QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: The total amount of short-term debt, net of cash, amounted to net debt of $536.7 million and net debt of $610.2 million, at April 3, 2022 and December 31, 2021, respectively.
−Removed: A hypothetical 100 basis point increase in interest rates applied to this variable-rate short-term debt as of April 3, 2022 would have changed interest expense by approximately $1.3 million for the first three months of 2022 and $2.4 million for 2021.
+Added: The total amount of short-term debt, net of cash, amounted to net debt of $575.2 million and net debt of $610.2 million, at July 3, 2022 and December 31, 2021, respectively.
+Added: A hypothetical 100 basis point increase in interest rates applied to this variable-rate short-term debt as of July 3, 2022 would have changed interest expense by approximately $2.8 million for the first six months of 2022 and $2.4 million for 2021.
We consider our current risk related to market fluctuations in interest rates on our remaining debt portfolio, excluding fixed-rate debt converted to variable rates with fixed-to-floating instruments, to be minimal since this debt is largely long-term and fixed-rate in nature.
Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise.
−Removed: A 100 basis point increase in market interest rates would decrease the fair value of our fixed-rate long-term debt at April 3, 2022 and December 31, 2021 by approximately $252 million and $319 million, respectively.
+Added: A 100 basis point increase in market interest rates would decrease the fair value of our fixed-rate long-term debt at July 3, 2022 and December 31, 2021 by approximately $258 million and $319 million, respectively.
However, since we currently have no plans to repurchase our outstanding fixed-rate instruments before their maturities, the impact of market interest rate fluctuations on our long-term debt does not affect our results of operations or financial position.
−Removed: The potential decline in fair value of foreign currency forward exchange contracts resulting from a hypothetical near-term adverse change in market rates of 10% was $26.7 million as of April 3, 2022 and $24.8 million as of December 31, 2021, generally offset by a reduction in foreign exchange associated with our transactional activities.
−Removed: Our open commodity derivative contracts had a notional value of $284.8 million as of April 3, 2022 and $313.2 million as of December 31, 2021.
+Added: The potential decline in fair value of foreign currency forward exchange contracts resulting from a hypothetical near-term adverse change in market rates of 10% was $44.8 million as of July 3, 2022 and $24.8 million as of December 31, 2021, generally offset by a reduction in foreign exchange associated with our transactional activities.
+Added: Our open commodity derivative contracts had a notional value of $479.4 million as of July 3, 2022 and $313.2 million as of December 31, 2021.
At the end of the first quarter 2022, the potential change in fair value of commodity derivative instruments, assuming a 10% decrease in the underlying commodity price, would have increased our net unrealized losses by $50.8 million, generally offset by a reduction in the cost of the underlying commodity purchases.
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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.