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
9 unchanged sentences
Such fluctuations in foreign exchange rates relative to the U.S.
−Removed: dollar may cause our actual results to differ materially from those anticipated in our guidance and have a material adverse effect on our business or results of operations.
+Added: dollar may cause our actual results to differ materially from those anticipated and have a material adverse effect on our business or results of operations.
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, 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.
+Added: At March 31, 2024, 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, 2023 would have had approximately a $41 million impact on the translation effect of foreign exchange rate changes already included in our reported operating income for the period ended September 30, 2023.
+Added: dollar relative to other currencies by 10% to amounts already incorporated in the financial statements for the three months ended March 31, 2024 would have had approximately a $10 million impact on the translation effect of foreign exchange rate changes already included in our reported operating income for the period ended March 31, 2024.
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, 2023, approximately 15% of our debt was floating rate debt and the weighted average interest rate of our total debt was 4.73%.
−Removed: At September 30, 2023, we performed a sensitivity analysis for our financial instruments that have interest rate risk.
+Added: At March 31, 2024, approximately 14% of our debt was floating rate debt and the weighted average interest rate of our total debt was 4.50%.
+Added: At March 31, 2024, 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, 2023 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, 2024 would not have materially increased interest expense during the period.
Commodities Risk
6 unchanged sentences
We actively manage our material 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 supplier capacity constraints, notably electronic components.
+Added: While the overall continuity of material supply into our manufacturing operations has improved from the prior year, we continue to experience intermittent disruptions with certain material types, most notably electronic components.
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.
−Removed: However, we anticipate that we will continue to be adversely affected by material shortages and production delays through the remainder of 2023, though the extent of these disruptions is easing.
+Added: However, we anticipate that we will continue to be affected by intermittent material shortages and production delays through the remainder of 2024, though the extent of these disruptions has eased.
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: In the third quarter, inflationary pressure on certain purchased components have continued while the cost of steel has modestly declined.
+Added: Inflationary pressure on certain purchased components have continued while the cost of U.S.
+Added: steel has declined in the first quarter.
Additionally, import of certain purchased components and parts may be impacted by the implications of sanctions preventing the use of iron and steel from Russia in such components and parts.
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 has been extended through December 31, 2023, duty draw back and we continue to explore other mechanisms.
+Added: Government’s exclusion process, extended through May 31, 2024, and duty draw back.
+Added: We also continue to explore other mechanisms to mitigate impacts of tariffs.
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.
3 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.