QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We utilize interest rate swaps in order to hedge a portion of our exposure to interest rate fluctuations.
+Added: INTEREST RATE RISK —We utilize interest rate swaps in order to hedge a portion of our exposure to interest rate fluctuations.
We do not intend to enter into derivative or interest rate transactions for speculative purposes.
7 unchanged sentences
The market risk associated with interest-rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.
−Removed: As of December 31, 2020, we had six interest rate swaps that fixed LIBOR on $1.0 billion of our unsecured term loan facilities.
+Added: PHILLIPS EDISON & COMPANY
+Added: DECEMBER 31, 2021 FORM 10-K
+Added: As of December 31, 2021, we had five interest rate swaps that fixed LIBOR on $930 million of our unsecured term loan facilities.
As of December 31, 2021, we had not fixed the interest rate on $25 million of our unsecured debt through derivative financial instruments, and as a result, we are subject to the potential impact of rising interest rates, which could negatively impact our profitability and cash flows.
5 unchanged sentences
As a result, the ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during the period, the hedging strategies at the time, and the related interest rates.
−Removed: We do not have any foreign operations, and thus, we are not exposed to foreign currency fluctuations.
−Removed: In July 2017, the Financial Conduct Authority (the regulatory authority over LIBOR) stated that it would phase out LIBOR as a benchmark.
−Removed: In November 2020, the Federal Reserve Board announced that banks must stop writing new U.S.
−Removed: dollar (“USD”) LIBOR contracts by the end of 2021 and that, no later than June 30, 2023, when USD LIBOR will no longer be published, market participants should amend legacy contracts to use the Secured Overnight Financing Rate or another alternative reference rate.
+Added: LIBOR Transition —In July 2017, the Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that it intended to phase out LIBOR as a benchmark by the end of 2021.
+Added: In November 2020, ICE Benchmark Administration, the administrator of LIBOR, with the support of the Federal Reserve Board and the FCA, announced a plan to consult on ceasing publication of U.S.
+Added: dollar LIBOR on December 31, 2021 for only the one week and two month U.S.
+Added: dollar LIBOR, and on June 30, 2023 for all other U.S.
+Added: dollar LIBOR, which the FCA subsequently confirmed in March 2021.
+Added: The Federal Reserve Board concurrently issued a statement advising banks to stop new U.S.
+Added: dollar LIBOR issuances by the end of 2021.
+Added: Further, when USD LIBOR will no longer be published, market participants should amend legacy contracts to use the Secured Overnight Financing Rate or another alternative reference rate.
We have contracts that are indexed to LIBOR and are monitoring and evaluating the related risks, which include interest amounts on our variable rate debt as discussed in Note 8 and the swap rate for our interest rate swaps, as discussed in Note 9.
See “Part I, Item 1A.
−Removed: Risk Factors” of this filing on Form 10-K for further discussion on risks related to changes in LIBOR reporting practices, the method in which LIBOR is determined, or the use of alternative reference rates.
+Added: Risk Factors” of this filing on Form 10-K for further discussion on risks related to changes in LIBOR reporting practices.
+Added: FOREIGN CURRENCY EXCHANGE RISK —We do not have any foreign operations, and thus, we are not exposed to foreign currency fluctuations.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
1 unchanged sentence
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
+Added: Not applicable.
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.