8 unchanged sentences
Assuming facilities under the Credit Agreement are fully drawn, each one-eighth percentage point increase or decrease in the applicable interest rates would correspondingly change our interest expense on our outstanding borrowings under the Credit Agreement by approximately $4.1 million per year before considering the impact of derivative instruments.
−Removed: For further discussion of the risks related to our Credit Agreement, see
−Removed: “Risk Factors—Risks Relating to Corporate Finance—Our indebtedness could adversely affect our financial condition, limit our ability to raise additional capital to fund our operations and prevent us from fulfilling our obligations under our indebtedness” in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 1, 2023.
+Added: For further discussion of the risks related to our Credit Agreement, see “Risk Factors—Risks Relating to Corporate Finance—Our indebtedness could adversely affect our financial condition, limit
+Added: our ability to raise additional capital to fund our operations and prevent us from fulfilling our obligations under our indebtedness” in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 1, 2023.
We selectively use derivative instruments to reduce market risk associated with changes in interest rates.
2 unchanged sentences
Under the terms of the agreement, we will pay a fixed rate of 1.58% and receive a variable rate of interest based on the USD-SOFR rate from the counterparty, which is reset every month through December 31, 2023.
−Removed: As of July 2, 2023, the notional amount of the interest rate swap was $500.0 million.
+Added: As of October 1, 2023, the notional amount of the interest rate swap was $500.0 million.
We also entered into interest rate swap contracts, commencing on December 30, 2022, with a total notional value of $1.3 billion, which is expected to increase to $1.8 billion on December 29, 2023, to hedge future interest rate exposures on variable rate debt, including the Revolving Credit Facility and Term Loan.
Our current investment policy with respect to our cash and cash equivalents focuses on maintaining acceptable levels of interest rate risk and liquidity.
−Removed: Although we continue to evaluate our investments, our cash equivalents as of July 2, 2023 consisted primarily of government money market funds and other high credit quality debt securities.
+Added: Although we continue to evaluate our investments, our cash equivalents as of October 1, 2023 consisted primarily of government money market funds and other high credit quality debt securities.
These funds provide daily liquidity and may be subject to interest rate risk and decrease in value if market interest rates increase.
3 unchanged sentences
These risks include the translation of local currency balances of foreign subsidiaries, transaction gains and losses associated with intercompany balances with foreign subsidiaries and transactions denominated in currencies other than the functional currency of the local jurisdiction.
−Removed: We derived approximately 45% and 38% of our Total revenues for the three and six months ended July 2, 2023, respectively, from operations outside the U.S.
+Added: We derived approximately 39% and 38% of our Total revenues for the three and nine months ended October 1, 2023, respectively, from operations outside the U.S.
For translation of operations in non-U.S.
Dollar currencies, the local currency of most entities is the functional currency.
−Removed: Foreign exchange effects from the translation of our balance sheet resulted in a comprehensive gain of $7.4 million and $38.1 million for the three and six months ended July 2, 2023, respectively.
−Removed: Foreign exchange effects from the translation of our balance sheet resulted in a comprehensive loss of $66.1 million and $66.0 million for the three and six months ended July 3, 2022, respectively.
+Added: Foreign exchange effects from the translation of our balance sheet resulted in a comprehensive loss of $55.3 million and $17.2 million for the three and nine months ended October 1, 2023, respectively.
+Added: Foreign exchange effects from the translation of our balance sheet resulted in a comprehensive loss of $92.9 million and $158.9 million for the three and nine months ended October 2, 2022, respectively.
Adjustments resulting from the re-measurement of transactions denominated in foreign currencies other than the functional currency of our subsidiaries are expensed as incurred.
In the majority of our jurisdictions, we earn revenue and incur costs in the currency used in such jurisdiction.
−Removed: We incur significant costs in foreign currencies, including Brazilian Real, British Pound, Chinese Yuan/Renminbi, Euro, Indian Rupee, Japanese Yen, Mexican Peso, and the Swiss Franc.
+Added: We incur significant costs in foreign currencies, including Australian Dollar, Brazilian Real, British Pound, Canadian Dollar, Chilean Peso, Chinese Yuan/Renminbi, Colombian Peso, Euro, Indian Rupee, Japanese Yen, Mexican Peso, Philippine Peso, South Korean Won, Swiss Franc and the Thai Baht.
As a result, movements in exchange rates cause our revenue and expenses to fluctuate, impacting our profitability and cash flows.
9 unchanged sentences
Where intercompany loans are not a component of permanently invested capital of the affected subsidiaries, increases or decreases in the value of the subsidiaries’ functional currency against other currencies can affect our results of operations.
−Removed: During the three and six months ended July 2, 2023, we recorded net foreign currency exchange losses of $0.6 million and $3.0 million, respectively.
−Removed: During the three and six months ended July 3, 2022, we recorded net foreign currency exchange losses of $4.5 million and $2.4 million, respectively.
+Added: During the three and nine months ended October 1, 2023, we recorded net foreign currency exchange losses of $1.8 million and $4.8 million, respectively.
+Added: During the three and nine months ended October 2, 2022, we recorded net foreign currency exchange gains of $0.2 million and losses of $2.2 million, respectively.
The foreign currency gains/losses in each period primarily consist of unrealized gains/losses related to intercompany loans denominated in currencies other than the functional currency of the affected subsidiaries.
1 unchanged sentence
We have entered into foreign currency forward contracts to manage our foreign currency exposures on foreign currency denominated firm commitments and forecasted foreign currency denominated intercompany and third-party transactions.
−Removed: We had forward contracts outstanding with a total notional amount of $865.0 million as of July 2, 2023, with maturity dates through December 2023.
−Removed: Foreign currency forward contracts that qualified and were designated for hedge accounting are recorded at
−Removed: their fair value as of July 2, 2023 and the pre-tax unrealized loss of $5.4 million is reported as a component of Other comprehensive income (loss), all of which is expected to be reclassified to earnings in the next 12 months.
+Added: We had forward contracts outstanding with a total notional amount of $743.9 million as of October 1, 2023, with maturity dates through December 2023.
+Added: Foreign currency forward contracts that qualified and were designated for hedge accounting are
+Added: recorded at their fair value as of October 1, 2023 and the pre-tax unrealized loss of $2.0 million is reported as a component of Other comprehensive (loss) income, all of which is expected to be reclassified to earnings in the next 12 months.
Actual gains (losses) upon settlement will be recognized in earnings, within the line item impacted, during the estimated time in which the transactions are incurred.
−Removed: Actual losses upon settlement recognized in earnings during the three and six months ended July 2, 2023 were $3.1 million and $2.6 million, respectively.
−Removed: Actual losses/gains upon settlement recognized in earnings during the three and six months ended July 3, 2022 were not material.
−Removed: See Note 12 to the unaudited Consolidated Financial Statements for additional information related to such forward contracts, which information is incorporated herein by reference.
+Added: Actual losses upon settlement recognized in earnings during the three and nine months ended October 1, 2023 were $2.2 million and $4.8 million, respectively.
+Added: Actual gains upon settlement recognized in earnings during the three and nine months ended October 2, 2022 were $0.8 million and $1.0 million, respectively.
+Added: See Note 12 to the Consolidated Financial Statements for additional information related to such forward contracts, which information is incorporated herein by reference.
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.