1 unchanged sentence
Our market risk is impacted by changes in foreign currency exchange rates as well as changes in interest rates.
−Removed: We occasionally utilize derivative instruments as part of our overall financial risk management policy, but do not use derivative instruments for speculative or trading purposes.
+Added: We occasionally utilize derivative instruments as part of our overall financial risk management policy, and do not use derivative instruments for speculative or trading purposes.
Foreign Currency Exchange Rate Risk
−Removed: Because we operate throughout North America, Australia and New Zealand and approximately 12% of our fiscal 2024 net sales were generated outside the United States, foreign currency exchange rates can impact our financial position, results of operations, and competitive position.
+Added: As we operate throughout North America, Australia and New Zealand, and approximately 12% of our fiscal 2025 net sales were generated outside the United States, foreign currency exchange rates can impact our financial position, results of operations, and competitive position.
The financial statements of foreign subsidiaries are translated into their U.S.
1 unchanged sentence
Translation gains and losses are components of other comprehensive income as reported in the statements of consolidated comprehensive income.
−Removed: Transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in the statements of consolidated income as a component of other (income) expense, net.
−Removed: Applied does not currently hedge the net investments in our foreign operations.
−Removed: During the course of the fiscal year, the Canadian and Mexican currency exchange rates decreased in relation to the U.S.
−Removed: dollar by 3.2% and 6.8%, respectively, while the Australian and New Zealand currency exchange rates increased in relation to the U.S.
−Removed: dollar by 0.6% and 0.2%, respectively.
+Added: Transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than any of our subsidiaries' functional currency are recognized in the statements of consolidated income as a component of other (income) expense, net.
+Added: We do not currently hedge the net investments in our foreign operations.
+Added: During the course of the fiscal year, the Mexican, Australian and New Zealand currency exchange rates weakened in relation to the U.S.
+Added: dollar by 2 .5%, 1.8% and 0.5%, respectively, while the Canadian currency exchange rate strengthened in relation to the U.S.
+Added: dollar by 0.1%.
In the twelve months ended June 30, 2025, we experienced net foreign currency translation losses totaling $1.7 million, which were included in other comprehensive income.
1 unchanged sentence
A 10% strengthening of the U.S.
−Removed: dollar relative to foreign currencies that affect the Company from the levels experienced during the year ended June 30, 2024 would have resulted in a $3.2 million decrease in net income for the year ended June 30, 2024.
+Added: dollar relative to foreign currencies that affect the Company from the levels experienced during the fiscal year ended June 30, 2025 would have resulted in a $2.3 million decrease in net income for the fiscal year ended June 30, 2025.
Interest Rate Risk
Our primary exposure to interest rate risk results from our outstanding debt obligations with variable interest rates.
−Removed: The levels of fees and interest charged on our various debt facilities are based upon leverage levels and market interest rates.
−Removed: The Company uses interest rate swap instruments to mitigate variability in forecasted interest rates.
−Removed: Our variable interest rate debt facilities outstanding include our five-year credit facility, which provides for a revolving credit facility with a capacity of up to $900.0 million in borrowings with $384.0 million outstanding at June 30, 2024, and a $188.3 million trade receivable securitization facility, all of which was outstanding at June 30, 2024.
−Removed: In January 2019, the Company entered into an interest rate swap on $463.0 million of the Company’s U.S.
+Added: The levels of fees and interest charged on our various debt facilities are based upon our leverage level and market interest rates.
+Added: We use interest rate swap instruments to mitigate variability in forecasted interest rates.
+Added: Our variable interest rate debt facilities outstanding include our five-year credit facility, which provides for a revolving credit facility with a capacity of up to $900.0 million in borrowings with $384.0 million outstanding at June 30, 2025, and a $250.0 million trade receivable securitization facility, of which $188.3 million was outstanding at June 30, 2025.
+Added: In January 2019, we entered into an interest rate swap on $463.0 million of our U.S.
dollar-denominated unsecured variable rate debt.
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The interest rate swap effectively converts a portion of the floating rate interest payment into a fixed rate interest payment.
−Removed: The Company designated the interest rate swap as a pay-fixed, receive-floating interest rate swap instrument and is accounting for this derivative as a cash flow hedge.
−Removed: Fixed interest rate debt facilities include $25.0 million outstanding under our unsecured shelf facility agreement, as well as $0.1 million of assumed debt from the purchase of our headquarters facility.
+Added: We designated the interest rate swap as a pay-fixed, receive-floating interest rate swap instrument and is accounting for this derivative as a cash flow hedge.
We had total average variable interest rate bank borrowings of $ 572.3 million during fiscal 2025.
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Including the impact of the interest rate swap, the impact of a hypothetical 1.0% increase in the variable interest rate would have resulted in a $1.9 million increase in interest expense.
−Removed: For more information relating to borrowing and interest rates, see the “Liquidity and Capital Resources” section of “Management's Discussion and Analysis of Financial Condition and Results of Operations ” in Item 7 and Notes 6 and 7 to the consolidated financial statements in Item 8.
+Added: For more information relating to borrowing and interest rates, see the “Liquidity and Capital Resources” section of “Management's Discussion and Analysis of Financial Condition and Results of Operations ” in Item 7 and Notes 6 and 7 to the consolidated financial statements in Item 8 of this Annual Report.
That information is also incorporated here by reference.
−Removed: In addition, see Item 1A, “Risk Factors,” for additional risk factors relating to our business.
+Added: In addition, see Item 1A, “Risk Factors,” of this Annual Report for additional risk factors relating to our business.
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.