1 unchanged sentence
Interest Rate Risk
−Removed: We had cash, cash equivalents, and short-term investments totaling $442.8 million and $437.3 million as of December 27, 2019 and June 28, 2019, respectively.
+Added: We had cash, cash equivalents, and short-term investments totaling $457.8 million and $437.3 million as of March 27, 2020 and June 28, 2019, respectively.
We have interest rate risk exposure relating to the interest income generated by excess cash invested in highly liquid investments with maturities of three months or less from the original dates of purchase.
3 unchanged sentences
Declines in interest rates, however, will reduce future investment income.
−Removed: If overall interest rates had declined by 10 basis points during the six months ended December 27, 2019 and December 28, 2018, our interest income would have decreased by approximately $0.2 million in each of the respective periods, assuming consistent investment levels.
+Added: If overall interest rates had declined by 10 basis points during the nine months ended March 27, 2020 and March 29, 2019, our interest income would have decreased by approximately $0.3 million in each of the respective periods, assuming consistent investment levels.
We also have interest rate risk exposure in movements in interest rates associated with our interest-bearing liabilities.
1 unchanged sentence
dollars and the interest expense is based on the London Inter-Bank Offered Rate (“LIBOR”), plus an additional margin, depending on the lending institution.
−Removed: If the LIBOR had increased by 100 basis points during the six months ended December 27, 2019 and December 28, 2018, our interest expense would have increased by approximately $0.1 million and $0.2 million, respectively, assuming consistent borrowing levels.
+Added: If the LIBOR had increased by 100 basis points during the nine months ended March 27, 2020 and March 29, 2019, our interest expense would have increased by approximately $0.1 million and $0.2 million, respectively, assuming consistent borrowing levels.
We therefore entered into interest rate swap agreements (the “Swap Agreements”) to manage this risk and increase the profile of the Company’s debt obligation.
The terms of the Swap Agreements allow the Company to effectively convert the floating interest rate to a fixed interest rate.
−Removed: This locks the variable in interest expenses associated with our floating rate borrowings and results in fixed interest expenses which is unsusceptible from market rate increase.
+Added: This locks the variable in interest expenses associated with our floating rate borrowings and results in fixed interest expenses, which is unsusceptible to market rate increase.
We designated the Swap Agreements as a cash flow hedge, and they qualify for hedge accounting because the hedges are highly effective.
21 unchanged sentences
Consequently, increases and decreases in the value of the U.S.
−Removed: dollar compared with such foreign currencies will affect our reported results of operations and the value of our assets and liabilities on our unaudited condensed consolidated balance sheets, even if our results of operations or the value of those assets and liabilities has not changed in its original currency.
+Added: dollar compared with such foreign currencies will affect our reported results of operations and the value of our assets and liabilities on our unaudited condensed consolidated balance sheets, even if our results of operations or the value
+Added: of those assets and liabilities has not changed in its original currency.
These transactions could significantly affect the comparability of our results between financial periods or result in significant changes to the carrying value of our assets, liabilities and shareholders’ equity.
We attempt to hedge against these exchange rate risks by entering into derivative instruments that are typically one to eighteen months in duration, leaving us exposed to longer term changes in exchange rates.
−Removed: We recorded unrealized loss of $1.9 million and unrealized gain of $2.6 million related to derivatives that are not designated as hedging instruments, for the six months ended December 27, 2019 and December 28, 2018, respectively.
+Added: We designated the foreign currency forward contracts used to hedge fluctuations in the U.S.
+Added: dollar value of forecasted transactions denominated in Thai baht as cash flow hedges, as they qualified for hedge accounting because the hedges are highly effective.
+Added: While we intend to continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective, the changes in the fair value of the derivatives used as hedges would be reflected in our earnings.
+Added: From March 27, 2020, any gains or losses related to these outstanding foreign currency forward contracts will be recorded in accumulated other comprehensive income in the unaudited condensed consolidated balance sheets, with subsequent reclassification to the same statement of operations and comprehensive income line item as the earnings effect of hedge items when settled.
+Added: We recorded unrealized loss of $4.0 million and unrealized gain of $1.5 million for the nine months ended March 27, 2020 and March 29, 2019, respectively, related to derivatives that are not designated as hedging instruments.
As foreign currency exchange rates fluctuate relative to the U.S.
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For example, a 10% weakening in the U.S.
−Removed: dollar against the Thai baht, the RMB and the GBP would have resulted in a decrease in our net dollar position of approximately $3.1 million and $0.4 million as of December 27, 2019 and June 28, 2019, respectively.
+Added: dollar against the Thai baht, the RMB and the GBP would have resulted in a decrease in our net dollar position of approximately $1.1 million and $0.4 million as of March 27, 2020 and June 28, 2019, respectively.
We cannot give any assurance as to the effect that future changes in foreign currency rates will have on our unaudited condensed consolidated financial position, operating results or cash flows.
Credit risk refers to our exposures to financial institutions, suppliers and customers that have in the past and may in the future experience financial difficulty, particularly in light of recent conditions in the credit markets and the global economy.
−Removed: As of December 27, 2019, our cash and cash equivalents were held in deposits and highly liquid investment products with maturities of three months or less with banks and other financial institutions having credit ratings of A minus or above.
−Removed: Our short-term investments as of December 27, 2019 are held in various financial institutions with a maturity limit not to exceed three years, and all securities are rated A1, P-1,
+Added: As of March 27, 2020, our cash and cash equivalents were held in deposits and highly liquid investment products with maturities of three months or less with banks and other financial institutions having credit ratings of A minus or above.
+Added: Our short-term investments as of March 27, 2020 are held in various financial institutions with a maturity limit not to exceed three years, and all securities are rated A1, P-1,
F1 or better.
We continue to monitor our surplus cash and consider investment in corporate and U.S.
−Removed: government debt as well as certain available-for-sale securities in accordance with our investment policy.
+Added: government debt as well as certain available-for-sale
+Added: securities in accordance with our investment policy.
We generally monitor the financial performance of our suppliers and customers, as well as other factors that may affect their access to capital and liquidity.
1 unchanged sentence
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.