2 unchanged sentences
Our primary market risk has been interest rate, foreign currency and inflation risk.
+Added: We do not have material exposure to commodity risk.
Interest Rate Risk
We are exposed to interest rate risk through our variable rate debt.
−Removed: As of December 31, 2021, we had $125.0 million of debt subject to variable interest rates that are based on London interbank offered rate (“LIBOR”) or an alternate base rate.
−Removed: If these rates were to increase above their respective floors, 1% for LIBOR or 2% for an alternate base rate, by 100 basis points, our interest expense on the variable-rate debt would increase by an average of $1.2 million annually.
+Added: As of December 31, 2022, we had $124 million of debt under the Term Loan subject to variable interest rates that are based on LIBOR or an alternate base rate.
+Added: Refer to Part I, Item 1, Financial Statements, Note 10 - Debt for details relating to the debt.
+Added: If these rates were to increase by 100 basis points from the rates in effect as of December 31, 2022, our interest expense on the variable rate debt would increase by an average of $1.2 million annually.
+Added: There are inherent limitations in the sensitivity analysis presented, primarily due to the assumptions that interest rate changes would be instantaneous, while LIBOR changes regularly.
We do not currently hedge our interest rate risks, but may determine to do so in the future.
−Removed: See Risk Factors — Uncertainty relating to the LIBOR and the potential discontinuation of LIBOR in the future may adversely affect our interest expense .
+Added: See Risk Factors — We may be adversely impacted by the transition from the London interbank offered rate (“LIBOR”) to the Secured Overnight Funding Rate ("SOFR") as a reference rate.
Foreign Currency Risk
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Therefore, our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, principally the CAD.
−Removed: However, we believe that the exposure to foreign currency fluctuation from product sales and operating expenses is not significant at this time as the related product sales and costs do not constitute a significant portion of our total net sales and expenses.
−Removed: As we grow and expand the geographic reach of our operations, our exposure to foreign currency risk could become more significant.
+Added: We are impacted by changes in foreign currency exchange rates when we sell product in currencies different from the currency in which costs were incurred.
+Added: The functional currencies and our purchasing and sales activities primarily include USD, CAD and Euro.
+Added: As these currencies fluctuate against each other, and other currencies, we are exposed to foreign currency exchange rate risk on sales, purchasing transactions, and labor.
To date, we have not entered into any foreign currency exchange contracts and currently do not expect to enter into foreign currency exchange contracts for trading or speculative purposes.
−Removed: Impact of Inflation
−Removed: Our results of operations and financial condition are presented based on historical costs.
−Removed: Inflation affects our manufacturing costs, distribution costs and operating expenses.
−Removed: We believe that volatile prices for commodities have impacted our net sales and results of operations.
−Removed: We maintain strategies to mitigate the impact of higher raw material, energy and commodity costs, which include cost reduction, sourcing, passing along certain cost increases to customers and other actions, which may offset only a portion of the adverse impact.
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.