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 I – “Derivative Financial Instruments” in our Condensed Consolidated Financial Statements.
+Added: For further information on accounting related to derivative financial instruments, refer to Note H – “Derivative Financial Instruments” in our Condensed Consolidated Financial Statements.
Foreign Exchange Risk
3 unchanged sentences
Those assets, liabilities, expenses, revenues and earnings are translated into U.S.
−Removed: dollars at the applicable foreign exchange rates to prepare our consolidated financial statements.
+Added: dollars at the applicable foreign exchange rates to prepare our condensed consolidated financial statements.
Therefore, increases or decreases in foreign exchange rates between the U.S.
−Removed: dollar and those other currencies affect the value of those items as reflected in our consolidated financial statements, even if their value remains unchanged in their original currency.
+Added: dollar and those other currencies affect the value of those items as reflected in our condensed consolidated financial statements, even if their value remains unchanged in their original currency.
Due to continued volatility of foreign exchange rates to the U.S.
3 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 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.
+Added: At March 31, 2023, 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 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.
+Added: dollar relative to other currencies by 10% to amounts already incorporated in the financial statements for the three months ended March 31, 2023 would have had approximately a $13 million impact on the translation effect of foreign exchange rate changes already included in our reported operating income for the period ended March 31, 2023.
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 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%.
−Removed: At September 30, 2022, we performed a sensitivity analysis for our financial instruments that have interest rate risk.
+Added: At March 31, 2023, approximately 23% of our debt was floating rate debt and the weighted average interest rate of our total debt was 5.02%.
+Added: At March 31, 2023, 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 September 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 March 31, 2023 would not have materially increased interest expense during the period.
Commodities Risk
5 unchanged sentences
Current and potential suppliers are evaluated regularly on their ability to meet our requirements and standards.
−Removed: We actively manage our material supply sourcing, and employ various methods to limit risk associated with commodity cost fluctuations and availability.
−Removed: Our manufacturing operations continue to be adversely affected by material shortages and production delays as the continuity of supply was impacted by capacity constraints, global logistics disruptions, raw material shortages and COVID-19 related production downtime at certain component suppliers.
+Added: We actively manage our material sourcing, and employ various methods to limit risk associated with commodity cost fluctuations and availability.
+Added: Our manufacturing operations continue to be adversely affected by material shortages and production delays as the continuity of supply was impacted by supplier capacity constraints, notably electronic components, and global logistics disruptions.
We have designed and implemented plans to mitigate the impact of these risks by using alternate suppliers, expanding our supply base globally, leveraging our overall purchasing volumes to obtain favorable pricing and quantities, developing a closer working relationship with key suppliers and purchasing hedging instruments to partially offset anticipated exposures.
3 unchanged sentences
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 which is scheduled to end on December 31, 2022 and duty draw back mechanism.
+Added: Government’s exclusion process, which has been extended through September 30, 2023, duty draw back and we continue to explore other mechanisms.
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.
1 unchanged sentence
For more information on commodities risk, see Part I, Item 1A.
−Removed: – “Risk Factors” in our Annual Report on Form 10-K and Part II, Item 1A.
−Removed: – “Risk Factors” below.
+Added: – “Risk Factors” in our Annual Report on Form 10-K.
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.