4 unchanged sentences
Interest Rate Risk
−Removed: As of April 1, 2022, we were not subject to significant exposure to changes in short term interest rates, as we did not have any outstanding debt relating to the credit facilities in place.
−Removed: The Company entered into credit facilities on April 4, 2022.
−Removed: Please refer to Note 14, “Subsequent Events” in our Notes to Combined Condensed Financial Statements included in this Form 10-Q for additional information regarding our credit facilities.
+Added: The Company entered into certain credit facilities pursuant to the terms of a credit agreement on April 4, 2022.
+Added: Please refer to Note 10, “Debt” in our Notes included in this Form 10-Q for additional information regarding our credit facilities.
We are exposed to interest rate risk on the new variable-rate term loans under these facilities.
+Added: A hypothetical increase in interest rates of 1% during the three months ended July 1, 2022 would have increased interest expense by approximately $3.0 million.
+Added: In order to mitigate our interest risk, in July 2022, we entered into interest rate swaps to hedge approximately $600 million of our variable interest rate debt.
+Added: See Note 15, “Subsequent Events” in our Notes included in this Form 10-Q for additional information.
Exchange Rate Risk
2 unchanged sentences
dollar and against the currencies of other countries in which we manufacture and sell products and services.
−Removed: During the three months ended April 1, 2022, approximat ely 77.8% of our sales were derived from operations outside the U.S.
+Added: During the six months ended July 1, 2022, approximat ely 77.6% of our sales were derived from operations outside the U.S.
We have significant manufacturing operations in European countries that are not part of the Eurozone.
6 unchanged sentences
A 10% depreciation in major currencies relative to the U.S.
−Removed: dollar as of April 1, 2022, would result in a reduction in Equity of approximately $162 million .
+Added: dollar as of July 1, 2022, would result in a reduction in Equity of approximately $174 million.
+Added: In July 2022, we entered into two fixed-to-fixed cross-currency swaps which will provide a hedge to a portion of our European net asset position.
+Added: See Note 15, “Subsequent Events” in our Notes to Consolidated and Combined Condensed Financial Statements included in this Form 10-Q for additional information.
We also face exchange rate risk from intercompany transactions between affiliates.
9 unchanged sentences
In order to manage commodity price risk, we periodically enter into fixed price contracts directly with suppliers.
−Removed: See Note 10, “Financial Instruments and Fair Value Measurements” in our Notes to Combined Condensed Financial Statements included in this Form 10-Q for additional information regarding our derivative instruments.
+Added: See Note 11, “Financial Instruments and Fair Value Measurements” in our Notes included in this Form 10-Q for additional information regarding our derivative instruments.
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.