3 unchanged sentences
We enter into foreign currency forward contracts to manage our foreign currency exposure to the fluctuations of certain foreign currencies.
−Removed: The use of these instruments primarily helps manage our exposure to foreign purchase commitments and better control product costs.
+Added: The use of these instruments primarily helps manage our exposure to foreign denominated purchase commitments and better control product costs.
We do not use derivatives for trading or speculative purposes.
5 unchanged sentences
Certain of these contracts are designated as hedges for hedge accounting purposes, while certain of these contracts are not designated as hedges for accounting purposes.
−Removed: Accordingly, the changes in the fair value of the majority of these contracts at the balance sheet date are recorded in equity as a component of accumulated other comprehensive income, and upon maturity (settlement) are recorded in, or reclassified into, our cost of goods sold, in our consolidated statements of operations and comprehensive income, as applicable to the transactions for which the forward foreign currency exchange contracts were established.
+Added: Accordingly, the changes in the fair value of the majority of these contracts at the balance sheet date are recorded in equity as a component of accumulated other comprehensive (loss) income and upon maturity (settlement) are recorded in, or reclassified into, our cost of goods sold in our consolidated statements of operations and comprehensive income as applicable to the transactions for which the forward foreign currency exchange contracts were established.
We perform a sensitivity analysis on our forward currency contracts, both designated and not designated as hedges for accounting purposes, to determine the effects of fluctuations in foreign currency exchange rates.
1 unchanged sentence
Dollar against foreign exchange rates.
−Removed: Based on all foreign currency exchange contracts outstanding as of July 2, 2022, a 10% appreciation or devaluation of the U.S.
−Removed: Dollar compared to the level of foreign currency exchange rates for currencies under contract as of July 2, 2022, would result in a net increase and decrease, respectively, of approximately $10 million in the fair value of these contracts.
+Added: Based on all foreign currency exchange contracts outstanding as of October 1, 2022, a 10% appreciation or devaluation of the U.S.
+Added: Dollar compared to the level of foreign currency exchange rates for currencies under contract as of October 1, 2022, would result in a net increase and decrease, respectively, of approximately $6 million in the fair value of these contracts.
Net Investment Hedges
We are exposed to adverse foreign currency exchange rate movements related to our net investment hedges.
−Removed: As of July 2, 2022, we have multiple fixed to fixed cross-currency swap agreements with aggregate notional amounts of $4 billion to hedge our net investment in Euro-denominated subsidiaries and $194 million to hedge our net investments in Japanese Yen-denominated subsidiaries against future volatility in the exchange rates between the U.S.
−Removed: Dollar and these currencies.
−Removed: Under the term of these contracts, we will exchange the semi-annual fixed rate payments on United States denominated debt for fixed rate payments of 0% to 2.872% in Euros and 1.061% to 2.858% in Japanese Yen.
−Removed: Based on the net investment hedges outstanding as of July 2, 2022, a 10% appreciation or devaluation of the U.S.
−Removed: Dollar compared to the level of foreign currency exchange rates for currencies under contract as of July 2, 2022, would result in a net increase or decrease, respectively, of approximately $394 million in the fair value of these contracts.
−Removed: These contracts have maturity dates between March 2024 and February 2051.
−Removed: In addition, certain other contracts are supported by a credit support annex (“CSA”) which provides for collateral exchange with the earliest effective date being May 2027.
+Added: As of October 1, 2022, we have multiple fixed to fixed cross-currency swap agreements with aggregate notional amounts of $294 million to hedge our net investments in Japanese Yen denominated subsidiaries against future volatility in the exchange rates between the U.S.
+Added: Dollar and the Japanese Yen.
+Added: As of October 1, 2022, the Company did not have any notional amounts hedged in relation to its net investment in Euro denominated subsidiaries.
+Added: Under the term of these contracts, we will exchange the semi-annual fixed rate payments on United States denominated debt for fixed rate payments of 0% to 2.665% in Japanese Yen.
+Added: Based on the net investment hedges outstanding as of October 1, 2022, a 10% appreciation or devaluation of the U.S.
+Added: Dollar compared to the level of foreign currency exchange rates for currencies under contract as of October 1, 2022, would result in a net increase or decrease, respectively, of approximately $35 million in the fair value of these contracts.
+Added: These contracts have maturity dates between May 2027 and February 2051.
+Added: In addition, certain other contracts are supported by a credit support annex (“CSA”) which provides for collateral exchange with the earliest effective date being September 2027.
If the outstanding position of a contract exceeds a certain threshold governed by the aforementioned CSA’s, either party is required to post cash collateral.
7 unchanged sentences
Therefore, our consolidated statements of operations and comprehensive income and cash flows are exposed to changes in those interest rates.
−Removed: At July 2, 2022, we had $922 million borrowings outstanding under our 2022 Credit Facility and no borrowings outstanding under our Versace Credit Facilities.
−Removed: At April 2, 2022, we had $175 million borrowings outstanding under our 2018 Credit Facility, $495 million, net of debt issuance costs, outstanding under our 2018 Term Loan Facility and no borrowings outstanding under our Versace Credit Facilities.
−Removed: These balances are not indicative of
−Removed: future balances that may be outstanding under our revolving credit facilities that may be subject to fluctuations in interest rates.
−Removed: Any increases in the applicable interest rate(s) would cause an increase to the interest expense relative to any outstanding balance at that date.
−Removed: As of July 2, 2022, our $450 million Senior Notes, due in 2024, bear interest at a fixed rate equal to 4.250% per year, payable semi-annually.
+Added: At October 1, 2022, we had $1,126 million borrowings outstanding under our 2022 Credit Facility and no borrowings outstanding under our Versace Credit Facilities.
+Added: At April 2, 2022, we had $175 million borrowings outstanding under our 2018 Credit Facility, $495 million, net of debt issuance costs, outstanding under our 2018
+Added: Term Loan Facility and no borrowings outstanding under our Versace Credit Facilities.
+Added: These balances are not indicative of future balances that may be outstanding under our revolving credit facilities that may be subject to fluctuations in interest rates.
+Added: Any increases in the applicable interest rates would cause an increase to the interest expense relative to any outstanding balance at that date.
+Added: As of October 1, 2022, our $450 million Senior Notes, due in 2024, bear interest at a fixed rate equal to 4.250% per year, payable semi-annually.
Our Senior Notes interest rate payable may be subject to adjustments from time to time if either Moody’s or S&P (or a substitute rating agency), downgrades (or downgrades and subsequently upgrades) the credit rating assigned to the Senior Notes.
On an overall basis, our exposure to market risk has not significantly changed from what we reported in our Annual Report on Form 10-K.
−Removed: The COVID-19 pandemic does present new and emerging uncertainty to the financial markets.
+Added: The ongoing COVID-19 pandemic as well as macroeconomic conditions and inflationary pressures do present new and emerging uncertainty to the financial markets.
“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended April 2, 2022 for additional information.
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.