8 unchanged sentences
Due to the nature of our cash equivalents that they are readily convertible to cash, we do not anticipate any material effect on our portfolio due to fluctuations in interest rates.
−Removed: We are exposed to market risk due to the possibility of changing interest rates under our credit facilities, including the 2022 Credit Facility, 2022 Term Loan Credit Agreement, and the Bridge Facility.
−Removed: We also have four unsecured, uncommitted, revolving credit facilities that are callable by the bank at any time.
−Removed: We may borrow funds under the 2022 Credit Facility and uncommitted facilities in U.S.
−Removed: Dollars, Euros, or in certain other agreed currencies as described in Note 7 “Debt” of this report.
−Removed: At the end of 2022, we had two $75.0 million, one €100.0 million, and one £55.0 million revolving credit facilities, which are uncommitted.
−Removed: At the end of 2022, $225.0 million was outstanding under the 2022 Credit Facility.
−Removed: We expect to issue fixed-rate debt in the first half of 2023 as part of the pending acquisition of Transporeon and to refinance existing debt.
−Removed: To minimize interest rate fluctuations, in December 2022, we entered into a contract to offset the changes in the price of U.S.
−Removed: Treasury Notes with an original maturity of 10 years for the period commencing on the contract date and ending May 31, 2023 (“Treasury Rate Lock”).
−Removed: The Treasury Rate Lock is marked-to-market each period through other comprehensive income until the debt is issued, and the effective interest rate method is applied.
−Removed: The nominal amount is $400 million, and the fair value at the end of 2022 is $7.2 million.
−Removed: While not predictive, a hypothetical 50 basis point increase or decrease in the 10-year U.S.
−Removed: Treasury rate as of December 30, 2022 would change the fair value of the Treasury Rate Lock by $16.5 million.
+Added: In the second quarter of 2023, we borrowed $1.2 billion of variable-rate debt in conjunction with the Transporeon acquisition.
+Added: At the end of 2023, our outstanding balance of variable-rate debt was $1.3 billion, see details in Note 8 “Debt” of this report.
+Added: We are exposed to market risk due to the possibility of changing interest rates.
+Added: While not predictive, a hypothetical 50 basis point increase in interest rates on our variable-rate debt would result in an increase of approximately $6.5 million in annual interest expense.
Foreign Currency Exchange Rate Risk
1 unchanged sentence
Dollar and various foreign currencies, the most significant of which is the Euro.
−Removed: In addition, volatile market conditions arising from the COVID-19 pandemic could result in changes in exchange rates.
Historically, the majority of our revenue contracts are denominated in U.S.
3 unchanged sentences
As exchange rates vary, operating income may differ from expectations.
−Removed: In 2022, revenue and operating income were unfavorably impacted by foreign currency exchange rates by $114.1 million and $26.0 million.
−Removed: We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on cash, debt, and certain trade and intercompany receivables and payables, primarily denominated in Euro, New Zealand Dollars, Brazilian Real, and Canadian Dollars.
+Added: In 2023, changes in foreign currency exchange rates had a favorable impact of $0.9 million on revenue and an unfavorable impact of $5.8 million on operating income.
+Added: We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on cash, debt, and certain trade and intercompany receivables and payables, primarily denominated in Euro, Canadian Dollars, New Zealand Dollars, British Pound, and Brazilian Real.
These contracts reduce the exposure to fluctuations in foreign currency exchange rate movements, as the gains and losses associated with foreign currency balances are generally offset with the gains and losses on the forward contracts.
−Removed: Additionally, in December 2022, we entered into a foreign currency exchange rate contract to minimize foreign currency fluctuations on the €1.88 billion or $2.0 billion pending acquisition of Transporeon.
+Added: We occasionally enter into foreign currency exchange contracts to hedge the purchase price of some of our larger business acquisitions.
Our foreign currency contracts are marked-to-market through earnings every period and generally range in maturity from one to two months, or from four to six months for acquisitions.
1 unchanged sentence
Foreign currency contracts outstanding at the end of 2023 and 2022 are summarized as follows:
−Removed: At the End of 2022 At the End of 2021
+Added: At the End of 2023
+Added: At the End of 2022
Value Nominal
4 unchanged sentences
Foreign currency exchange contract related to acquisition — — 1,999.4 10.4
−Removed: While not predictive, a hypothetical 5% decrease in the Euro as of December 30, 2022 would change the fair value of the foreign currency exchange contract related to the pending acquisition of Transporeon by $68 million.
INDEX TO FINANCIAL STATEMENTS
5 unchanged sentences
Notes to Consolidated Financial Statements
+Added: De scription of Business and Accounting Policies
+Added: Earnings per Share
+Added: Acquisitio ns
+Added: D ivestitures
+Added: Intangible Assets and Goodwill
+Added: Certain Balance Sheet Components
+Added: Reporting Segment and Geographic Information
+Added: Commitments and Contingencies
+Added: Fair Value Measurements
+Added: Deferred Revenue and Remaining Performance Obligations
+Added: Employee Stock Benefit Plans
+Added: Common Stock Repurchase
+Added: S ubsequent Event
Reports of Independent Registered Public Accounting Firm (PCAOB ID:
+Added: Index to Financial Statements
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.