3 unchanged sentences
As of December 30, 2020, we had outstanding borrowings of $62.8 million related to our 2018 Revolver and another $8.4 million of letters of credit in support of our insurance programs, and the applicable margin on outstanding borrowings under 2018 Revolver was 1.5%.
−Removed: In addition, there is currently uncertainty around whether LIBOR will continue to exist after 2021.
−Removed: If LIBOR ceases to exist, we may need to enter into an amendment to the 2018 Credit Agreement and we cannot predict what alternative index would be negotiated with our lenders.
−Removed: If our lenders have increased costs due to changes in LIBOR, we may experience potential increases in interest rates on our variable rate debt, which could adversely impact our interest expense, results of operations and cash flows.
+Added: In addition, LIBOR is expected to be phased out beginning after 2021.
+Added: Organizations are currently working on industry wide and company specific transition plans as it relates to financial and other derivative contracts exposed to LIBOR.
+Added: When LIBOR ceases to exist, we may need to enter into an amendment to the 2018 Credit Agreement and we cannot predict what alternative index would be negotiated with our lenders.
+Added: If future rates based upon a successor rate are higher than LIBOR rates as currently determined or if our lenders have increased costs due to changes in LIBOR, we may experience potential increases in interest rates on our variable rate debt, which could adversely impact our interest expense, results of operations and cash flows.
After giving effect to the $40.0 million of interest rate swaps, we effectively had $22.8 million of long-term debt subject to variations in interest rates and a one percent increase in the variable rate of interest would increase annual interest expense by $0.2 million.
1 unchanged sentence
To balance our portfolio, we entered into an interest rate swap during the year ended December 25, 2019 with a notional amount of $40.0 million, related to the outstanding borrowings under our 2018 Revolver.
−Removed: The interest rate swap was designated as a cash flow hedge and effectively converted a portion of our outstanding borrowings to a fixed rate of 2.81%.
+Added: The interest rate swap was designated as a cash flow hedge and effectively converted a portion of our outstanding borrowings to a fixed rate of 1.31%, plus applicable margin, which is currently 1.5%.
The interest rate swap matures in June 2023.
1 unchanged sentence
We have a substantial number of hourly employees who are paid wage rates at or based on the applicable federal, state, or local minimum wage, and increases in the minimum wage will increase our labor costs.
−Removed: On January 1, 2018, the State of California (where most of our restaurants are located) minimum wage rose to $11.00 per hour, and on January 1, 2019 and on January 1, 2020, it was increased to $12.00 per hour and $13.00 per hour, respectively.
−Removed: We also do substantial business in locales such as the City of Los Angeles and the County of Los Angeles.
−Removed: On July 1, 2018 and July 1, 2019, the minimum wage in the City of Los Angeles increased to $13.25 per hour and $14.25 per hour, respectively.
−Removed: Starting July 1, 2020, the minimum wage in the City of Los Angeles will increase to $15.00 per hour.
−Removed: For details, see "Item 1A.
−Removed: Risk Factors—Risks Related to Our Business and Industry—If we or our franchisees face labor shortages or increased labor costs, our results of operations and growth could be adversely affected.” In general, we have been able to substantially offset cost increases resulting from inflation by increasing menu prices, managing menu mix, improving productivity, or making other adjustments.
+Added: In general, we have been able to substantially offset cost increases resulting from inflation by increasing menu prices, managing menu mix, improving productivity, or making other adjustments.
We may not be able to offset cost increases in the future.
7 unchanged sentences
At this time, we do not use financial instruments to hedge our commodity risk.
−Removed: See "Item 1A.
−Removed: Risk Factors—Risks Related to Our Business and Industry—Changes in food and supply costs, especially for chicken, could adversely affect our business, financial condition and results of operations,” and "Note 13.
−Removed: Commitments and Contingencies—Purchase Commitments" in our accompanying "Notes to Consolidated Financial Statements" included in this Annual Report.
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.