7 unchanged sentences
We purchase food and other commodities for use in our operations based on market prices established with our suppliers.
−Removed: Many of the commodities purchased by us can be subject to volatility due to market supply and demand factors outside of our control.
−Removed: We mitigate the risk of supply shortages and obtain competitive prices by utilizing multiple qualified suppliers for substantially all our ingredients and supplies.
+Added: Many of these commodities can be subject to market volatility driven by supply and demand factors outside of our control, including the relative availability of labor and distribution, weather, natural disasters, inventory levels, and political and economic conditions.
+Added: Climate change may further exacerbate a number of these factors.
+Added: During fiscal 2021, we began to experience certain supply shortages and transportation delays largely attributable to impacts of the COVID-19 pandemic.
+Added: We expect these shortages and delays to continue in fiscal 2022.
We negotiate short-term and long-term agreements for some of our principal commodity, supply and equipment requirements, such as certain dairy products and poultry, depending on market conditions and expected demand.
We continue to evaluate the possibility of entering into similar arrangements for other commodities and periodically evaluate hedging vehicles, such as direct financial instruments, to assist us in managing risk and variability associated with such commodities.
−Removed: Although these vehicles may be available to us, as of June 29, 2021, we had chosen not to enter into any hedging contracts due to pricing volatility, excessive risk premiums, hedge inefficiencies or other factors.
+Added: As of March 29, 2022, we had no hedging contracts in place.
Commodities for which we have not entered into contracts can be subject to unforeseen supply and cost fluctuations, which at times may be significant.
1 unchanged sentence
Commodities we purchase on the international market may be subject to even greater fluctuations in cost and availability, which could result from a variety of factors, including the value of the U.S.
−Removed: dollar relative to other currencies, international trade disputes, tariffs and varying global demand.
+Added: dollar relative to other currencies, international trade disputes, tariffs, varying global demand and the geopolitical environment.
We may or may not have the ability to increase menu prices or vary menu items in response to food commodity price increases.
−Removed: For the third quarters of fiscal 2021 and 2020, a hypothetical increase of 1% in food costs would have negatively impacted cost of sales by $1.7 million and $1.2 million, respectively.
+Added: For the first quarters of fiscal 2022 and 2021, a hypothetical increase of 1% in food costs would have negatively impacted cost of sales by $1.9 million and $1.4 million, respectively.
We are exposed to market risk from interest rate changes on our funded debt.
−Removed: This exposure relates to the component of the interest rate on the Revolving Facility that is indexed to market rates.
−Removed: Based on outstanding borrowings at September 28, 2021 and December 29, 2020, a hypothetical 1% rise in interest rates would have increased interest expense by $1.3 million and $2.8 million, respectively, on an annual basis.
+Added: This exposure relates to the component of the interest rate on the Amended Facility that is indexed to market rates.
+Added: Based on outstanding borrowings at both March 29, 2022 and December 28, 2021, a hypothetical 1% rise in interest rates would have increased interest expense by $1.3 million, on an annual basis.
(See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of our long-term debt.)
1 unchanged sentence
In addition, because changes in these investments are not taxable, gains and losses result in tax benefit and tax expense, respectively, and directly affect net income through the income tax provision.
−Removed: Based on balances at September 28, 2021 and December 29, 2020, a hypothetical 10% decline in the market value of our deferred compensation asset and related liability would not have impacted income before income taxes.
−Removed: However, under such a scenario, net income would have declined by $2.3 million and $2.2 million at September 28, 2021 and December 29, 2020, respectively.
+Added: Based on balances at March 29, 2022 and December 28, 2021, a hypothetical 10% decline in the market value of our deferred compensation asset and related liability would not have impacted income before income taxes.
+Added: However, under such a scenario, net income would have declined by $2.3 million at both March 29, 2022 and December 28, 2021, respectively.
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.