Quantitative and Qualitative Disclosures About Market Risk
−Removed: We have exposure to market risks primarily from changes in raw material prices.
−Removed: In recent years, due to the absence of any borrowings, we have not had exposure to changes in interest rates.
−Removed: We also have not had exposure to market risk associated with derivative financial instruments or derivative commodity instruments as we do not utilize any such instruments.
+Added: We have exposure to market risks primarily from changes in raw material prices and interest rates.
+Added: Our exposure to market risk for changes in interest rates relates primarily to the amount of interest on borrowings under our unsecured credit facility.
+Added: Interest is variable based upon formulas tied to SOFR or an alternate base rate.
+Added: We have not had exposure to market risk associated with derivative financial instruments or derivative commodity instruments as we do not utilize any such instruments.
RAW MATERIAL PRICE RISK
1 unchanged sentence
The market prices for these commodities are subject to fluctuation based upon a number of economic factors and may become volatile at times.
−Removed: While we do not use any derivative commodity instruments to hedge against commodity price risk, we do actively manage a portion of the risk through a structured forward purchasing program for certain key materials such as soybean oil and flour.
+Added: While we do not use any derivative commodity instruments to hedge against commodity price risk, we do actively manage a portion of the risk through a structured forward purchasing program for certain key materials such as soybean oil, dairy and flour.
This program, coupled with short-term fixed price arrangements on other significant raw materials, provide us more predictable input costs, which, in addition to the supply contracts with our foodservice customers that allow us to pass along price increases for commodities, help to reduce margin volatility during periods of significant volatility in the commodity markets.
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.