6 million is recorded in long-term liabilities, for the swap fair value.
+Added: We recorded a reduction of interest expense of $10.3 million in 2025 and $6.6 million in 2024.
+Added: At December 31, 2025, an asset of $7.1 million is recorded in other assets, and at December 31, 2024, an asset of $9.3 million is recorded in other assets, for the swap fair value.
Interest Rate Risk
7 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
−Removed: 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 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.
5 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.