1 unchanged sentence
Foreign Currency Exchange Risk .
−Removed: The functional currency of our foreign subsidiaries is generally the applicable local currency.
+Added: The functional currency of our international subsidiaries is generally the applicable local currency.
Our consolidated financial statements are presented in U.S.
−Removed: Therefore, the net revenue, expenses, assets, and liabilities of our foreign subsidiaries are translated from their functional currencies into U.S.
+Added: Therefore, the net revenue, expenses, assets, and liabilities of our international subsidiaries are translated from their functional currencies into U.S.
Fluctuations in the value of the U.S.
dollar affect the reported amounts of net revenue, expenses, assets, and liabilities.
−Removed: Foreign exchange differences which arise on translation of our foreign subsidiaries' balance sheets into U.S.
−Removed: dollars are recorded as a foreign currency translation adjustment in accumulated other comprehensive income or loss within stockholders' equity.
−Removed: We also have exposure to changes in foreign exchange rates associated with transactions which are undertaken by our subsidiaries in currencies other than their functional currency.
+Added: Foreign currency exchange differences which arise on translation of our international subsidiaries' balance sheets into U.S.
+Added: dollars are recorded as other comprehensive income (loss), net of tax in accumulated other comprehensive income or loss within stockholders' equity.
+Added: We also have exposure to changes in foreign currency exchange rates associated with transactions which are undertaken by our subsidiaries in currencies other than their functional currency.
Such transactions include intercompany transactions and inventory purchases denominated in currencies other than the functional currency of the purchasing entity.
−Removed: As a result, we have been impacted by changes in exchange rates and may be impacted for the foreseeable future.
+Added: As a result, we have been impacted by changes in foreign currency exchange rates and may be impacted for the foreseeable future.
The potential impact of currency fluctuation increases as our international expansion increases.
As of January 30, 2022, we had certain forward currency contracts outstanding in order to hedge a portion of the foreign currency exposure that arises on translation of a Canadian subsidiary into U.S.
−Removed: We also had certain forward currency contracts outstanding in an effort to reduce our exposure to the foreign exchange revaluation gains and losses that are recognized by our Canadian and Chinese subsidiaries on U.S.
+Added: We also had certain forward currency contracts outstanding in an effort to reduce our exposure to the foreign currency exchange revaluation gains and losses that are recognized by our Canadian and Chinese subsidiaries on U.S.
dollar denominated monetary assets and liabilities.
1 unchanged sentence
Derivative Financial Instruments included in Item 8 of Part II of this report for further information, including details of the notional amounts outstanding.
−Removed: In the future, in an effort to reduce foreign exchange risks, we may enter into further derivative financial instruments including hedging additional currency pairs.
+Added: In the future, in an effort to reduce foreign currency exchange risks, we may enter into further derivative financial instruments including hedging additional currency pairs.
We do not, and do not intend to, engage in the practice of trading derivative securities for profit.
13 unchanged sentences
• the following impacts to the consolidated balance sheets:
−Removed: Table o f Contents
– an increase in the foreign currency translation adjustment which arises on the translation of our Canadian subsidiaries' balance sheets into U.S.
−Removed: – a decrease in the foreign currency translation adjustment from derivative valuation losses on forward currency contracts, entered into as net investment hedges of a Canadian subsidiary.
−Removed: During 2020, the change in the relative value of the U.S.
−Removed: dollar against the Canadian dollar resulted in a $57.0 million reduction in accumulated other comprehensive loss within stockholders' equity.
+Added: – net investment hedge losses from derivative valuation losses on forward currency contracts, entered into as net investment hedges of a Canadian subsidiary.
During 2021, the change in the relative value of the U.S.
dollar against the Canadian dollar resulted in a $3.4 million increase in accumulated other comprehensive loss within stockholders' equity.
+Added: During 2020, the change in the relative value of the U.S.
+Added: dollar against the Canadian dollar resulted in a $57.0 million reduction in accumulated other comprehensive loss within stockholders' equity.
A 10% appreciation in the relative value of the U.S.
−Removed: dollar against the Canadian dollar compared to the exchange rates in effect for 2020 would have resulted in lower income from operations of approximately $22.0 million in 2020.
+Added: dollar against the Canadian dollar compared to the foreign currency exchange rates in effect for 2021 would have resulted in lower income from operations of approximately $16.2 million in 2021.
This assumes a consistent 10% appreciation in the U.S.
−Removed: dollar against the Canadian dollar throughout the fiscal year.
+Added: dollar against the Canadian dollar over the fiscal year.
The timing of changes in the relative value of the U.S.
−Removed: dollar combined with the seasonal nature of our business, can affect the magnitude of the impact that fluctuations in foreign exchange rates have on our income from operations.
+Added: dollar combined with the seasonal nature of our business, can affect the magnitude of the impact that fluctuations in foreign currency exchange rates have on our income from operations.
Interest Rate Risk .
6 unchanged sentences
We do not, and do not intend to, engage in the practice of trading derivative securities for profit.
−Removed: Our cash and cash equivalent balances are held in the form of cash on hand, bank balances, short-term deposits and treasury bills with original maturities of three months or less, and in money market funds.
+Added: Our cash and cash equivalent balances are held in the form of cash on hand, bank balances, and short-term deposits with original maturities of three months or less, and in money market funds.
We do not believe these balances are subject to material interest rate risk.
Credit Risk .
−Removed: We have cash on deposit with various large, reputable financial institutions and have invested in U.S.
−Removed: and Canadian Treasury Bills, and in AAA-rated money market funds.
+Added: We have cash on deposit with various large, reputable financial institutions and have invested in AAA-rated money market funds.
The amount of cash and cash equivalents held with certain financial institutions exceeds government-insured limits.
5 unchanged sentences
Inflationary factors such as increases in the cost of our product and overhead costs may adversely affect our operating results.
−Removed: Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net revenue if the selling prices of our products do not increase with these increased costs.
−Removed: Table o f Contents
+Added: During 2021 our product margin was impacted by higher air freight costs compared to 2020 as a result of global supply chain disruption.
+Added: Sustained air freight cost increases or other inflationary pressures in the future may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net revenue if the selling prices of our products do not increase with these increased costs, or we cannot identify cost efficiencies.
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.