1 unchanged sentence
For a discussion of market risks that could affect the Company, refer to the risk factors disclosed in Item 1A.
−Removed: of Part 1 of the Company’s annual report on Form 10-K for the year ended March 29, 2020.
+Added: of Part 1 of the Company’s annual report on Form 10-K for the year ended March 28, 2021.
INTEREST RATE RISK
−Removed: Although the Company could have an exposure to interest rate risk related to its floating rate debt, there was no balance outstanding on its floating rate debt as of December 27, 2020.
+Added: Although the Company could have an exposure to interest rate risk related to its floating rate debt, there was no balance outstanding on its floating rate debt as of June 27, 2021.
COMMODITY RATE RISK
The Company sources its products primarily from foreign contract manufacturers, with the largest concentration being in China.
−Removed: The Company’s exposure to commodity price risk primarily relates to changes in the prices in China of cotton, oil and labor, which are the principal inputs used in a substantial number of the Company’s products.
+Added: The Company’s exposure to commodity price risk primarily relates to changes in the prices in China of cotton, oil and labor, which are the principal inputs used in a substantial number of the Company’s products.
In addition, although the Company pays its Chinese suppliers in U.S.
dollars, an arbitrary strengthening of the rate of the Chinese currency versus the U.S.
−Removed: dollar could result in an increase in the cost of the Company’s finished goods.
−Removed: There is no assurance that the Company could timely respond to such increases by proportionately increasing the prices at which its products are sold to the Company’s customers.
+Added: dollar could result in an increase in the cost of the Company’s finished goods.
+Added: There is no assurance that the Company could timely respond to such increases by proportionately increasing the prices at which its products are sold to the Company’s customers.
MARKET CONCENTRATION RISK
−Removed: The Company’s financial results are closely tied to sales to its top two customers, which represented approximately 62% of the Company’s gross sales in fiscal year 2020.
−Removed: In addition, 40% of the Company’s gross sales in fiscal year 2020 consisted of licensed products, which included 30% of sales associated with the Company’s license agreements with affiliated companies of the Walt Disney Company.
−Removed: The Company’s results could be materially impacted by the loss of one or more of these licenses.
+Added: The Company’s financial results are closely tied to sales to its top two customers, which represented approximately 68% of the Company’s gross sales in fiscal year 2021.
+Added: In addition, 41% of the Company’s gross sales in fiscal year 2021 consisted of licensed products, which included 34% of sales associated with the Company’s license agreements with affiliated companies of the Walt Disney Company.
+Added: The Company’s results could be materially impacted by the loss of one or more of these licenses.
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.