−Removed: Quantitative and Qualitative Disclosures abo ut Market Risk
+Added: Quantitative and Qualitative Disclosures about Market Risk
In the normal course of doing business, the Company is exposed to risks associated with foreign currency exchange rates and changes in interest rates.
1 unchanged sentence
Information about the Company’s market risk is presented in Part II, Item 7A in its fiscal 2023 Annual Report on Form 10-K.
−Removed: There have been no material changes to the Company’s market risk during the first three months of fiscal 2024.
+Added: There have been no material changes to the Company’s market risk during the first six months of fiscal 2024.
Exchange Rate Risk
−Removed: The Company conducts business globally in numerous currencies and are therefore exposed to foreign currency risks.
+Added: The Company conducts business globally in numerous currencies and is therefore exposed to foreign currency risks.
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.
3 unchanged sentences
Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities.
−Removed: The Company did not have any foreign exchange forward contracts outstanding as of September 29, 2023.
+Added: The Company did not have any foreign exchange forward contracts outstanding as of December 29, 2023.
Certain of the Company’s international business are transacted in non-U.S.
2 unchanged sentences
The impact of translating the assets and liabilities of foreign operations to USD is included as a component of stockholders’ equity.
−Removed: 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.
+Added: As of December 29, 2023 and June 30, 2023, the cumulative translation adjustment decreased stockholders’ equity by $15.4 million and $16.0 million, respectively.
Interest Rate Risk
1 unchanged sentence
Exposure on Cash Equivalents
−Removed: The Company had $35.5 million in total cash and cash equivalents as of September 29, 2023.
−Removed: Cash equivalents totaled $11.8 million as of September 29, 2023 and were comprised of money market funds and bank certificates of deposit.
−Removed: Cash equivalents have been recorded at fair value.
+Added: The Company had $45.9 million in total cash and cash equivalents as of December 29, 2023.
+Added: Cash equivalents totaled $11.8 million as of December 29, 2023 and were comprised of money market funds and bank certificates of deposit.
+Added: 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.
3 unchanged sentences
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 September 29, 2023 was 35 days, and these investments had an average yield of approximately 4.3% per annum.
+Added: The weighted-average days to maturity for cash equivalents held as of December 29, 2023 was 47 days, and these investments had an average yield of approximately 4.7% per annum.
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
+Added: As of December 29, 2023, the Company had $50.0 million outstanding under its Term Loan and no borrowings under its Revolver.
The Company’s borrowings under the current Credit Facility bear interest at either:
2 unchanged sentences
The pricing levels for interest rate margins are determined based on the Consolidated Total Leverage Ratio as determined and adjusted quarterly.
−Removed: As of September 29, 2023, the applicable margin on Adjusted Term SOFR and Base Rate borrowings was 2.75% and 1.75%, respectively.
−Removed: 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.
+Added: As of December 29, 2023, the applicable margin on Adjusted Term SOFR and Base Rate borrowings was 2.75% and 1.75%, respectively.
+Added: The effective rate of interest on the Company’s outstanding Term Loan borrowings as of December 29, 2023 was 8.2%.
+Added: A 10% change in interest rates is estimated to have a $0.4 million impact on annual interest expense on the Company’s outstanding long-term debt as of December 29, 2023.
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.