1 unchanged sentence
The Company is exposed to market risk from changes in interest rates, foreign exchange rates and commodity prices.
−Removed: Interest Rates Risk
−Removed: The Company made payments of $30.0 million on the amended revolving credit facility during the fiscal year 2021.
−Removed: The balance under the facility was $100.0 million as of January 1, 2022.
−Removed: With variable interest rates, the Company is subject to future interest rate fluctuations in relation to these borrowings which could potentially have a negative impact on cash flows of the Company.
+Added: Interest Rate Risk
+Added: On June 30, 2022, the Company amended and restated its Credit Agreement, dated as of April 3, 2020 to effect certain changes, including, among other changes:
+Added: (i) adding a $300 million unsecured term loan credit facility;
+Added: (ii) making certain financial and non-financial covenants less restrictive on the Company and its subsidiaries;
+Added: (iii) replacing LIBOR-based interest rate benchmarks and modifying performance-based interest rate margins;
+Added: and (iv) extending the maturity date to June 30, 2027 (the “Maturity Date”).
+Added: Pursuant to the Credit Agreement, the Company may, from time to time, increase the size of the revolving credit facility or enter into one or more tranches of term loans in minimum increments of $25 million if there is no event of default and the Company is in compliance with certain financial covenants.
+Added: The revolving loan and term loan balance under the Credit Facility was $100.0 million and $296.3 million, respectively, as of December 31, 2022.
+Added: On May 12, 2022, the Company entered into an interest rate swap agreement to manage interest rate risk exposure, effectively converting the interest rate on the Company's SOFR based floating-rate loans to a fixed-rate.
+Added: The interest rate swap, with a notional value of $200 million, was designated as a cash flow hedge against the variability of cash flows associated with the Company's SOFR based loans scheduled to mature on June 30, 2027.
+Added: The cash flow hedge reduces the Company exposure to future interest rate fluctuation.
+Added: For the remaining borrowings of $196.3 million, which represents approximately 20% of the Company's total debt, it is subject to future interest rate fluctuations which could potentially have a negative impact on the Company's cash flows.
A prospective increase of 100 basis points in the interest rate applicable to the Company’s outstanding borrowings under its credit facility would result in an increase of approximately $2.0 million in annual interest expense.
This exposure would be partially if not fully offset by higher interest income from the Company's investments.
−Removed: The Company is not party to any currency exchange or interest rate protection agreements as of January 1, 2022.
Foreign Exchange Rate Risk
The majority of the company’s operations consist of manufacturing and sales activities in foreign countries.
−Removed: The Company has operations in China, Germany, Mexico, Philippines, U.K., Japan, Lithuania, Netherlands, Portugal, Singapore, South Korea, Spain, and the U.S.
+Added: The Company has operations in China, France, Germany, India, Mexico, Philippines, U.K., Japan, Lithuania, Netherlands, Portugal, Singapore, South Korea, Spain, U.S., and Vietnam.
During 2022, sales to customers outside the U.S.
7 unchanged sentences
Changes in foreign exchange rates could affect the company’s sales, costs, balance sheet values and earnings.
−Removed: At January 1, 2022, the net value of the Company’s assets with exposure to foreign currency risk was approximately $148 million, with the largest exposure being a Japanese yen denominated inter-company loan with a Euro functional currency subsidiary.
−Removed: The reduction in earnings from a hypothetical instantaneous 10% adverse change in quot ed foreign currency spot rates applied to foreign currency sensitive asset instruments would be $15 million at January 1, 2022.
−Removed: At January 1, 2022, the net value of the Company’s liabilities with exposure to foreign currency risk was $389 million, with the largest exposure being U.S.
+Added: At December 31, 2022, the net value of the Company’s assets with exposure to foreign currency risk was approximately $198 million, with the largest exposure being a Euro denominated inter-company loan with a U.S.
+Added: Dollars functional currency subsidiary.
+Added: The reduction in earnings from a hypothetical instantaneous 10% adverse change in quot ed foreign currency spot rates applied to foreign currency sensitive asset instruments would be $20 million at December 31, 2022.
+Added: At December 31, 2022, the net value of the Company’s liabilities with exposure to foreign currency risk was $314 million, with the largest exposure being U.S.
Dollar denominated inter-company loans with a Euro functional currency subsidiary.
−Removed: The reduction in earnings from a hypothetical instantaneous 10% adverse change in quoted foreign currency spot rates applied to foreign currency sensitive liability instruments would be $39 million at January 1, 2022.
+Added: The reduction in earnings from a hypothetical instantaneous 10% adverse change in quoted foreign currency spot rates applied to foreign currency sensitive liability instruments would be $31 million at December 31, 2022.
As a result of th e mix in currencies impacting the hypothetical 10% changes, the movements in some instruments would offset movements in other instruments reducing the hypothetical exposure to the Company.
3 unchanged sentences
The Company believes it has adequate primary and secondary sources of supply for each of our key materials.
−Removed: While the Company is exposed to significant changes in certain metal prices and expects higher material costs, the Company actively monitors these exposures and may take various actions, including price increases and productivity improvements to mitigate any negative impacts of these exposures.
−Removed: Due to the continued impact from COVID-19, transportation costs increased significantly in 2021 and may further increase in 2022.
−Removed: The Company has taken and, in the future, may take further various actions, including price increases and changing freight modes or other alternative solutions to mitigate the impact of rising transportation costs.
+Added: While the Company is exposed to significant changes in certain metal prices and expects higher material costs, the Company actively monitors these exposures, has taken and may take various actions in the future, including price increases and productivity improvements to mitigate any negative impacts of these exposures.
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.