Quantitative and Qualitative Disclosures about Market Risk
−Removed: Interest Rate Risk
−Removed: Our exposure to market risk includes interest rate fluctuations
−Removed: in connection with our JPMorgan ABL Facility (see Note 5 – Credit Facilities).
−Removed: Borrowings under our JPMorgan ABL Facility bear interest
−Removed: at either (i) SOFR plus 1.50% - 2.00% (determined by reference to an excess availability pricing grid) or (ii) Alternate Base Rate plus
−Removed: 0.50% - 1.00% (determined by reference to an excess availability pricing grid and base rate subject to a 1.00% floor).
−Removed: Borrowings under
−Removed: the JPMorgan ABL Facility are therefore subject to risk based upon prevailing market interest rates.
−Removed: Interest rate risk may result from
−Removed: many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other
−Removed: factors that are beyond our control.
−Removed: Foreign Currency Risk
−Removed: We have wholly-owned subsidiaries in Hong Kong, China,
−Removed: the United Kingdom, Germany, France, the Netherlands, Italy, Canada and Mexico.
−Removed: Sales are generally made by these operations on FOB China
−Removed: or Hong Kong terms and are denominated in U.S.
−Removed: However, purchases of inventory and Hong Kong operating expenses are typically
−Removed: denominated in Hong Kong dollars and local operating expenses in the United Kingdom, Germany, France, the Netherlands, Italy, Canada,
−Removed: Mexico and China are denominated in local currency, thereby creating exposure to changes in exchange rates.
+Added: Our exposure to market risk includes interest rate
+Added: fluctuations in connection with our Revolving Facility (see Note 5 – Credit Facilities).
+Added: As detailed in the BMO Credit Agreement,
+Added: borrowings under the Revolving Facility bear interest, at the Company’s election, at either (i) the Adjusted Term SOFR plus an applicable
+Added: margin or (ii) the Base Rate plus an applicable margin.
+Added: The applicable margin varies based on the Company’s Total Net Leverage Ratio
+Added: and ranges from 1.50% to 2.00% for SOFR loans and from 0.50% to 1.00% for Base Rate loans.
+Added: Borrowings under the Revolving Facility are
+Added: therefore subject to risk based upon prevailing market interest rates.
+Added: Interest rate risk may result from many factors, including governmental
+Added: monetary and tax policies, domestic and international economic and political considerations and other factors that are beyond our control.
+Added: Currency Risk
+Added: have wholly-owned subsidiaries in Hong Kong, China, the United Kingdom, Germany, France, the Netherlands, Italy, Canada and Mexico.
+Added: are generally made by these operations on FOB China or Hong Kong terms and are denominated in U.S.
+Added: However, purchases of inventory
+Added: and Hong Kong operating expenses are typically denominated in Hong Kong dollars and local operating expenses in the United Kingdom, Germany,
+Added: France, the Netherlands, Italy, Canada, Mexico and China are denominated in local currency, thereby creating exposure to changes in exchange
Changes in the U.S.
−Removed: exchange rates may positively or negatively affect our results of operations.
−Removed: We do not believe that near-term changes in these exchange
−Removed: rates, if any, will result in a material effect on our future earnings, fair values or cash flows.
−Removed: Therefore, we have chosen not to enter
−Removed: into foreign currency hedging transactions.
−Removed: We cannot assure you that this approach will be successful, especially in the event of a significant
−Removed: and sudden change in the value of these foreign currencies.
+Added: dollar exchange rates may positively or negatively affect our results of operations.
+Added: We do not believe that
+Added: near-term changes in these exchange rates, if any, will result in a material effect on our future earnings, fair values or cash flows.
+Added: Therefore, we have chosen not to enter into foreign currency hedging transactions.
+Added: We cannot assure you that this approach will be successful,
+Added: especially in the event of a significant and sudden change in the value of these foreign currencies.
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.