1 unchanged sentence
(in thousands)
−Removed: Our cash flows and earnings are subject to fluctuations resulting from changes in foreign currency exchange rates and interest rates.
+Added: Our cash flows and earnings are subject to fluctuations resulting from changes in foreign currency exchange rates, interest rates and commodity prices.
We manage our exposure to these market risks through internally established policies and procedures and, when deemed appropriate, through the use of derivative financial instruments.
6 unchanged sentences
As of December 31, 2021, we had interest rate swaps that fix interest costs on $50,000 of our long-term debt through February 2024.
+Added: A 100bps change in interest rates would not impact our total interest expense.
Foreign Currency Risk
1 unchanged sentence
Our significant foreign subsidiaries are located in China, Czech Republic, Mexico, and Taiwan.
+Added: During 2021, net sales from outside the U.S.
+Added: were approximately 42% of total net sales.
+Added: During 2020, net sales to customers from outside the U.S.
+Added: were approximately 43% of total net sales.
+Added: The company’s foreign exchange exposures result primarily from, sale of products in foreign currencies, foreign currency denominated purchases, and employee-related and other costs of running operations in foreign countries.
+Added: Changes in foreign exchange rates could affect the company’s sales, costs, balance sheet values and earnings.
As of December 31, 2021, we had foreign currency forward contracts outstanding with a notional value of $18,017 to hedge our exposure against the Mexican Peso.
1 unchanged sentence
Many of our products require the use of raw materials that are produced in only a limited number of regions around the world or are available from only a limited number of suppliers.
−Removed: Our results of operations may be materially and adversely affected if we have difficulty obtaining these raw materials, the quality of available raw materials deteriorates, or there are significant price increases for
−Removed: CTS CORPORATION 24
−Removed: these raw materials.
+Added: Our results of operations may be materially and adversely affected if we have difficulty obtaining these raw materials, the quality of available raw materials deteriorates, or there are significant price increases for these raw materials.
For periods in which the prices of these raw materials are rising, we may be unable to pass on the increased cost to our customers, which would result in decreased margins for the products in which they are used.
For periods in which the prices are declining, we may be required to write down our inventory carrying cost of these raw materials, since we record our inventory at the lower of cost or net realizable value.
−Removed: Public Health Risk
−Removed: The COVID-19 outbreak is adversely affecting our business.
−Removed: We and some of our suppliers and customers have facilities that were required to remain closed for a period of time, and when permitted to reopen, employees have been limited in their ability to return to work due to governmental restrictions.
−Removed: The consequences of the outbreak, and the actions taken to limit its spread, have adversely affected our sales and results of operations in 2020 and could impact our results in 2021, and possibly longer if coronavirus consequences continue.
+Added: Due to the impact from the COVID-19 pandemic, freight costs increased significantly in 2021.
+Added: While the Company is exposed to significant changes in certain commodity prices and expects higher freight costs for most of 2022, the Company actively monitors these exposures and may take various actions from time to time to mitigate any negative impacts relating thereto.
CTS CORPORATION 25
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.