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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2024-12-19 compared with 2023-12-26 · 25 added, 18 removed, 8 unchanged (84% of the section changed)

2 unchanged sentences

We conduct business in several major currencies throughout our worldwide operations, and our financial performance may be affected by fluctuations in the exchange rates of these currencies.

Changes in exchange rates

can positively or negatively affect our reported revenue, operating income, assets, liabilities, and equity.

The functional currencies of our Asian subsidiaries are the South Korean won, the New Taiwan dollar, the RMB, and the Singapore dollar.

functional currencies of our European subsidiaries are the British pound and the euro.

exchange rates can positively or negatively affect our reported revenue, operating income, assets, liabilities, and equity.

The functional currencies of our Asian subsidiaries are the South Korean won, the New Taiwan dollar, the RMB, and

the Singapore dollar.

The functional currencies of our European subsidiaries are the British pound and the euro.

In addition, we engage in transactions and have exposures to the Japanese yen.

We attempt to minimize our risk of foreign currency transaction losses by producing products in the same country in which the products are sold (thereby generating revenues and incurring expenses in the same currency),

and by managing our working capital.

However, in some instances, we sell products in a currency other than the functional currency of the country where it was produced, or purchase products in a currency that differs from the functional currency of

the purchasing entity.

We may also enter into derivative contracts to mitigate our exposure to foreign currency fluctuations when we have a significant purchase obligation or significant receivable denominated in a currency that differs from the

functional currency of the transacting subsidiary.

currency), and by managing our working capital.

However, in some instances, we sell products in a currency other than the functional currency of the entity where it was produced, or purchase products in a currency that differs from the

functional currency of the purchasing entity.

We may also enter into derivative contracts to mitigate our exposure to foreign currency fluctuations when we have a significant purchase obligation or significant receivable denominated in a

currency that differs from the functional currency of the transacting subsidiary.

We do not enter into derivatives for speculative purposes.

There can be no assurance that this approach will protect us from the need to recognize significant foreign currency transaction gains and

losses, especially in the event of a significant adverse movement in the value of any foreign currency in which we conduct business against any of our functional currencies, including the U.S.

Our primary net foreign currency exposures as of October 31, 2023, included the South Korean won, the Japanese yen, the New Taiwan dollar, the Chinese renminbi, the Singapore dollar, the British pound sterling, and the

As of October 31, 2023, a 10% adverse movement in the value of these currencies against the functional currencies of our subsidiaries would have resulted in a net unrealized pre-tax loss of $52.0 million, which represents an increase of $17.3

million from the same movement as of October 31, 2022.

The increase in foreign currency rate change risk is primarily the result of increased net exposures of the New Taiwan dollar and South Korean won against the U.S.

We do not believe

that a 10% change in the exchange rates of other non-U.S.

There can be no assurance that this approach will protect us from the need to recognize

significant foreign currency transaction gains and losses, especially in the event of a significant adverse movement in the value of any foreign currency in which we conduct business against any of our functional currencies, including the

Our primary net foreign currency exposures as of October 31, 2024, included the South Korean won, the Japanese yen, the New Taiwan dollar, the Chinese renminbi, the Singapore dollar, the British pound

sterling, and the euro.

As of October 31, 2024, a 10% adverse movement in the value of the non-functional currencies against the functional currencies of our subsidiaries would have resulted in a net unrealized pre-tax loss of $61.3

million, which represents an increase of $9.3 million from the same movement as of October 31, 2023.

The increase in foreign currency rate change risk is primarily the result of increased net exposures of the New Taiwan dollar and South

Korean won against the U.S.

We do not believe that a 10% change in the exchange rates of other non-U.S.

dollar currencies would have had a material effect on our October 31, 2024, consolidated financial statements.

1 unchanged sentence

A 10% adverse movement in the interest rates on our variable rate borrowings would not have had a material effect on our October 31, 2024, consolidated financial statements.

Inflation Risk

Inflationary factors generally affect us by increasing our labor and overhead costs, as well as costs associated with certain risks identified above, which may adversely affect our results of operations and

financial position.

We have historically been able to recover the impacts of inflation through sales price increases, however we cannot reasonably estimate our ability to successfully recover any impact of inflation through price

increases in the future.

Our inability to do so could harm our results of operations and financial position.

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.

What changed 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk