2 unchanged sentences
As a matter of policy, we do not engage in trading or speculative transactions.
−Removed: For further information on accounting related to derivative financial instruments, refer to Note H – “Derivative Financial Instruments” in our Condensed Consolidated Financial Statements.
+Added: For further information on accounting related to derivative financial instruments, refer to Note I – “Derivative Financial Instruments” in our Condensed Consolidated Financial Statements.
Foreign Exchange Risk
11 unchanged sentences
We assess foreign currency risk based on transactional cash flows, identify naturally offsetting positions and purchase hedging instruments to partially offset anticipated exposures.
−Removed: At June 30, 2022, we performed a sensitivity analysis on the impact that aggregate changes in the translation effect of foreign exchange rate changes would have on our operating income.
+Added: At September 30, 2022, we performed a sensitivity analysis on the impact that aggregate changes in the translation effect of foreign exchange rate changes would have on our operating income.
Based on this sensitivity analysis, we have determined that a change in the value of the U.S.
−Removed: dollar relative to other currencies by 10% to amounts already incorporated in the financial statements for the six months ended June 30, 2022 would have had approximately a $17 million impact on the translation effect of foreign exchange rate changes already included in our reported operating income for the period.
+Added: dollar relative to other currencies by 10% to amounts already incorporated in the financial statements for the nine months ended September 30, 2022 would have had approximately a $27 million impact on the translation effect of foreign exchange rate changes already included in our reported operating income for the period.
Interest Rate Risk
2 unchanged sentences
We manage our exposure to interest rate risk by establishing a mix of indebtedness bearing interest at both floating and fixed rates at inception and maintain a ratio of floating and fixed rates on this mix of indebtedness using interest rate derivatives when necessary.
−Removed: At June 30, 2022, 27.7% of our debt was floating rate debt and the weighted average interest rate of our total debt was 4.34%.
−Removed: At June 30, 2022, we performed a sensitivity analysis for our financial instruments that have interest rate risk.
+Added: At September 30, 2022, 27.6% of our debt was floating rate debt and the weighted average interest rate of our total debt was 4.68%.
+Added: At September 30, 2022, we performed a sensitivity analysis for our financial instruments that have interest rate risk.
We calculated the pretax earnings effect on our interest sensitive instruments.
−Removed: Based on this sensitivity analysis, we have determined that an increase of 10% in our average floating interest rates at June 30, 2022 would not have materially increased interest expense during the period.
+Added: Based on this sensitivity analysis, we have determined that an increase of 10% in our average floating interest rates at September 30, 2022 would not have materially increased interest expense during the period.
Commodities Risk
10 unchanged sentences
Principal materials and components used in our various manufacturing processes include steel, castings, engines, tires, hydraulics, cylinders, drive trains, electric controls and motors, semiconductors, and a variety of other commodities and fabricated or manufactured items.
−Removed: We have seen a rise in input costs across most materials and components which has adversely affected our financial performance.
+Added: Broad based inflation, partially offset by declines in the cost of certain raw materials, have led to an overall rise in input costs which has adversely affected our financial performance.
Additionally, tariffs on certain Chinese origin goods continue to put pressure on input costs, which we have been able to partially mitigate through the U.S.
−Removed: Government’s exclusion process and duty draw back mechanism.
+Added: Government’s exclusion process which is scheduled to end on December 31, 2022 and duty draw back mechanism.
If we are unable to recover a substantial portion of increased costs from our customers and suppliers or through duty draw back, our business or results of operations could be adversely affected.
4 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.