−Removed: Item 3.Quantitative and Qualitative Disclosures About Market Risk
+Added: Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk
1 unchanged sentence
We attempt to minimize interest rate risk exposure by fixing our interest rate through the utilization of interest rate swaps, which are derivative financial instruments.
−Removed: The interest rate swaps were de-designated following the issuance of the Notes in the third quarter of 2021.
Our swaps are entered into with financial institutions that participate in the PJI Revolving Facility.
1 unchanged sentence
We do not enter into contracts for trading purposes and do not use leveraged instruments.
−Removed: The market risks associated with our debt obligations as of June 26, 2022 have not changed from those reported in “Part II.
+Added: The market risks associated with our debt obligations as of September 25, 2022 have not changed from those reported in “Part II.
Quantitative and Qualitative Disclosure About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 26, 2021.
3 unchanged sentences
Our international operations principally consist of distribution sales to franchised Papa John’s restaurants located in the United Kingdom and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our international franchisees.
−Removed: Approximately, 6.1% and 6.2% of our revenues were derived from these operations for the three and six months ended June 26, 2022, respectively, as compared to 7.3% and 7.0% for the prior year comparable periods.
+Added: Approximately, 6.0% and 6.2% of our revenues were derived from these operations for the three and nine months ended September 25, 2022, respectively, as compared to 7.5% and 7.2% for the prior year comparable periods.
We have not historically hedged our exposure to foreign currency fluctuations.
−Removed: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $3.2 million and $4.4 million on International revenues for the three and six months ended June 26, 2022, respectively, and a favorable impact of $3.8 million and $5.8 million for the three and six months ended June 27, 2021, respectively.
−Removed: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $0.4 million and $1.0 million on operating income for the three and six months ended June 26, 2022, respectively, and a favorable impact of $0.9 million and $1.4 million on operating income for the three and six months ended June 27, 2021, respectively.
+Added: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $4.6 million and $9.0 million on International revenues for the three and nine months ended September 25, 2022, respectively, and a favorable impact of $2.1 million and $7.9 million for the three and nine months ended September 26, 2021, respectively.
+Added: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $0.4 million and $1.5 million on operating income for the three and nine months ended September 25, 2022, respectively, and a favorable impact of $0.4 million and $1.7 million on operating income for the three and nine months ended September 26, 2021, respectively.
Commodity Price Risk
2 unchanged sentences
however, we remain exposed to on-going commodity volatility.
−Removed: The following table presents the actual average block price for cheese by quarter through the second quarter of 2022 and the projected average block price by quarter for 2022 (based on the July 29, 2022 Chicago Mercantile Exchange cheese futures market prices):
+Added: The following table presents the actual average block price for cheese by quarter through the third quarter of 2022 and the projected average block price by quarter for 2022 (based on the October 28, 2022 Chicago Mercantile Exchange cheese futures market prices):
Block Price Actual
3 unchanged sentences
Quarter 4 1.974 1.786
−Removed: Full Year $ 2.091 * $ 1.705
−Removed: *The full year estimate is based on futures prices and does not include the impact of forward pricing agreements we have for a portion of our cheese purchases for our domestic Company-owned restaurants.
+Added: Full Year $ 2.043 (a) $ 1.705
+Added: (a) The full year estimate is based on futures prices and does not include the impact of forward pricing agreements we have for a portion of our cheese purchases for our domestic Company-owned restaurants.
Additionally, the price charged to restaurants can vary somewhat by quarter from the actual block price based upon our monthly pricing mechanism.
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.