8 unchanged sentences
In order to reduce the variability of cash flows from interest payments related to a portion of Quad’s variable-rate debt, the Company entered into a $250.0 million interest rate swap in February 2017 and a $130.0 million interest rate swap in March 2019, and has classified $380.0 million of the Company’s variable rate debt as fixed rate debt.
−Removed: Including the impact of the $380.0 million interest rate swap of variable rate to fixed rate debt, Quad had variable rate debt outstanding of $278.4 million at a current weighted average interest rate of 3.4% and fixed rate debt and finance leases outstanding of $649.8 million at a current weighted average interest rate of 5.5% as of December 31, 2020.
+Added: Including the impact of the $380.0 million interest rate swap of variable rate to fixed rate debt, Quad had variable rate debt outstanding of $196.5 million at a current weighted average interest rate of 3.2% and fixed rate debt and finance
+Added: leases outstanding of $607.2 million at a current weighted average interest rate of 5.4% as of December 31, 2021.
A hypothetical 10% increase in the market interest rates impacting the Company’s current weighted average interest rate on variable rate debt obligations would not have a material impact on the Company’s interest expense.
−Removed: A hypothetical 10% change in market interest rates would change the fair value of fixed rate debt at December 31, 2020, by approximately $4 million.
+Added: In addition, a hypothetical 10% change in market interest rates would not have a material impact on the fair value of fixed rate debt at December 31, 2021.
Foreign Currency Risk and Translation Exposure
34 unchanged sentences
Commodity Risk
−Removed: The primary raw materials that Quad uses in its print business are paper, ink and energy.
−Removed: At this time, the Company’s supply of raw materials is readily available from numerous vendors;
−Removed: however, based on market conditions, that could change in the future.
+Added: The primary raw materials that the Company uses in its print business are paper, ink and energy.
+Added: At this time, the Company’s supply of raw materials are available from numerous vendors;
+Added: however, based on market conditions, the current supply is under pressure due to supply chain shortages and higher than expected inflation.
The Company generally buys these raw materials based upon market prices that are established with the vendor as part of the procurement process.
−Removed: Approximately half of the paper used in the printing process is supplied directly by the Company’s clients.
+Added: The price of such raw materials has fluctuated over time and has caused fluctuations in the Company’s net sales and cost of sales.
+Added: This volatility may continue and the Company may experience increases in the costs of its raw materials in the future as prices in the overall paper, ink and energy markets are expected to remain beyond its control.
+Added: The price and availability of paper may also be adversely affected by paper mills’ permanent or temporary closures, and mills’ access to raw materials, conversion to produce other types of paper, and ability to transport paper produced.
+Added: Approximately half of the paper used by the Company is supplied directly by its clients.
For those clients that do not directly supply their own paper, the Company makes use of its purchasing efficiencies to supply paper by negotiating with leading paper vendors, uses a wide variety of paper grades, weights and sizes, and does not rely on any one vendor.
4 unchanged sentences
Raw materials for the ink manufacturing process are purchased externally from a variety of vendors.
+Added: The price and availability of ink and ink components may be adversely affected by the availability of component raw materials, labor and transportation.
The Company generally cannot pass on to clients the impact of higher electric and natural gas energy prices on its manufacturing costs, and increases in energy prices result in higher manufacturing costs for certain of its operations.
The Company mitigates its risk through natural gas hedges when appropriate.
−Removed: In its logistic operations, however, the Company is able to pass a substantial portion of any increase in fuel prices directly to its clients.
+Added: In its logistics operations, however, the Company is able to pass a substantial portion of any increase in fuel prices directly to its clients.
+Added: To the extent the cost of other raw materials increase and the Company is not able to increase selling prices of its products, then the Company may experience margin declines.
As a result, management believes a hypothetical 10% change in the price of paper and other raw materials would not have a significant direct impact on the Company’s consolidated annual results of operations or cash flows;
however, significant increases in commodity pricing or tight supply could influence future client demand for printed products.
−Removed: Inflation has not had a significant impact on the Company historically.
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.