8 unchanged sentences
Interest Rate Risk
−Removed: As of December 31, 2019, our exposure to interest rates relates primarily to our interest rate swaps, our senior secured debt and our borrowings on our Revolver.
+Added: As of December 31, 2020, our exposure to interest rates relates primarily to our interest rate swaps, our senior secured credit facilities and our borrowings on our Revolver.
Offsetting some of this exposure is interest income received from our money market funds.
2 unchanged sentences
This amount was determined by applying the hypothetical interest rate change to our average money market funds invested.
−Removed: In the fourth quarter of 2014, we entered into interest rate swaps that effectively converted $750 million of floating interest rate senior secured debt into a fixed rate obligation for 2016, 2017 and 2018.
−Removed: As a result of the 2017 Term Facility Amendment in the first quarter of 2017, we discontinued hedge accounting for our existing swap agreements as of February 22, 2017 and entered into offsetting interest rate swaps that are not designated as hedging instruments.
−Removed: Additionally, in connection with the 2017 Term Facility Amendment, we entered into new forward starting interest rate swaps effective March 31, 2017 through December 31, 2019 to hedge the interest payments associated with $750 million of the floating-rate Term Loan B.
−Removed: In September 2017, we entered into new forward starting interest rate swaps to hedge the interest payments associated with $750 million of the floating-rate Term Loan B for the full year 2020.
−Removed: In April 2018, we entered into new forward starting interest rate swaps to hedge the interest payments associated with $600 million, $300 million and $450 million of the floating-rate Term Loan B related to full year 2019, 2020 and 2021, respectively.
−Removed: In December 2018, we entered into new forward starting interest rate swaps to hedge the interest payments associated with $150 million of the floating-rate Term Loan B for the full years 2020 and 2021.
+Added: In connection with the 2017 Term Facility Amendment, we entered into forward starting interest rate swaps effective March 31, 2017 to hedge the interest payments associated with $750 million of the floating-rate 2017 Term Loan B.
+Added: The total notional amount outstanding of $750 million became effective December 31, 2018 and extended through the full year 2019.
+Added: In September 2017, we entered into forward starting interest rate swaps to hedge the interest payments associated with $750 million of the floating-rate Term Loan B.
+Added: The total notional outstanding of $750 million became effective December 31, 2019 and extends through the full year 2020.
+Added: In April 2018, we entered into forward starting interest rate swaps to hedge the interest payments associated with $600 million, $300 million and $450 million of the floating-rate Term Loan B related to years 2019, 2020 and 2021, respectively.
+Added: In December 2018, we entered into forward starting interest rate swaps to hedge the interest payments associated with $150 million of the floating-rate Term Loan B for the years 2020 and 2021.
+Added: We have designated these swaps as cash flow hedges.
Interest rate swaps outstanding at December 31, 2020 and matured during the years ended December 31, 2020, 2019 and 2018 are as follows:
3 unchanged sentences
$750 million 1 month LIBOR (1)
−Removed: 1.15% March 31, 2017 December 31, 2017
−Removed: $750 million 1 month LIBOR (2)
1.65% December 29, 2017 December 31, 2018
5 unchanged sentences
2.81% December 31, 2020 December 31, 2021
−Removed: Not Designated as Hedging Instrument (1)
−Removed: $750 million 1 month LIBOR (3)
−Removed: 2.19% December 30, 2016 December 29, 2017
−Removed: $750 million 1.18% 1 month LIBOR March 31, 2017 December 31, 2017
−Removed: $750 million 1 month LIBOR (3)
−Removed: 2.61% December 29, 2017 December 31, 2018
−Removed: $750 million 1.67% 1 month LIBOR December 29, 2017 December 31, 2018
(1) Subject to a 1% floor.
−Removed: (2) Subject to a 0% floor.
−Removed: (3) As of February 22, 2017.
Since outstanding balances under our senior secured credit facilities incur interest at rates based on LIBOR, subject to a 0% floor, increases in short-term interest rates would impact our interest expense.
If our mix of interest rate-sensitive assets and liabilities changes significantly, we may enter into additional derivative transactions to manage our net interest rate exposure.
−Removed: The fair value of these interest rate swaps was a liability of $15 million and an asset of $4 million at December 31, 2019 and 2018, respectively.
+Added: The fair value of these interest rate swaps was a liability of $16 million and $15 million at December 31, 2020 and 2019, respectively.
Foreign Currency Risk
3 unchanged sentences
During the year ended December 31, 2019, foreign currency operations included $246 million of revenue and $572 million of operating expenses, representing approximately 6% and 16% of our total revenue and operating expenses, respectively.
−Removed: The principal foreign currencies involved include the Euro, the Indian Rupee, the British Pound Sterling, the Australian Dollar, the Polish Zloty, and the Russia Ruble.
−Removed: Our most significant foreign currency denominated operating expenses is in the Euro, which comprised approximately 7% of our operating expenses for each of the years ended December 31, 2019 and 2018, respectively.
+Added: The principal foreign currencies involved include the Euro, the Indian Rupee, the British Pound Sterling, the Australian Dollar, the Polish Zloty, and the Singapore Dollar.
+Added: Our most significant foreign currency denominated operating expenses is in the Euro, which comprised approximately 4% and 7% of our operating expenses for the years ended December 31, 2020 and 2019, respectively.
In recent years, exchange rates between foreign currencies and the U.S.
2 unchanged sentences
To reduce the impact of this earnings volatility, we hedge a portion of our foreign currency exposure in our operating expenses by entering into foreign currency forward contracts on several of our largest exposures, including the Indian Rupee, the British Pound Sterling, the Australian Dollar, the Polish Zloty, the Singaporean Dollar, and the Swedish Krona.
−Removed: Additionally, approximately 42% of our exposure in foreign currency operating expenses is naturally hedged by foreign currency cash receipts associated with foreign currency revenue.
−Removed: The notional amounts of our forward contracts totaled $217 million at December 31, 2019.
−Removed: The forward contracts represent obligations to purchase foreign currencies at a predetermined exchange rate to fund a portion of our expenses that are denominated in foreign currencies.
−Removed: The fair value of these forward contracts is $2 million in prepaid expenses and other current assets and $4 million in other accrued liabilities included in as of December 31, 2019 and December 31, 2018, respectively, in our consolidated balance sheets.
+Added: Additionally,
+Added: approximately 26% of our exposure in foreign currency operating expenses is naturally hedged by foreign currency cash receipts associated with foreign currency revenue.
+Added: Our forward contracts represent obligations to purchase foreign currencies at a predetermined exchange rate to fund a portion of our expenses that are denominated in foreign currencies.
+Added: Due to the uncertainty driven by the COVID-19 pandemic on our foreign currency exposures, we have paused entering into new cash flow hedges of forecasted foreign currency cash flows until we have more clarity regarding the recovery trajectory and its impacts on net exposures.
+Added: As a result, as of December 31, 2020, we have no unsettled forward contracts and have not entered into any foreign currency forward contracts for 2021.
We are also exposed to foreign currency fluctuations through the translation of the financial condition and results of operations of our foreign operations into U.S.
1 unchanged sentence
These gains and losses are recognized as a component of accumulated other comprehensive income (loss) and is included in stockholders’ equity.
−Removed: Net translation losses recognized in other comprehensive income were $2 million and $4 million for the years ended December 31, 2019 and 2018, respectively, and net translation gains recognized in other comprehensive income totaled $13 million for the year ended December 31, 2017.
+Added: We recognized net translation gains in other comprehensive income (loss) of $8 million for the year ended December 31, 2020 and net translation losses of $2 million and $4 million for the years ended December 31, 2019 and 2018, respectively.
Our customers are primarily located in the United States, Canada, Europe, Latin America and Asia, and are concentrated in the travel industry.
6 unchanged sentences
We regularly monitor the financial condition of the air transportation industry.
−Removed: We believe the credit risk related to the air carriers’ difficulties is significantly mitigated by the fact that we collect a significant portion of the receivables from these carriers through the Airline Clearing House and other similar clearing houses (“ACH”).
+Added: We believe the credit risk related to the air carriers’ difficulties is significantly mitigated by the fact that we collect a significant portion of the receivables from these carriers through the Airline Clearing House (“ACH”).
As of December 31, 2020, 2019 and 2018, approximately 52%, 59%, and 61%, respectively, of our air customers make payments through the ACH which accounts for approximately 63%, 89% and 94%, respectively, of our air billings.
6 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.