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 March 29, 2024.
−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 March 29, 2024, 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 June 28, 2024.
+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 June 28, 2024, 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.
5 unchanged sentences
The Company does not use commodity derivative instruments for trading or speculative purposes.
−Removed: The Company is also subject to commodity price risk arising from price movements for certain commodities included as part of its raw materials.
−Removed: The Company manages this commodity price risk in some cases by entering into contracts with adjustable prices to hedge commodity purchases.
−Removed: The Company periodically uses commodity derivative instruments in the management of this risk.
−Removed: The Company estimates a 10% increase in the market prices of commodities included as part of its raw materials over the current market prices would cumulatively increase costs during the next 12 months by approximately $70 million assuming no change in volume.
+Added: The Company is also subject to commodity price risk arising from price movements for certain commodities included as part of its input costs, which predominately relate to our Sparkling products.
+Added: The Company estimates a 10% increase in the market prices of input costs (which includes the underlying commodities) over the current market prices would cumulatively increase costs during the next 12 months by approximately $71 million assuming no change in volume.
+Added: The Company manages its commodity price risk in some cases by entering into contracts with adjustable prices to hedge commodity purchases, including our aluminum input costs and fuel expenses related to our selling and distribution activities.
+Added: The Company periodically uses commodity derivative instruments in the management of this risk, and estimates a 10% decrease in the underlying commodity prices would have decreased the fair value of our commodity derivative instruments by approximately $3 million as of June 28, 2024.
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 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 3.5% in March 2024, as compared to 3.4% in December 2023 and 6.5% in December 2022.
+Added: The Company accounts for its commodity derivative instruments on a mark-to-market basis with any expense or
+Added: 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 3.0% in June 2024, as compared to 3.4% in December 2023 and 6.5% in December 2022.
Inflation in the prices of those commodities important to the Company’s business is reflected in changes in the CPI.
The principal effect of inflation in both commodity and consumer prices on the Company’s operating results is to increase both cost of goods sold and SD&A expenses.
−Removed: Although the Company can offset these cost increases by increasing selling prices for its
−Removed: products, consumers may not have the buying power to cover these increased costs and may reduce their volume of purchases of those products.
+Added: Although the Company can offset these cost increases by increasing selling prices for its products, consumers may not have the buying power to cover these increased costs and may reduce their volume of purchases of those products.
In that event, selling price increases may not be sufficient to offset completely the Company’s cost increases.
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.