Quantitative and Qualitative Disclosures About Market Risk
−Removed: Market risk represents the risk of loss that may impact the consolidated financial position, results of operations or cash flows of the Company.
+Added: Market risk represents the risk of loss that may have an impact on the consolidated financial position, results of operations or cash flows of the Company.
The Company is exposed to market risk associated with changes in interest rates and foreign currency exchange rates.
2 unchanged sentences
The Company’s functional currency is the U.S.
−Removed: The Company has foreign operations through its acquisitions, investments and strategic alliances in the U.K., Netherlands, Mexico, Canada, Australia, New Zealand, Hong Kong and China;
−Removed: therefore, the Company is subject to increases and decreases in its investments resulting from the impact of fluctuations in foreign currency exchange rates.
+Added: The Company has foreign operations through its acquisitions, investments and strategic alliances in the U.K., the Netherlands, Mexico, Canada, Australia, New Zealand, Hong Kong and China;
+Added: therefore, the Company is subject to increases and decreases value of its net investments due to fluctuations in foreign currency exchange rates.
Additional transactions exposing the Company to exchange rate risk include sales, certain inventory purchases and operating expenses.
−Removed: Through its subsidiaries, portions of the Company’s cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies.
+Added: Through its subsidiaries, portions of the Company’s cash, trade accounts receivable, trade accounts payable are denominated in foreign currencies.
+Added: In addition, certain ABL borrowings held by the Company’s international subsidiaries are denominated in U.S.
+Added: Dollar, which subjects the outstanding principal to fluctuations in exchange rates.
For the year ended December 31, 2025, approximately 8% of the Company’s net sales revenue was in foreign currencies, compared to 7% for the year ended December 31, 2024.
These sales were primarily denominated in U.K.
−Removed: pounds, Euros and Canadian dollars.
+Added: pounds, Euros, Canadian dollars and Australian dollars.
The Company makes most of its inventory purchases from Asia and uses the U.S.
6 unchanged sentences
The Company purchases foreign currency forward contracts with terms less than 18 months.
−Removed: The aggregate gross notional values of foreign exchange contracts at December 31, 2024 and 2023 was $8.0 million and $9.8 million, respectively.
+Added: The aggregate gross notional value of foreign exchange contracts at December 31, 2025 and 2024 were zero and $8.0 million, respectively.
The Company’s ABL Agreement and Term Loan bear interest at variable rates.
1 unchanged sentence
therefore, the Company is subject to increases and decreases in interest expense resulting from fluctuations in interest rates.
−Removed: The Company entered into interest rate swap agreements in June 2019, March 2024, and October 2024, to manage interest rate exposure in connection with its variable interest rate borrowings with an aggregate notional value of $75.0 million at December 31, 2024.
+Added: The Company entered into interest rate swap agreements in June 2019, March 2024, and October 2024, to manage interest rate exposure in connection with its variable interest rate borrowings with an
+Added: aggregate notional value of $50.0 million at December 31, 2025.
As of December 31, 2025, approximately $139.1 million of the Company’s debt carries a variable rate of interest, as compared to $110.2 million at December 31, 2024.
10 unchanged sentences
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.