QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Debt Obligations under Credit Agreement
−Removed: As of September 29, 2024, our total debt obligations under our 2021 Credit Agreement accrue interest under SOFR-based interest rates.
−Removed: A 100-basis point increase in the underlying SOFR would result in additional annual interest cost of approximately $4.9 million, assuming average borrowings, including our revolving credit facility and term loan under our senior credit facility, subject to variable rates of $490.6 million, which was the amount of such borrowings outstanding at September 29, 2024 subject to variable rates, excluding deferred financing costs related to the term loan.
+Added: Debt Obligations
+Added: As of March 30, 2025, our total debt obligations under our 2024 Credit Agreement were under Secured Overnight Financing Rate ("SOFR")-based interest rates.
+Added: A 100-basis point increase in the underlying SOFR rates would result in additional annual interest cost of approximately $3.33 million, assuming average borrowings during 2025, including the Revolver due 2029 and Term Loan due 2029, subject to variable rates were equal to the amount of such borrowings outstanding at March 30, 2025, excluding deferred financing costs related to the Revolver due 2029 and Term Loan due 2029.
Commodity Volatility
−Removed: The prices of key raw materials, consisting primarily of lauan, gypsum, particleboard, aluminum, softwoods lumber, and petroleum-based products, are influenced by demand and other factors specific to these commodities, such as the price of oil, rather than being directly affected by inflationary pressures.
−Removed: Prices of certain commodities have historically been volatile.
+Added: The prices of key raw materials, consisting primarily of lauan, gypsum, fiberglass, particleboard, aluminum, softwoods and hardwoods lumber, resin, and petroleum-based products, are influenced by demand and other factors specific to these commodities as well as general inflationary pressures, including those driven by supply chain and logistical disruptions.
+Added: Prices of certain commodities have historically been volatile and continued to fluctuate in 2025.
During periods of volatile commodity prices, we have generally been able to pass both price increases and decreases to our customers in the form of price adjustments.
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We do not believe that commodity price volatility had a material effect on results of operations for the periods presented.
+Added: Equity Price Risk
+Added: The fair value of the 1.75% Convertible Notes is subject to market risk and other factors due to the conditional conversion feature.
+Added: The fair value of the 1.75% Convertible Notes will generally increase as our common stock price increases and will generally decrease as our common stock price decreases.
+Added: The 1.75% Convertible Notes are carried at amortized cost and their fair value is presented for disclosure purposes only.
+Added: The Company will satisfy any conversion by paying cash up to the aggregate principal amount of the 1.75% Convertible Notes to be converted and by paying or delivering, as the case may be, cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the 1.75% Convertible Notes being converted.
+Added: In connection with the pricing of the 1.75% Convertible Notes, we entered into convertible note hedge transactions with certain of the initial purchasers and/or their respective affiliates (the “option counterparties”).
+Added: At the same time, we entered into warrant transactions with the option counterparties.
+Added: The convertible note hedge transactions are expected generally to reduce the potential dilution upon conversion of the 1.75% Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted notes, as the case may be.
+Added: However, the warrant transactions could separately have a dilutive effect on our common stock to the extent that the market price per share of our common stock exceeds the strike price of the warrants described in Note 9 "Derivative Financial Instruments" included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.
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.