1 unchanged sentence
INVESTMENT SECURITIES
−Removed: The Company maintains its cash equivalents in financial instruments, primarily time deposits and money market funds, with original maturities of three months or less.
+Added: The Company maintains its cash equivalents in financial instruments, primarily money market funds and time deposits, with original maturities of three months or less.
Due to the short-term nature of these instruments, changes in interest rates are not expected to materially affect the fair value of these financial instruments.
2 unchanged sentences
INTEREST RATE RISK
−Removed: As of February 1, 2020 , the Company had approximately $233.3 million in gross borrowings outstanding under its Term Loan Facility and no borrowings outstanding under its Amended ABL Facility.
−Removed: The Credit Facilities carry interest rates that are tied to LIBO rate, or an alternate base rate, plus a margin.
−Removed: The interest rate on the Term Loan Facility has a 100 basis point LIBO rate floor, and assuming no changes in the Company’s financial structure as it stands, an increase in the interest rate on borrowings under the Term Loan Facility as of February 1, 2020 of 100 basis points would increase Fiscal 2020 annual interest expense by approximately $2.4 million .
−Removed: This hypothetical analysis for Fiscal 2020 may differ from the actual change in interest expense due to potential changes in interest rates or gross borrowings outstanding under the Company’s Credit Facilities.
−Removed: The expected transition from the widespread use of LIBO rate to alternative rates over the next several years is not expected to have a material impact on interest expense on borrowings outstanding under the Company’s Credit Facilities.
+Added: Prior to July 2, 2020, our exposure to market risk due to changes in interest rates related primarily to the increase or decrease in the amount of interest expense from fluctuations in the LIBO rate, or an alternate base rate associated with the Term Loan Facility and the ABL Facility.
+Added: On July 2, 2020, the Company issued the Senior Secured Notes due in 2025 with a 8.75% fixed interest rate per annum and repaid all outstanding borrowings under the Term Loan Facility and the ABL Facility, thereby eliminating any then existing cash flow market risk due to changes in interest rates.
+Added: The Senior Secured Notes are exposed to interest rate risk that is limited to changes in fair value.
+Added: This analysis for Fiscal 2021 may differ from the actual results due to potential changes in gross borrowings outstanding under the ABL Facility and potential changes in interest rate terms and limitations described within the associated credit agreement.
+Added: The expected transition from the widespread use of LIBO rate to alternative rates over the next several years is not expected to have a material impact on the Company’s interest expense.
+Added: In addition, the Company has seen, and may continue to see, lower interest income earned on the Company’s investments and cash holdings, reflecting the lower interest rate environment.
FOREIGN CURRENCY EXCHANGE RATE RISK
10 unchanged sentences
The Company does not use forward contracts to engage in currency speculation.
−Removed: All outstanding foreign currency exchange forward contracts are recorded at fair value at the end of each fiscal period.
−Removed: Refer to Note 15 , “ DERIVATIVE INSTRUMENTS ,” included in “ ITEM 8.
−Removed: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ” of this Annual Report on Form 10-K for the fair value of outstanding foreign currency exchange forward contracts included in other current assets and accrued expenses as of February 1, 2020 and February 2, 2019 .
+Added: Outstanding foreign currency exchange forward contracts are recorded at fair value at the end of each fiscal period.
Foreign currency exchange forward contracts are sensitive to changes in foreign currency exchange rates.
2 unchanged sentences
Such a hypothetical devaluation would decrease derivative contract fair values by approximately $13.7 million.
−Removed: As the Company’s foreign currency exchange forward contracts are primarily designated as cash flow hedges of forecasted transactions, the hypothetical change in fair value would be expected to be largely offset by the net change in fair values of the underlying hedged items.
−Removed: For a detailed discussion of significant risk factors that have the potential to cause our actual results to differ materially from our expectations, refer to “ ITEM 1A.
+Added: As the Company’s foreign currency exchange forward contracts are primarily designated as cash flow hedges of forecasted transactions, the hypothetical change in fair values would be expected to be largely offset by the net change in fair values of the underlying hedged items.
+Added: Refer to Note 15, “ DERIVATIVE INSTRUMENTS ,” included in “ ITEM 8.
+Added: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ” of this Annual Report on Form 10-K for the fair value of outstanding foreign currency exchange forward contracts included in other current assets and accrued expenses as of January 30, 2021 and February 1, 2020.
+Added: For a detailed discussion of material risk factors that have the potential to cause our actual results to differ materially from our expectations, refer to “ ITEM 1A.
RISK FACTORS ,” included in this Annual Report on Form 10-K.
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.