6 unchanged sentences
Actual results may differ materially from the following discussion based on general conditions in the commodity and financial markets.
−Removed: The cost of products and services used in our operations is subject to volatility due to the relative availability of labor and distribution, weather, natural disasters, inventory levels and other supply and/or demand impacting events such as the COVID-19 pandemic, geopolitical events, economic conditions or other unforeseen circumstances.
+Added: The cost of products and services used in our operations is subject to volatility due to the relative availability of labor and distribution, weather, natural disasters, inventory levels and other supply and/or demand impacting events such as geopolitical events, economic conditions or other unforeseen circumstances.
Climate change may further exacerbate a number of these factors.
6 unchanged sentences
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: As of April 4, 2023, we had no hedging contracts in place.
+Added: As of July 4, 2023, we had no hedging contracts in place.
Commodities not subject to fixed price and volume agreements can be subject to unforeseen supply and cost fluctuations, which at times may be significant.
4 unchanged sentences
We may not have the ability to increase menu prices or vary menu items in response to food commodity price increases.
−Removed: For the first quarter of fiscal 2023 and 2022, a hypothetical increase of 1% in food costs would have negatively impacted cost of sales by $2.1 million and $1.9 million, respectively.
+Added: For second quarter of both fiscal 2023 and 2022, a hypothetical increase of 1% in food costs would have negatively impacted cost of sales by $2.0 million.
We are exposed to market risk from interest rate changes on our funded debt.
This exposure relates to the component of the interest rate on our Loan Agreement that is indexed to market rates.
−Removed: Based on outstanding borrowings at both April 4, 2023 and January 3, 2023, a hypothetical 1% rise in interest rates would have increased interest expense by $1.3 million, on an annual basis.
+Added: Based on outstanding borrowings at both July 4, 2023 and January 3, 2023, 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 April 4, 2023 and January 3, 2023, 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 $2.1 million and $2.0 million at April 4, 2023 and January 3, 2023, respectively.
+Added: Based on balances at July 4, 2023 and January 3, 2023, 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 $2.0 million at both July 4, 2023 and January 3, 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.