1 unchanged sentence
Interest Rate Risk
−Removed: Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, short-term and long-term obligations, including the Credit Facilities and the Notes, and foreign currency forward contracts.
+Added: Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and short-term and long-term obligations, including the Credit Facilities and the Notes.
We consider investments in highly liquid instruments purchased with a remaining maturity of three months or less at the date of purchase to be cash equivalents.
−Removed: As of June 30, 2021, we had $320.0 million in principal amount of outstanding borrowings under our Revolving Credit Facility, $88.4 million in principal amount of outstanding borrowings under our Ex-Im Credit Facility, $700.0 million in aggregate principal amount outstanding of the 2025 Notes, $600.0 million in aggregate principal amount outstanding of the 2027 Notes and $400.0 million in aggregate principal amount outstanding of the 2028 Notes, and we held no short-term investments.
+Added: As of September 30, 2021, we had $320.0 million in principal amount of outstanding borrowings under our Revolving Credit Facility, $88.4 million in principal amount of outstanding borrowings under our Ex-Im Credit Facility, $700.0 million in aggregate principal amount outstanding of the 2025 Notes, $600.0 million in aggregate principal amount outstanding of the 2027 Notes and $400.0 million in aggregate principal amount outstanding of the 2028 Notes, and we held no short-term investments.
The Notes and borrowings under our Ex-Im Credit Facility bear interest at a fixed rate and therefore our exposure to market risk for changes in interest rates relates primarily to borrowings under our Revolving Credit Facility, cash equivalents, short-term investments and short-term obligations.
5 unchanged sentences
Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.
−Removed: If the underlying weighted average interest rate on our cash and cash equivalents, assuming balances remain constant over a year, changed by 50 basis points, interest income would have increased or decreased by an insignificant amount for the three months ended June 30, 2021 and 2020.
+Added: If the underlying weighted average interest rate on our cash and cash equivalents, assuming balances remain constant over a year, changed by 50 basis points, interest income would have increased or decreased by an insignificant amount for the three and six months ended September 30, 2021 and 2020.
Because our investment policy restricts us to invest in conservative, interest-bearing investments and because our business strategy does not rely on generating material returns from our investment portfolio, we do not expect our market risk exposure on our investment portfolio to be material.
−Removed: As of June 30, 2021, we had $320.0 million in principal amount of outstanding borrowings under our Revolving Credit Facility.
+Added: As of September 30, 2021, we had $320.0 million in principal amount of outstanding borrowings under our Revolving Credit Facility.
Our primary interest rate under the Revolving Credit Facility is the Eurodollar rate plus an applicable margin that is based on our total leverage ratio.
−Removed: As of June 30, 2021, the weighted average effective interest rate on our outstanding borrowings under the Revolving Credit Facility was 1.59%.
+Added: As of September 30, 2021, the weighted average effective interest rate on our outstanding borrowings under the Revolving Credit Facility was 1.84%.
Assuming the outstanding balance remained constant over a year, a 50 basis point increase in the interest rates would increase interest incurred, prior to effects of capitalized interest, by approximately $1.6 million over a 12-month period.
2 unchanged sentences
However, as our international business is conducted in a variety of foreign currencies, we are exposed to fluctuations in foreign currency exchange rates.
−Removed: A five percent variance in foreign currencies in which our international business is conducted would change our income (loss) before income taxes by an insignificant amount for both the three months ended June 30, 2021 and 2020.
+Added: A five percent variance in foreign currencies in which our international business is conducted would change our income (loss) before income taxes by an insignificant amount for the three and six months ended September 30, 2021 and 2020.
Our objective in managing our exposure to foreign currency risk is to reduce earnings and cash flow volatility associated with foreign exchange rate fluctuations.
Accordingly, from time to time, we may enter into foreign currency forward contracts to mitigate risks associated with foreign currency denominated assets, liabilities, commitments and anticipated foreign currency transactions.
−Removed: As of June 30, 2021 and March 31, 2021, we had no foreign currency forward contracts outstanding.
+Added: As of September 30, 2021 and March 31, 2021, we had no foreign currency forward contracts outstanding.
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.