Quantitative and Qualitative Disclosures About Market Risk.
−Removed: The Company is subject to interest rate risk on its revolving credit facility and did not have any outstanding borrowings on its revolving credit facility as of July 1, 2022.
−Removed: As such, assuming no changes in the Company’s capital structure, if market interest rates average 1% more over the next 12 months than the interest rates as of July 1, 2022, there would be no change to interest expense for the next 12 months.
+Added: The Company is subject to interest rate risk on its revolving credit facility and did not have any outstanding borrowings on its revolving credit facility as of September 30, 2022.
+Added: As such, assuming no changes in the Company’s capital structure, if market interest rates average 1% more over the next 12 months than the interest rates as of September 30, 2022, there would be no change to interest expense for the next 12 months.
The Company’s acquisition related contingent consideration liability, which is adjusted to fair value each reporting period, is also impacted by changes in interest rates.
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Fees paid by the Company for agreements to hedge commodity purchases are amortized over the corresponding period of the agreement.
−Removed: The Company accounts for its commodity derivative instruments on a mark-to-market basis with any expense or
−Removed: income being reflected as an adjustment to cost of sales or SD&A expenses, consistent with the expense classification of the underlying hedged item.
−Removed: The rate of inflation in the United States, as measured by year-over-year changes in the Consumer Price Index (the “CPI”), was 9.1% in June 2022, as compared to 7.0% in December 2021 and 1.4% in December 2020.
+Added: The Company accounts for its commodity derivative instruments on a mark-to-market basis with any expense or income being reflected as an adjustment to cost of sales or SD&A expenses, consistent with the expense classification of the underlying hedged item.
+Added: The rate of inflation in the United States, as measured by year-over-year changes in the Consumer Price Index (the “CPI”), was 8.2% in September 2022, as compared to 7.0% in December 2021 and 1.4% in December 2020.
Inflation in the prices of those commodities important to the Company’s business is reflected in changes in the CPI, but commodity prices are volatile and in recent years have moved at a faster rate of change than the CPI.
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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.