3 unchanged sentences
We do not enter into derivative financial instruments for speculative or trading purposes.
−Removed: Foreign Currency Risk
−Removed: We are exposed to foreign currency risk on sales, costs and assets and liabilities denominated in currencies other than the U.S.
−Removed: We seek to manage our foreign exchange risk largely through operational means, including matching revenue with same-currency costs and assets with same-currency liabilities.
−Removed: We currently transact business in eight primary currencies worldwide, of which the most significant were the U.S.
−Removed: dollar, the euro, the Mexican peso, and the Chinese renminbi.
−Removed: A portion of our balance sheet is exposed to foreign currency exchange rate fluctuations, which may result in non-operating foreign currency exchange gains or losses upon remeasurement.
−Removed: In the nine months ended January 30, 2021, we reported foreign currency exchange losses of approximately $0.7 million, which were primarily attributed to the remeasurement of net monetary assets and liabilities denominated in currencies other than the functional currencies of our subsidiaries.
−Removed: In January 2021, we began to use foreign currency forward contracts to provide an economic hedge against balance sheet exposure to certain monetary assets and liabilities denominated in currencies other than the functional currency of the subsidiary.
−Removed: The forward contracts have a maturity of less than three months and are not designated as hedging instruments.
−Removed: At January 30, 2021, the notional value of these outstanding contracts was $21.9 million, and the net unrealized loss was $0.2 million.
−Removed: The impact of a change in the foreign currency exchange rates on our foreign currency forward contracts will generally be offset against the gain or loss from the re-measurement of the underlying balance sheet exposure.
−Removed: The translation of the assets and liabilities of our international subsidiaries is made using the foreign currency exchange rates as of the end of the reporting period.
−Removed: Translation adjustments are not included in determining net income but are included in accumulated other comprehensive income (loss) within shareholders’ equity on the condensed consolidated balance sheets until a sale or substantially complete liquidation of the net investment in the international subsidiary takes place.
−Removed: As of January 30, 2021, the cumulative net currency translation adjustments increased shareholders’ equity by $14.0 million.
−Removed: We have outstanding a euro denominated cross-currency swap which is treated as a net investment hedge to reduce our exposure to translational exchange risk.
−Removed: As of January 30, 2021, we recorded a deferred loss, net of tax, of $5.8 million related to the cross-currency swap.
−Removed: Interest Rate Risk
−Removed: We are exposed to market risk from changes in interest rates.
−Removed: The interest rate risk for our senior unsecured credit agreement, under which we had $231.6 million of net borrowings as of January 30, 2021, is variable and is based on LIBOR.
−Removed: We estimate that a 1% increase in interest rates under our senior unsecured credit agreement would result in increased annual interest expense of $2.3 million.
−Removed: Commodity Price Risk
−Removed: We are exposed to commodity price risk primarily on our raw material purchases.
−Removed: These raw materials are not rare or unique to our industry.
−Removed: The cost of copper, resins, and other commodities, such as fuel and energy, has fluctuated in recent years due to changes in global supply and demand.
−Removed: The cost of copper has increased significantly in fiscal 2021.
−Removed: Our gross margins could be affected if these types of costs continue to fluctuate.
−Removed: We actively manage these raw material costs through global sourcing initiatives and price increases on our products.
−Removed: However, in the short-term, rapid increases in raw material costs can be very difficult to offset with price increases because of contractual agreements with our customers.
+Added: There has been no significant change in our exposure to market risk during the three months ended July 31, 2021.
+Added: For a discussion of our exposure to market risk, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” contained in our Annual Report on Form 10-K for the year ended May 1, 2021.
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.