1 unchanged sentence
As discussed in Note 16 to our audited consolidated financial statements for the fiscal year ended September 30, 2020, the Company is exposed to market risk arising from changes in market rates and prices, including movements in foreign currency exchange rates and interest rates.
−Removed: As of June 30, 2020, other than as described below, there have been no material changes to the Company’s exposure to market risk since September 30, 2019.
+Added: As of December 31, 2020, other than as described below, there have been no material changes to the Company’s exposure to market risk since September 30, 2020.
Foreign Currency Risk
3 unchanged sentences
We focus on managing the level of exposure to the risk of foreign currency exchange rate fluctuations on major currencies, which can include the Euro, British pound sterling, Japanese yen, Canadian dollar, Swedish krona, Australian dollar, Brazilian real, Korean won and Norwegian krone, and in many cases we have natural hedges where we have expenses associated with local operations that offset the revenue in local currency and our Euro-denominated debt, which can offset declines in the Euro.
−Removed: As of June 30, 2020, the Company had outstanding hedge contracts for the sale of $121 million and the purchase of $61 million of foreign currencies at fixed rates.
−Removed: Subsequent to June 30, 2020, certain of our foreign exchange contracts expired.
+Added: As of December 31, 2020, the Company had outstanding hedge contracts for the sale of $270 million and the purchase of $176 million of foreign currencies at fixed rates.
+Added: Subsequent to December 31, 2020, certain of our foreign exchange contracts expired.
The fair value of foreign exchange contracts is subject to changes in foreign currency exchange rates.
For the purpose of assessing the specific risks, we use a sensitivity analysis to determine the effects that market risk exposures may have on the fair value of our financial instruments.
−Removed: For foreign exchange forward contracts outstanding at June 30, 2020, we typically perform a sensitivity analysis assuming a hypothetical 10% depreciation of the U.S.
+Added: For foreign exchange forward contracts outstanding at December 31, 2020, we typically perform a sensitivity analysis assuming a hypothetical 10% depreciation of the U.S.
dollar against foreign currencies from prevailing foreign currency exchange rates and assuming no change in interest rates.
2 unchanged sentences
Interest Rate Risk
−Removed: We had $3.019 billion of principal debt outstanding at June 30, 2020, of which $1.326 billion was variable-rate debt and $1.693 billion was fixed-rate debt.
+Added: We had $3.419 billion of principal debt outstanding at December 31, 2020, of which $820 million was variable-rate debt and $2.599 billion was fixed-rate debt.
As such, we are exposed to changes in interest rates.
−Removed: At June 30, 2020, 56% of the Company’s debt was at a fixed rate.
−Removed: In addition, as of June 30, 2020, we have the option under all of our floating rate debt under the Senior Term Loan Facility to select a one, two, three or six month LIBOR rate.
+Added: At December 31, 2020, 76% of the Company’s debt was at a fixed rate.
+Added: In addition, as of December 31, 2020, we have the option under all of our floating rate debt under the Senior Term Loan Facility to select a one, two, three or six month LIBOR rate.
To manage interest rate risk on $820 million of U.S.
dollar-denominated variable-rate debt, the Company has entered into interest rate swaps to effectively convert the floating interest rates to a fixed interest rate on a portion of its variable-rate debt.
−Removed: Based on the level of interest rates prevailing at June 30, 2020, the fair value of the Company’s fixed-rate and variable-rate debt was approximately $3.043 billion.
−Removed: Further, as of June 30, 2020, based on the amount of the Company’s fixed-rate debt, a 25 basis point increase or decrease in the level of interest rates would decrease the fair value of the fixed-rate debt by approximately $2 million or increase the fair value of the fixed-rate debt by approximately $5 million.
+Added: As of December 31, 2020, the Company’s interest rate swaps are expected to mature within three years .
+Added: Based on the level of interest rates prevailing at December 31, 2020, the fair value of the Company’s fixed-rate and variable-rate debt was approximately $3.468 billion.
+Added: Further, as of December 31, 2020, based on the amount of the Company’s fixed-rate debt, a 25 basis point increase or decrease in the level of interest rates would decrease the fair value of the fixed-rate debt by approximately $15 million or increase the fair value of the fixed-rate debt by approximately $39 million.
This potential fluctuation is based on the simplified assumption that the level of fixed-rate debt remains constant with an immediate across the board increase or decrease in the level of interest rates with no subsequent changes in rates for the remainder of the period.
5 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.