3 unchanged sentences
These risk management strategies may not fully insulate the Company from adverse impacts due to market risks.
−Removed: Table o f Contents
Interest Rate Risk
2 unchanged sentences
As of December 31, 2023, 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 (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.
−Removed: 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.
+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 $130.0 million interest rate swap in March 2019, and two $75.0 million interest rate collars in February 2023, and has classified $280.0 million of the Company’s variable rate debt as fixed rate debt.
+Added: Including the impact of the $280.0 million interest rate hedges of variable rate to fixed rate debt, Quad had variable rate debt outstanding of $229.9 million at a current weighted average interest rate of 7.5% and fixed rate debt and finance leases outstanding of $292.8 million at a current weighted average interest rate of 6.3% as of December 31, 2023.
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.
16 unchanged sentences
Accordingly, future results could be adversely impacted by changes in these or other factors.
−Removed: Table o f Contents
−Removed: The Company has considered the economy in Argentina to be highly inflationary, effective June 30, 2018.
−Removed: 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.
−Removed: An entity is required to apply the revised accounting guidance in the reporting period following when the economy was deemed to be highly inflationary.
−Removed: As a result of this classification, the functional currency of the Company's Argentina subsidiaries was changed from the local currency to the U.S.
−Removed: Dollar, beginning July 1, 2018, and impacts from the change in the value of the local currency for monetary assets and liabilities is now reflected in the consolidated statements of operations.
−Removed: 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: As of December 31, 2022, there were no assets from the operations in Argentina in the total consolidated assets.
−Removed: 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.
12 unchanged sentences
At this time, the Company’s supply of raw materials are available from numerous vendors.
−Removed: 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.
7 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.
−Removed: 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.
5 unchanged sentences
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.
−Removed: 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;
+Added: 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: 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.