3 unchanged sentences
These risk management strategies may not fully insulate the Company from adverse impacts due to market risks.
+Added: Table o f Contents
Interest Rate Risk
2 unchanged sentences
As of December 31, 2022, there was no outstanding balance on the revolving credit facility.
−Removed: 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 $196.5 million at a current weighted average interest rate of 3.2% and fixed rate debt and finance
−Removed: leases outstanding of $607.2 million at a current weighted average interest rate of 5.4% as of December 31, 2021.
+Added: 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 (which terminated on February 28, 2022) and a $130.0 million interest rate swap in March 2019, and has classified $130.0 million of the Company’s variable rate debt as fixed rate debt.
+Added: Including the impact of the $130.0 million interest rate swap of variable rate to fixed rate debt, Quad had variable rate debt outstanding of $428.2 million at a current weighted average interest rate of 6.3% and fixed rate debt and finance leases outstanding of $142.0 million at a current weighted average interest rate of 5.1% as of December 31, 2022.
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: 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.
+Added: In addition, a hypothetical 10% change in market interest rates would change the fair value of fixed rate debt at December 31, 2022 by approximately $0.1 million.
Foreign Currency Risk and Translation Exposure
4 unchanged sentences
dollars in preparing the Company’s consolidated balance sheets.
−Removed: As of December 31, 2021, the Company’s foreign subsidiaries (excluding Argentina due to the economy’s status as highly inflationary) had net current assets (defined as current assets less current liabilities) subject to foreign currency translation risk of $34.6 million.
+Added: As of December 31, 2022, the Company’s foreign subsidiaries had net current assets (defined as current assets less current liabilities) subject to foreign currency translation risk of $77.5 million.
The potential decrease in net current assets as of December 31, 2022, from a hypothetical 10% adverse change in quoted foreign currency exchange rates would be approximately $7.7 million.
7 unchanged sentences
Accordingly, future results could be adversely impacted by changes in these or other factors.
+Added: Table o f Contents
The Company has considered the economy in Argentina to be highly inflationary, effective June 30, 2018.
−Removed: In accordance with Accounting Standards Codification 830 - Foreign Currency Matters , a highly inflationary economy is one that has experienced cumulative inflation of approximately 100 percent or more over a three-year period.
+Added: In accordance with Accounting Standards Codification (“ASC”) 830 - Foreign Currency Matters , a highly inflationary economy is one that has experienced cumulative inflation of approximately 100 percent or more over a three-year period.
An entity is required to apply the revised accounting guidance in the reporting period following when the economy was deemed to be highly inflationary.
2 unchanged sentences
Due to the Argentina economy classification as highly inflationary, the impact from foreign currency losses was $1.8 million and $0.6 million during the years ended December 31, 2022 and 2021, respectively, and was recorded in restructuring, impairment and transaction-related charges in the consolidated statements of operations.
−Removed: The Company’s operations in Argentina represented less than 1.0% of total consolidated assets as of December 31, 2021, and less than 1.0% of total consolidated net sales for the year ended December 31, 2021.
+Added: As of December 31, 2022, there were no assets from the operations in Argentina in the total consolidated assets.
+Added: For the year ended December 31, 2022, there was less than 1.0% of total consolidated net sales from the operations in Argentina.
Credit risk is the possibility of loss from a client’s failure to make payments according to contract terms.
2 unchanged sentences
Clients’ financial condition is continuously monitored as part of the normal course of business.
−Removed: Some of the Company’s clients are highly leveraged or otherwise subject to their own operating and regulatory risks.
+Added: Some of the Company’s clients are highly leveraged or otherwise subject to their own operating and regulatory ri sks.
Based on those client account reviews and the continued uncertainty of the global economy, the Company has established an allowance for credit losses of $26.4 million as of December 31, 2022.
3 unchanged sentences
Any increase in nonpayment or nonperformance by clients could adversely impact the Company’s results of operations and financial condition.
−Removed: Economic disruptions, including the impacts from the COVID-19 pandemic, could result in significant future charges.
−Removed: The Company is continuing to actively monitor the situation and related risks around the COVID-19 pandemic.
+Added: Economic disruptions could result in significant future charges.
Commodity Risk
11 unchanged sentences
The Company’s working capital requirements, including the impact of seasonality, are partially mitigated through the direct purchasing of paper by its clients.
+Added: Table o f Contents
The Company produces the majority of ink used in its print production, allowing it to control the quality, cost and supply of key inputs.
1 unchanged sentence
The price and availability of ink and ink components may be adversely affected by the availability of component raw materials, labor and transportation.
−Removed: 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.
+Added: The Company may not be able to fully 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.
3 unchanged sentences
however, significant increases in commodity pricing or tight supply could influence future client demand for printed products.
+Added: Table o f Contents
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.