3 unchanged sentences
Information about the Company’s market risk is presented in Part II, Item 7A in its fiscal 2024 Annual Report on Form 10-K.
−Removed: There have been no material changes to the Company’s market risk during the first nine months of fiscal 2024.
+Added: There have been no material changes to the Company’s market risk during the first three months of fiscal 2025.
Exchange Rate Risk
2 unchanged sentences
The Company does not hold or issue derivatives for trading purposes or make speculative investments in foreign currencies.
−Removed: 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.
+Added: From time to time, 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: The Company did not have any foreign exchange forward contracts outstanding as of March 29, 2024.
+Added: The Company did not have any foreign exchange forward contracts outstanding as of September 27, 2024.
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 March 29, 2024 and June 30, 2023, the cumulative translation adjustment decreased stockholders’ equity by $15.8 million and $16.0 million, respectively.
+Added: As of September 27, 2024 and June 28, 2024, the cumulative translation adjustment decreased stockholders’ equity by $17.2 million and $19.3 million, respectively.
Interest Rate Risk
The Company’s exposure to market risk for changes in interest rates relates primarily to its cash equivalents and borrowings under its Credit Facility.
+Added: Refer to Note 6.
+Added: Credit Facility and Debt of the Notes for further information.
Exposure on Cash Equivalents
−Removed: The Company had $58.2 million in total cash and cash equivalents as of March 29, 2024.
−Removed: Cash equivalents totaled $11.1 million as of March 29, 2024 and were comprised of money market funds and bank certificates of deposit.
+Added: The Company had $51.0 million in total cash and cash equivalents as of September 27, 2024.
+Added: Cash equivalents totaled $6.4 million as of September 27, 2024 and were comprised of money market funds and bank certificates of deposit.
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 6.
−Removed: 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: For more information on the fair value measurements of cash equivalents, refer to Note 5.
+Added: Fair Value Measurements of Assets and Liabilities of the Notes for further information.
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 29, 2024 was 43 days, and these investments had an average yield of approximately 3.3% per annum.
+Added: The weighted-average days to maturity for cash equivalents held as of September 27, 2024 was 51 days, and these investments had an average yield of approximately 5.4% 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
−Removed: As of March 29, 2024, the Company had $49.4 million outstanding under its Term Loan and no borrowings under its Revolver.
+Added: As of September 27, 2024, the Company had $48.8 million outstanding under its Term Loan and $35.0 million outstanding 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 March 29, 2024, the applicable margin on Adjusted Term SOFR and Base Rate borrowings was 2.50% and 1.50%, respectively.
−Removed: The effective rate of interest on the Company’s outstanding Term Loan borrowings as of March 29, 2024 was 7.9%.
−Removed: 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 March 29, 2024.
+Added: As of September 27, 2024, the applicable margin on Adjusted Term SOFR and Base Rate borrowings was 2.50% and 1.50%, respectively.
+Added: The effective rate of interest on the outstanding Term Loan and Revolver borrowings as of September 27, 2024 was 7.4% and 7.6%, respectively.
+Added: A 10% change in interest rates is estimated to have a $0.6 million impact on annual interest expense on the Company’s outstanding long-term debt as of September 27, 2024.
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.