QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Foreign Currency Exposures
−Removed: We manage a portion of our exposure in foreign currency transactions through the use of foreign exchange forward contracts.
−Removed: Refer to Note 1(f), "Derivative Financial Instruments," to the accompanying Consolidated Financial Statements for a summary of our foreign exchange forward contracts as of December 31, 2020.
−Removed: As a result of our global operations, our earnings are exposed to changes in foreign currency exchange rates.
−Removed: Many of our foreign businesses operate in functional currencies other than the U.S.
−Removed: dollar strengthens relative to the Euro or other foreign currencies where we have operations, there will be a negative impact on our operating results upon translation of those foreign operating results into the U.S.
−Removed: Foreign currency exchange rate changes positively impacted our adjusted EBITDA per credit facility, which is a non-GAAP financial measure, by approximately 0.2% in the year ended December 31, 2020.
−Removed: We do not hedge the translation of foreign currency operating results into the U.S.
+Added: Interest Rate Risk
+Added: Our primary exposure to interest rate risk is due to our variable-rate debt agreements, including our 2019 Credit Agreement.
+Added: These variable-rate debt agreements use LIBOR, which is subject to fluctuation and uncertainty.
+Added: As of December 31, 2021, the value of our variable-rate debt was $678.0 million.
+Added: Based on our balance sheet position as of December 31, 2021, the annualized effect of a 10% percentage point increase in floating interest rates on our variable-rate debt obligations would not have a significant impact on income before income taxes.
+Added: Further, in 2017, the FCA announced that it intends to phase out the LIBOR by the end of 2021 and we currently expect certain LIBOR maturities to continue to be available through mid-2023.
+Added: In March 2021, the FCA confirmed that all of the LIBOR settings for Euro and Swiss Franc and some of the LIBOR settings for Japanese Yen, Sterling and U.S.
+Added: dollars would cease in December 2021 and the remainder of the LIBOR settings for U.S.
+Added: dollars would cease in June 2023.
+Added: As a result, we may amend our debt agreements that use LIBOR as a benchmark, but do not expect these changes will have a material impact on our financial statements, liquidity and access to capital markets.
+Added: For further information regarding the potential impacts of the LIBOR phase-out on the Company, please refer to "Risk Factors" in ITEM 1A of Part I of this Report.
+Added: Foreign Currency Exchange Risk
We hedge a portion of our currency exchange exposure relating to foreign currency transactions with foreign exchange forward contracts.
2 unchanged sentences
Such losses would be largely offset by gains from the revaluation or settlement of the underlying assets and liabilities that are being protected by the foreign exchange forward contracts.
−Removed: Effective June 30, 2018, we determined that the economy in Argentina is highly inflationary.
−Removed: Beginning July 1, 2018, the U.S.
−Removed: Dollar is the functional currency for our subsidiaries in Argentina.
−Removed: Remeasurement adjustments in a highly inflationary economy and other transactional gains and losses are reflected in net earnings and were not material for the year ended December 31, 2020.
−Removed: These subsidiaries are included in loss from discontinued operations, net of tax, on our Consolidated Statements of Income and are not material as of December 31, 2020.
−Removed: Table of Co ntents
−Removed: Interest Rate Risk
−Removed: On December 31, 2020, we had variable-rate debt of $448.9 million.
−Removed: A sensitivity analysis using a one hundred basis point increase in interest rates on our variable-rate debt as of December 31, 2020, and holding other variables consistent, would cause an estimated reduction in income before income taxes of $4.5 million.
−Removed: We continue to evaluate the interest rate environment and look for opportunities to improve our debt structure and minimize our interest rate risk and expense.
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.