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Investment and Interest Rate Risk.
−Removed: At December 28, 2019, our investment portfolio included short-term, fixed-income investment securities with a fair value of approximately $0.9 million, and we did not hold or issue financial instruments for trading purposes.
+Added: At December 26, 2020, our investment portfolio included short-term, fixed-income investment securities with a fair value of approximately $20.7 million, and we did not hold or issue financial instruments for trading purposes.
These securities are subject to interest rate risk and will likely decline in value if interest rates increase.
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We evaluate our investments periodically for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and our ability and intent to hold the investment for a period of time sufficient for anticipated recovery of market value.
−Removed: As of December 28, 2019, we had no investments with loss positions.
+Added: As of December 26, 2020, the cost and fair value of investments with loss positions were approximately $8.7 million.
+Added: We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.
Our long-term debt is carried at amortized cost and fluctuations in interest rates do not impact our consolidated financial statements.
However, the fair value of our debt will generally fluctuate with movements of interest rates, increasing in periods of declining rates of interest and declining in periods of increasing rates of interest.
−Removed: As of December 28, 2019, we have approximately $343.0 million of long-term debt due under a credit facility that is subject to quarterly interest payments that are based on either a base rate plus a margin of up to 2.0% per annum, or the London Interbank Offered Rate (LIBOR) plus a margin of up to 3.0% per annum.
+Added: As of December 26, 2020, we have approximately $306.6 million of long-term debt due under a credit facility that is subject to quarterly interest payments that are based on either a base rate plus a margin of up to 2.0% per annum, or the London Interbank Offered Rate (LIBOR) plus a margin of up to 3.0% per annum.
The selection of the interest rate formula is at our discretion.
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At December 26, 2020, the interest rate in effect on these borrowings was 3.15%.
−Removed: In July 2017, the UK’s Financial Conduct Authority, which regulates the LIBOR, announced that it intends to phase out LIBOR by the end of 2021.
+Added: In July 2017, the UK’s Financial Conduct Authority, which regulates the LIBOR, announced that it intends to phase out LIBOR by the end of 2021.
After 2021, it is unclear whether banks will continue to provide LIBOR submissions to the administrator of LIBOR, and no consensus currently exists as to what benchmark rate or rates may become accepted alternatives to LIBOR.
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The uncertainty regarding the future of LIBOR, as well as the transition from LIBOR to any alternative reference rate or rates, could have adverse impacts on floating rate obligations, loans, deposits, derivatives and other financial instruments that currently use LIBOR as a benchmark rate.
−Removed: Our Term B Loan facility constitutes our most significant exposure to this transition and there is no guarantee that a shift from LIBOR to a new reference rate will not result in increases to our borrowing costs.
+Added: Our Term Loan B facility constitutes our most significant exposure to this transition and there is no guarantee that a shift from LIBOR to a new reference rate will not result in increases to our borrowing costs.
Foreign Currency Exchange Risk.
3 unchanged sentences
These fluctuations can impact our reported earnings.
+Added: During the fourth quarter of 2020, we began entering into foreign currency forward contracts with a financial institution to hedge against future movements in foreign exchange rates that affect certain existing U.S.
+Added: Dollar denominated assets and liabilities at our subsidiaries whose functional currency is the local currency.
+Added: Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses.
Fluctuations in currency exchange rates also impact the U.S.
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Income and expense accounts are translated at an average exchange rate during the year which approximates the rates in effect at the transaction dates.
−Removed: The resulting translation adjustments are recorded in stockholders’ equity as a component of accumulated other comprehensive income.
+Added: The resulting translation adjustments are recorded in stockholders’
+Added: equity as a component of accumulated other comprehensive income.
As a result of fluctuations in certain foreign currency exchange rates in relation to the U.S.
−Removed: Dollar as of December 28, 2019 compared to December 29, 2018, our stockholders’ equity decreased by $7.5 million as a result of the foreign currency translation.
+Added: Dollar as of December 26, 2020 compared to December 28, 2019, our stockholders’
+Added: equity increased by $27.3 million as a result of the foreign currency translation.
Based upon the current levels of net foreign assets, a hypothetical 10% devaluation of the U.S.
−Removed: dollar as compared to these currencies as of December 28, 2019 would result in an approximate $41.3 million positive translation adjustment recorded in other comprehensive income within stockholders’ equity.
+Added: dollar as compared to these currencies as of December 26, 2020 would result in an approximate $38.6 million positive translation adjustment recorded in other comprehensive income within stockholders’
Conversely, a hypothetical 10% appreciation of the U.S.
−Removed: dollar as compared to these currencies as of December 28, 2019 would result in an approximate $41.3 million negative translation adjustment recorded in other comprehensive income within stockholders’ equity.
+Added: dollar as compared to these currencies as of December 26, 2020 would result in an approximate $38.6 million negative translation adjustment recorded in other comprehensive income within stockholders’
Financial Statements and Supplementary Data.
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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.