−Removed: Quantitative and Qualitative Disclosures about Market Risk
−Removed: In the normal course of doing business, we are exposed to the risks associated with foreign currency exchange rates and changes in interest rates.
−Removed: We employ established policies and procedures governing the use of financial instruments to manage our exposure to such risks.
+Added: Quantitative and Qualitative Disclosures abo ut Market Risk
+Added: In the normal course of doing business, the Company is exposed to risks associated with foreign currency exchange rates and changes in interest rates.
+Added: The Company employs established policies and procedures governing the use of financial instruments to manage its exposure to such risks.
+Added: Information about the Company’s market risk is presented in Part II, Item 7A in its fiscal 2023 Annual Report on Form 10-K.
+Added: There have been no material changes to the Company’s market risk during the first three months of fiscal 2024.
Exchange Rate Risk
−Removed: We conduct business globally in numerous currencies and are therefore exposed to foreign currency risks.
−Removed: We use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates.
−Removed: We do not hold or issue derivatives for trading purposes or make speculative investments in foreign currencies.
−Removed: We sometimes use foreign exchange forward contracts to hedge forecasted foreign currency transactions relating to sales and purchase transactions.
−Removed: The foreign exchange hedges do not qualify as cash flow hedges.
−Removed: The changes in fair value related to the hedges will be recorded in income or expenses line items on our statements of operations.
−Removed: From time-to-time, we also enter into foreign exchange forward contracts to mitigate the change in fair value of specific non-functional currency assets and liabilities on the balance sheet.
+Added: The Company conducts business globally in numerous currencies and are therefore exposed to foreign currency risks.
+Added: From time to time, the Company uses derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates.
+Added: The Company does not hold or issue derivatives for trading purposes or make speculative investments in foreign currencies.
+Added: The Company enters into foreign exchange forward contracts to mitigate the change in fair value of specific non-functional currency assets and liabilities on the balance sheet.
All balance sheet hedges are marked to market through earnings every period.
Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities.
−Removed: As of March 31, 2023, we had no forward contracts outstanding.
−Removed: Certain of our international business is transacted in non-U.S.
−Removed: dollar currency.
−Removed: As discussed above, from time to time we utilize foreign currency hedging instruments to minimize the currency risk of international transactions.
−Removed: The impact of
−Removed: translating the assets and liabilities of foreign operations to U.S.
−Removed: dollars for the first nine months of fiscal 2023 and 2022 was $0.3 million and $(1.1) million, respectively, and was included as a component of stockholders’ equity.
−Removed: As of March 31, 2023 and July 1, 2022, the cumulative translation adjustment decreased our equity by $15.8 million and $16.0 million, respectively.
+Added: The Company did not have any foreign exchange forward contracts outstanding as of September 29, 2023.
+Added: Certain of the Company’s international business are transacted in non-U.S.
+Added: dollar (“USD”) currencies.
+Added: From time to time, the Company utilizes foreign currency hedging instruments to minimize the currency risk of non-USD transactions.
+Added: The impact of translating the assets and liabilities of foreign operations to USD is included as a component of stockholders’ equity.
+Added: As of September 29, 2023 and June 30, 2023, the cumulative translation adjustment decreased stockholders’ equity by $16.0 million and $16.0 million, respectively.
Interest Rate Risk
−Removed: Our exposure to market risk for changes in interest rates relates primarily to our cash equivalents and borrowings under our SVB Credit Facility.
+Added: The Company’s exposure to market risk for changes in interest rates relates primarily to its cash equivalents and borrowings under its Credit Facility.
Exposure on Cash Equivalents
−Removed: We had $22.5 million in total cash and cash equivalents as of March 31, 2023.
−Removed: Cash equivalents totaled $3.7 million as of March 31, 2023 and were comprised of bank certificates of deposit.
−Removed: Cash equivalents investments have been recorded at fair value on our balance sheet.
+Added: The Company had $35.5 million in total cash and cash equivalents as of September 29, 2023.
+Added: Cash equivalents totaled $11.8 million as of September 29, 2023 and were comprised of money market funds and bank certificates of deposit.
+Added: Cash equivalents have been recorded at fair value.
Fair value is measured using inputs that fall into a three-level hierarchy that prioritizes the inputs used to measure fair value based on observability of such inputs.
−Removed: For more information on the fair value measurements of cash equivalents, please refer to “Note 3 Fair Value Measurements of Assets and Liabilities” of the Notes to unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
−Removed: Our cash equivalents earn interest at fixed rates;
+Added: For more information on the fair value measurements of cash equivalents, please refer to Note 6.
+Added: Fair Value Measurements of Assets and Liabilities of the Notes to unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
+Added: The Company’s cash equivalents earn interest at fixed rates;
therefore, changes in interest rates will not generate a gain or loss on these investments unless they are sold prior to maturity.
−Removed: The weighted-average days to maturity for cash equivalents held as of March 31, 2023 was 27 days, and these investments had an average yield of approximately 5% per annum.
−Removed: A 10% change in interest rates on our cash equivalents is not expected to have a material impact on our financial position, results of operations, or cash flows.
+Added: The weighted-average days to maturity for cash equivalents held as of September 29, 2023 was 35 days, and these investments had an average yield of approximately 4.3% per annum.
+Added: A 10% change in interest rates on the Company’s cash equivalents is not expected to have a material impact on its financial position, results of operations, or cash flows.
Exposure on Borrowings
−Removed: Our borrowings under the SVB Credit Facility incurred interest at the prime rate plus a spread of 0.50% to 1.50% with such spread determined based on our adjusted quick ratio.
−Removed: During the first nine months of fiscal 2023, our weighted-average interest rate was 6.96%, and the interest expense on these borrowings was immaterial.
−Removed: A 10% change in interest rates on the current borrowings or on future borrowings is not expected to have a material impact on our financial position, results of operations, or cash flows since interest on our borrowings is not material to our overall financial position.
+Added: The Company’s borrowings under the current Credit Facility bear interest at either:
+Added: (a) Adjusted Term SOFR plus the applicable margin;
+Added: or (b) the Base Rate plus the applicable margin.
+Added: The pricing levels for interest rate margins are determined based on the Consolidated Total Leverage Ratio as determined and adjusted quarterly.
+Added: As of September 29, 2023, the applicable margin on Adjusted Term SOFR and Base Rate borrowings was 2.75% and 1.75%, respectively.
+Added: A 10% change in interest rates on borrowings is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows.
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.