16 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, 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.
+Added: At March 31, 2025, 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 strengthening or weakening 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, 2024 would have had approximately a $24 million impact on the translation effect of foreign exchange rate changes already included in our reported operating income for the period ended September 30, 2024.
+Added: dollar relative to other currencies by 10% to amounts already incorporated in the financial statements for the three months ended March 31, 2025 would have had approximately a $4 million impact on the translation effect of foreign exchange rate changes already included in our reported operating income for the period ended March 31, 2025.
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, 2024, less than 1% of our debt was floating rate debt and the weighted average interest rate of our total debt was 4.06%.
−Removed: At September 30, 2024, we performed a sensitivity analysis for our financial instruments that have interest rate risk.
+Added: At March 31, 2025, 48% of our debt was floating rate debt and the weighted average interest rate of our total debt was 5.59%.
+Added: At March 31, 2025, 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, 2024 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, 2025 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: The overall continuity of material supply into our manufacturing operations has improved from the prior year.
−Removed: We have designed and implemented plans to mitigate the impact of 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.
+Added: The overall continuity of material supply into our manufacturing operations has been stable in the first quarter of 2025.
+Added: 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
+Added: quantities, developing a closer working relationship with key suppliers and purchasing hedging instruments to partially offset anticipated exposures.
Principal materials and components used in our various manufacturing processes include steel, castings, engines, tires, hydraulics, cylinders, drive trains, cab chassis, electric controls and motors, semiconductors, and a variety of other commodities and fabricated or manufactured items.
Inflationary pressure on certain purchased components have continued while the cost of U.S.
−Removed: steel has declined throughout 2024.
+Added: steel has increased throughout the first quarter of 2025 driven by restocking demand and the announced reset of Section 232 tariffs on steel.
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.
−Removed: 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, extended through May 31, 2025, and duty draw back.
−Removed: We also continue to explore other mechanisms to mitigate impacts of tariffs.
−Removed: 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.
+Added: government has imposed tariffs on certain foreign goods from a variety of countries and regions that it perceives as engaging in unfair trade practices.
+Added: Tariffs on certain foreign origin goods continue to put pressure on input costs.
+Added: We have been able to mitigate some effects of tariffs through the U.S.
+Added: government’s duty draw-back mechanism, tariff exclusion process, footprint utilization, and prudent sourcing.
+Added: If we become unable to recover a substantial portion of any increased tariff related costs from our customers, suppliers, duty draw-back, or other available avenues, the imposition of the new or increased international tariffs could materially and adversely affect our business, financial condition and results of operations.
We will continue to monitor international trade policy and will make adjustments to our supply base where possible to mitigate the impact on our costs.
For more information on commodities risk, see Part I, Item 1A.
−Removed: – “Risk Factors” in our Annual Report on Form 10-K.
+Added: – “Risk Factors” in our Annual Report on Form 10-K and Part II Item 1A – “Risk Factors” of this Quarterly Report.
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.