3 unchanged sentences
When appropriate, we use derivative financial instruments to mitigate the risk from such exposures.
−Removed: A discussion of our accounting policies for derivative financial instruments is included in Note 14 - Derivatives of Notes to the Consolidated Financial Statements included elsewhere in this Annual Report.
+Added: A discussion of our accounting policies for derivative financial instruments is included in Note 14 - Derivatives in the Notes to the Consolidated Financial Statements included elsewhere in this Annual Report.
Interest Rate Risk
−Removed: Our Revolver Facility and Term Loan Facility have variable interest rates.
+Added: Borrowings on our Revolver Facility are subject variable interest rates.
If market interest rates increase, the interest rate on our variable rate debt will increase and will create higher debt service requirements, which would adversely affect our cash flow and could adversely impact our results of operations.
−Removed: The general levels of U.S., European Union interest rates and LIBOR affect interest expense.
−Removed: As of September 30, 2022, we had $1,134.0 million subject to variable interest rates, or 35.5% of total debt.
−Removed: Assuming an increase to market rates of 1% as of September 30, 2022, we would incur an increase to interest expense of $11.5 million.
−Removed: Our Term Loan Facility and Revolver Facility allows for the LIBOR rate to be phased out and replaced with the Secured Overnight Financing Rate and therefore we do not anticipate a material impact by the expected upcoming LIBOR transition.
+Added: The general levels of SOFR, EURIBOR, CORRA and/or SONIA rates affect interest expense.
+Added: As of September 30, 2023, and following the completion of the HHI divestiture, repayment of the Term Loan borrowings and borrowings under the Revolver Facility, there are no substantive outstanding debt obligations subject to variable rate fluctuations.
Foreign Exchange Risk
6 unchanged sentences
The 4.00% Notes are held as a net investment hedge of the translation of the Company’s net investments in Euro-denominated subsidiaries.
−Removed: See Note 14 - Derivatives in Notes to the Consolidated Financial Statements, included elsewhere in this Annual Report, for further discussion.
+Added: See Note 14 - Derivatives in the Notes to the Consolidated Financial Statements, included elsewhere in this Annual Report, for further discussion.
At September 30, 2023, the potential change in fair value of outstanding foreign exchange derivative instruments, assuming a 10% unfavorable change in the underlying exchange rates, would be a loss of $101.4 million.
The net impact on reported earnings, after also including the effect of the change in the underlying foreign currency-denominated exposures, would be a net gain of $17.1 million.
−Removed: Table of Conten t s
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.