4 unchanged sentences
Foreign Currency Exchange Rate Risk
−Removed: We are impacted by changes in foreign currency exchange rates through sales and purchasing transactions when we sell products and purchase materials in currencies different from the currency in which product and manufacturing costs were incurred.
+Added: We are impacted by changes in foreign currency exchange rates through revenue and purchasing transactions when we sell products and purchase materials in currencies different from the currency in which product and manufacturing costs were incurred.
Our reported financial results of operations, including the reported value of our assets and liabilities, are also impacted by changes in foreign currency exchange rates.
3 unchanged sentences
Although these translation changes have no immediate cash impact, the translation changes may impact future borrowing capacity, and overall value of our net assets.
−Removed: The functional currencies of our worldwide facilities primarily include the United States Dollar (USD), Euro, South Korean Won, New Taiwan Dollar, Japanese Yen, Pound Sterling, Chinese Yuan, and Mexican Peso.
−Removed: Our purchasing and sales activities are primarily denominated in the USD, Japanese Yen, Euro, and Chinese Yuan.
−Removed: Currency exchange rates vary daily and often one currency strengthens against the USD while another currency weakens.
−Removed: Because of the complex interrelationship of the worldwide supply chains and distribution channels, it is difficult to quantify the impact of a change in one or more particular exchange rates.
−Removed: As currencies fluctuate against each other we are exposed to foreign currency exchange rate risk on sales, purchasing transactions, and labor.
−Removed: Exchange rate fluctuations could require us to increase prices to foreign customers, which could result in lower net sales.
−Removed: Alternatively, if we do not adjust the prices for our products in response to unfavorable currency fluctuations, our results of operations could be adversely impacted.
−Removed: Changes in the relative buying power of our customers may impact sales volumes.
−Removed: Acquisitions are a large component of our capital deployment strategy.
−Removed: A significant number of acquisition target opportunities are located outside the U.S., and their value may be denominated in foreign currency.
−Removed: Changes in exchange rates therefore may have a material impact on their valuation in USD and may impact our view of their attractiveness.
+Added: The functional currencies of our worldwide facilities primarily include the United States Dollar, Euro, South Korean Won, New Taiwan Dollar, Japanese Yen, Pound Sterling, and Chinese Yuan.
+Added: We are subject to risks associated with revenue and purchasing activities and costs to operate that are denominated in currencies other than our functional currencies such as the Singapore Dollar, Malaysian Ringgit, Mexican Peso and Philippine Peso.
+Added: The impact of a change in one or more of these particular exchange rates would be immaterial.
From time to time, we may enter into foreign currency exchange rate contracts to hedge against changes in foreign currency exchange rates on assets and liabilities expected to be settled at a future date, including foreign currency, which may be required for a potential foreign acquisition.
5 unchanged sentences
Interest Rate Risk
−Removed: Our market risk exposure relates primarily to changes in interest rates on our Credit Facility.
−Removed: The following table summarizes borrowings (in thousands) under our Credit Facility and the associated interest rate.
−Removed: December 31, 2022
−Removed: Interest Rate
−Removed: Unused Line Fee
−Removed: Term Loan Facility subject to a fixed interest rate
−Removed: Term Loan Facility subject to a variable interest rate
−Removed: Revolving Facility subject to a variable interest rate
−Removed: Total borrowings under the Credit Agreement
−Removed: For more information on the Term Loan Facility see Note 21.
−Removed: Credit Facility in Part II, Item 8 “Financial Statements and Supplementary Data.” For more information on the interest rate swap that fixes the interest rate for a portion of our Term Loan Facility, see Note 8.
−Removed: Derivative Financial Instruments in Part II, Item 8 “Financial Statements and Supplementary Data.” The Term Loan Facility and Revolving Facility bear interest, at our option, at a rate based on a reserve adjusted “Eurodollar Rate” or “Base Rate,” as defined in the Credit Agreement, plus an applicable margin.
−Removed: Our interest payments are impacted by interest rate fluctuations.
−Removed: With respect to the portion of our Credit Facility that is subject a variable interest rate, a hypothetical increase of 100 basis points (1%) in interest rates would have a $1.4 million annual impact on our interest expense.
+Added: Our interest rate risk exposure relates primarily on our variable rate Term Loan Facility.
+Added: As of December 31, 2023 we have interest rate swap agreements in effect that fix the interest rate for $220.7 million at 1.17% of our Term Loan Facility, while $134.3 million of the Term Loan Facility remains floating at 6.21%.
+Added: The Term Loan Facility and Revolving Credit Facility bear interest, at our option, at a rate based on the Base Rate or SOFR, as defined in the Credit Agreement, plus an applicable margin.
+Added: The interest rate swap contracts expire on September 10, 2024.
+Added: After that date, the entire balance of our Term Loan Facility will be subject to a variable interest rate.
+Added: In addition, should we have future borrowings under our Revolving Facility, those borrowings would be subject to a variable rate.
+Added: For more information see Note 18.
+Added: Long-Term Debt in Part II, Item 8 “Financial Statements and Supplementary Data.” For more information on the interest rate swap that fixes the interest rate for a portion of our Term Loan Facility, see Note 7.
+Added: Derivative Financial Instruments in Part II, Item 8 “Financial Statements and Supplementary Data.”
+Added: As of December 31, 2023 with respect to the borrowed portion of our Credit Facility that is subject to a variable interest rate, a hypothetical increase of 100 basis points (1%) in interest rates would have an insignificant impact on our interest expense.
A change in interest rates does not have a material impact upon our future earnings and cash flow for fixed rate debt.
1 unchanged sentence
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.