−Removed: QUANTITATIVE AND QUALITATIVE
−Removed: DISCLOSURES ABOUT MARKET RISK
−Removed: In general, we can be exposed to market
−Removed: risks including fluctuations in interest rates, foreign currency exchange rates and certain commodity prices, and that can affect
−Removed: the cost of operating, investing, and financing under those conditions.
−Removed: The Company believes it has moderate exposure to these
−Removed: We assess market risk based on changes in interest rates, foreign currency rates, and commodity prices utilizing a sensitivity
−Removed: analysis that measures the potential loss in earnings, fair values, and cash flows based on a hypothetical change in these rates
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
+Added: In general, we can be exposed to market risks including fluctuations in interest rates, foreign currency exchange rates and certain commodity prices, and that can affect the cost of operating, investing, and financing under those conditions.
+Added: The Company believes it has moderate exposure to these risks.
+Added: We assess market risk based on changes in interest rates, foreign currency rates, and commodity prices utilizing a sensitivity analysis that measures the potential loss in earnings, fair values, and cash flows based on a hypothetical change in these rates and prices.
Interest Rate Risks
−Removed: Our primary exposure to market risk is
−Removed: interest rate risk associated with our credit facility, since the interest is indexed to LIBOR.
−Removed: We entered into our current credit
−Removed: facility on May 3, 2019, and simultaneously terminated our previous credit facility.
−Removed: The applicable interest rate for the outstanding
−Removed: borrowings under our applicable credit facility as of December 31, 2019 and 2018 was 3.3125% and 3.8493%, respectively.
−Removed: outstanding as of December 31, 2019 and 2018 were $22,670,000 and $22,062,000, respectively.
−Removed: An increase of 100-basis points in
−Removed: market interest rates would not cause a material effect on interest expense.
+Added: Our primary exposure to market risk is interest rate risk associated with our credit facility, since the interest is indexed to LIBOR.
+Added: We entered into our current credit facility on May 3, 2019, and simultaneously terminated our previous credit facility.
+Added: The applicable interest rate for the outstanding borrowings under our applicable credit facility as of December 31, 2020 and 2019 was 2.0625% and 3.3125%, respectively.
+Added: Amounts outstanding as of December 31, 2020 and 2019 were $15,579,000 and $22,670,000, respectively.
+Added: An increase of 100-basis points in market interest rates would not cause a material effect on interest expense.
Foreign Currency Risks
−Removed: While we transact business predominantly
+Added: While we transact business predominantly in U.S.
dollars and most of our revenues are collected in U.S.
−Removed: dollars, a portion of our revenues and operating costs are denominated
−Removed: in other currencies.
−Removed: Given the current political uncertainty surrounding the European Union and other economic uncertainties worldwide,
−Removed: changes in the relation of these and other currencies to the U.S.
−Removed: dollar will affect our sales and profitability and could result
−Removed: in exchange losses.
−Removed: For the year ending December 31, 2019, approximately 31% of our sales were denominated in foreign currencies
−Removed: (compared to 33% in the prior year), the most significant of which were the Euro, Canadian Dollar, Norwegian Kroner, and Swiss
−Removed: The primary purpose of our foreign currency hedging activities is to mitigate the foreign currency exchange rate exposure
−Removed: on the cash flows related to forecasted inventory purchases and sales.
−Removed: A hypothetical 10% change in foreign currency rates would
−Removed: not have a material effect on foreign currency gains and losses related to the foreign currency derivatives or the net fair value
−Removed: of the Company’s foreign currency derivatives.
−Removed: We have not held a material amount of foreign assets during the years ended
−Removed: December 31, 2019, 2018 and 2017, and do not believe our foreign assets expose us to a material foreign currency risk.
+Added: dollars, a portion of our revenues and operating costs are denominated in other currencies.
+Added: Given the current political uncertainty surrounding the European Union and other economic uncertainties worldwide, changes in the relation of these and other currencies to the U.S.
+Added: dollar will affect our sales and profitability and could result in exchange losses.
+Added: For the year ending December 31, 2019, approximately 28% of our pro forma sales were denominated in foreign currencies (compared to 29% in the prior year), the most significant of which were the Euro, Canadian Dollar, Norwegian Kroner, and Swiss Franc.
+Added: The primary purpose of our foreign currency hedging activities is to mitigate the foreign currency exchange rate exposure on the cash flows related to forecasted inventory purchases and sales.
+Added: A hypothetical 10% change in foreign currency rates would not have a material effect on foreign currency gains and losses related to the foreign currency derivatives or the net fair value of the Company’s foreign currency derivatives.
+Added: We have not held a material amount of foreign assets during the years ended December 31, 2020, 2019 and 2018, and do not believe our foreign assets expose us to a material foreign currency risk.
Derivative Instruments
−Removed: We employ a variety of practices to manage
−Removed: these market risks, including operating and financing activities and, where deemed appropriate, the use of derivative instruments.
+Added: We employ a variety of practices to manage these market risks, including operating and financing activities and, where deemed appropriate, the use of derivative instruments.
Derivative instruments are used only for risk management purposes and not for speculation or trading.
−Removed: Derivatives are such that
−Removed: a specific debt instrument, contract, or anticipated purchase determines the amount, maturity, and other specifics of the hedge.
−Removed: If a derivative contract is entered into, we either determine that it is an economic hedge or we designate the derivative as a
−Removed: cash flow or fair value hedge.
−Removed: We do not hold derivative financial investments, derivative commodity investments, engage in foreign
−Removed: currency hedging or other transactions that expose us to material market risks.
+Added: Derivatives are such that a specific debt instrument, contract, or anticipated purchase determines the amount, maturity, and other specifics of the hedge.
+Added: If a derivative contract is entered into, we either determine that it is an economic hedge or we designate the derivative as a cash flow or fair value hedge.
+Added: We do not hold derivative financial investments, derivative commodity investments, engage in foreign currency hedging or other transactions that expose us to material market risks.
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.