Quantitative and Qualitative Disclosures About Market Risk.
−Removed: In the normal course of business, we are exposed to a variety of risks, including fluctuations in interest rates that could affect our financial position and results of operations.
−Removed: Interest rate risk exists primarily through our borrowing activities.
−Removed: dollar denominated borrowings to fund our working capital and investment needs.
−Removed: It is anticipated that the fair market value of any future debt under the line of credit will continue to be immaterially affected by fluctuations in interest rates and we do not believe that the value of such debt would be significantly impacted by current market events.
−Removed: Under the line of credit, the Company may elect that revolving loans bear interest at a rate per annum equal to the base rate plus the applicable margin or the LIBOR rate plus the applicable margin.
−Removed: The applicable margin is based on tier’s relating to the quarterly average excess availability.
−Removed: The tiers range from 2.00% to 2.25%.
−Removed: We currently do not engage in any interest rate hedging activity and we have no intention of doing so in the foreseeable future.
−Removed: A hypothetical 100 basis point change (up or down) in the one-month LIBOR rate would not have a material effect on our consolidated results of operations.
−Removed: LIBOR Transition
−Removed: Borrowings under our revolving line of credit have an interest rate tied to LIBOR, which is the subject of recent national, international, and other regulatory guidance and proposals for reform.
−Removed: These reforms and other pressure may cause LIBOR to disappear entirely or to perform differently than in the past.
−Removed: It is expected that certain banks will stop reporting information used to set LIBOR at the end of 2021 when their reporting obligations cease.
−Removed: This will effectively end the usefulness of LIBOR and end its publication.
−Removed: If LIBOR is no longer available, or otherwise at our option, we will pursue alternative interest rate calculations in our Credit Agreement, including the use of the Secured Overnight Financing Rate (SOFR).
−Removed: A number of other alternatives to LIBOR have been proposed or are being developed, but it is not clear which, if any, will be adopted.
−Removed: Any of these alternative methods may result in interest payments that are higher than expected or that do not otherwise correlate over time with the payments that would have been made on such indebtedness for the interest periods if the applicable LIBOR rate was available in its current form.
+Added: In the normal course of business, we are exposed to a variety of market risks, including fluctuations in interest rates and inflation that could affect our financial position and results of operations.
+Added: Interest Rate Risk
+Added: Cash and cash equivalents and short-term investments were held primarily in cash deposits, certificates of deposit, money market funds and investment grade corporate debt.
+Added: The fair value of our cash, cash equivalents and short-term investments will fluctuate with movements of interest rates, increasing in periods of declining rates of interest and declining in periods of increasing rates of interest.
+Added: Interest on the revolving line of credit incurred pursuant to the credit agreements described herein would accrue at a floating rate based on a formula tied to certain market rates at the time of occurrence;
+Added: however, we do not expect that any changes in prevailing interest rates will have a material impact on our results of operations.
+Added: In fiscal year 2023, we saw inflationary pressures across various parts of our business and operations, including, but not limited to, wholesale cost inflation and rising costs across our supply chain.
+Added: We continue to monitor the impact of inflation in order to minimize its effects through pricing strategies, productivity improvements and cost reductions.
+Added: If our costs were to be subject to more significant inflationary pressures, we may not be able to fully offset such higher costs through price increases or other cost efficiency measures.
+Added: Our inability or failure to do so could harm our business, financial condition and results of operations.
Financial Statements and Supplementary Data.
2 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.