16 unchanged sentences
We held forward foreign exchange contracts, designated as economic hedges, with U.S.
−Removed: dollar equivalent notional amounts totaling $371.9 million at January 2, 2022, $808.0 million at January 3, 2021, and $277.6 million at December 29, 2019, and the fair value of these foreign currency derivative contracts was insignificant.
+Added: dollar equivalent notional amounts totaling $476.9 million at January 1, 2023, $371.9 million at January 2, 2022, and $808.0 million at January 3, 2021, and the fair value of these foreign currency derivative contracts was insignificant.
The gains and losses realized on these foreign currency derivative contracts are not material.
The duration of these contracts was generally 30 days or less during each of fiscal years 2022, 2021 and 2020.
−Removed: In addition, in connection with certain intercompany loan agreements utilized to finance its acquisitions and stock repurchase program, we enters into forward foreign exchange contracts intended to hedge movements in foreign exchange rates prior to settlement of such intercompany loans denominated in foreign currencies.
+Added: In addition, in connection with certain intercompany loan agreements utilized to finance our acquisitions and stock repurchase program, we enter into forward foreign exchange contracts intended to hedge movements in foreign exchange rates prior to settlement of such intercompany loans denominated in foreign currencies.
We record these hedges at fair value on our consolidated balance sheets.
2 unchanged sentences
The outstanding forward exchange contracts designated as economic hedges, which were intended to hedge movements in foreign exchange rates prior to the settlement of certain intercompany loan agreements, included combined U.S.
−Removed: Dollar notional amounts of $360.2 million as of January 2, 2022, combined Euro notional amounts of €33.4 million and combined U.S.
−Removed: Dollar notional amounts of $499.0 million as of January 3, 2021, and combined Euro notional amounts of €105.8 million and combined U.S.
−Removed: Dollar notional amounts of $5.6 million as of December 29, 2019.
+Added: Dollar notional amounts of $360.2 million as of January 2, 2022.
The net gains and losses on these derivatives, combined with the gains and losses on the remeasurement of the hedged intercompany loans were not material.
−Removed: During fiscal year 2018, we designated a portion of the 2026 Notes to hedge its investments in certain foreign subsidiaries.
−Removed: Unrealized translation adjustments from a portion of the 2026 Notes were included in the foreign currency translation component of AOCI, which offsets translation adjustments on the underlying net assets of foreign subsidiaries.
+Added: During fiscal year 2018, we designated a portion of the 2026 Notes to hedge our investments in certain foreign subsidiaries.
+Added: Unrealized translation adjustments from a portion of the 2026 Notes were included in the foreign currency translation component of accumulated other comprehensive income (“AOCI”), which offsets translation adjustments on the underlying net assets of foreign subsidiaries.
The cumulative translation gains or losses will remain in AOCI until the foreign subsidiaries are liquidated or sold.
−Removed: As of January 2,
−Removed: 2022, the total notional amount of the 2026 Notes that was designated to hedge investments in foreign subsidiaries was €497.2 million.
+Added: As of January 1, 2023, the total notional amount of the 2026 Notes that was designated to hedge investments in foreign subsidiaries was €497.2 million.
The unrealized foreign exchange (gains) losses recorded in AOCI related to the net investment hedge were $(34.5) million, $33.2 million and $49.6 million during the fiscal years 2022, 2021 and 2020, respectively.
−Removed: During fiscal year 2019, we entered into a cross-currency swap designated as a net investment hedge to hedge the Euro currency exposure of our net investment in certain foreign subsidiaries.
−Removed: This agreement is a contract to exchange fixed-rate payments in one currency for fixed-rate payments in another currency.
−Removed: Changes in the fair value of this swap are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments.
−Removed: In assessing the effectiveness of this hedge, we use a method based on changes in spot rates to measure the impact of the foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related swap.
−Removed: Under this method, changes in the fair value of the hedging instrument other than those due to changes in the spot rate are initially recorded in AOCI as a translation adjustment, and then are amortized into other (income) expense, net in the consolidated statement of operations using a systematic and rational method over the instrument’s term.
−Removed: Changes in the fair value associated with the effective portion (i.e.
−Removed: those changes due to the spot rate) are recorded in AOCI as a translation adjustment and are released and recognized in earnings only upon the sale or liquidation of the hedged net investment.
−Removed: The cross-currency swap had an initial notional value of €197.4 million or $220.0 million and matured on November 15, 2021.
−Removed: Interest on the cross-currency swap was payable semi-annually, in Euro, on May 15th and November 15th of each year based on the Euro notional value and a fixed rate of 2.47%.
−Removed: We received interest in U.S.
−Removed: dollars on May 15th and November 15th of each year based on the U.S.
−Removed: dollar equivalent of the Euro notional value and a fixed rate of 5.00%.
−Removed: During fiscal year 2020, we entered into forward foreign exchange contracts, designated as cash flow hedges, to hedge the 2021 Notes.
−Removed: The effective portion of the gain or loss of the cash flow hedges were reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affected earnings.
−Removed: During the second quarter of fiscal year 2021, we redeemed all of its outstanding 2021 Notes and settled the forward foreign exchange contracts that were designated as cash flow hedges.
−Removed: The foreign exchange losses (gains) recorded in earnings related to the cash flow hedges were $9.5 million and $(29.3) million d ur ing the fiscal years 2021 and 2020, respectively.
−Removed: During fiscal year 2021, we entered into forward foreign exchange contracts, designated as cash flow hedges, to hedge a portion of the 2026 Notes.
−Removed: The effective portion of the gain or loss of the cash flow hedges will be reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings.
−Removed: During the fourth quarter of fiscal year 2021, we settled the forward foreign exchange contracts that were designated as cash flow hedges.
−Removed: The foreign exchange loss recorded in earnings related to the cash flow hedges was $8.7 million during fiscal year 2021.
−Removed: During fiscal year 2021, we entered into two interest rate swaption agreements (together, the “Swaptions”) with expiration dates of September 30, 2021 in anticipation of issuing notes to fund the acquisition of BioLegend.
−Removed: The first Swaption had a term of 2 months and hedged an anticipated 10-year note offering, with a notional value of $500.0 million.
−Removed: The second Swaption had a term of 2 months and hedged an anticipated 7-year note offering, with a notional value of $500.0 million.
−Removed: We designated the Swaptions as qualifying hedging instruments and accounted for these derivatives as cash flow hedges.
−Removed: On September 8, 2021, we sold both Swaptions, and as a result, recognized a loss of $8.2 million in interest and other expense, net during the fiscal year 2021.
−Removed: We also recorded other comprehensive income of $3.8 million, which will be amortized to interest and other expense, net over the 7 and 10 year terms, respectively, of the related permanent financing.
We do not expect any material net pre-tax gains or losses to be reclassified from accumulated other comprehensive (loss) income into interest and other expense, net within the next twelve months.
6 unchanged sentences
The intent of these economic hedges is to offset gains and losses that occur on the underlying exposures, with gains and losses resulting from the forward contracts that hedge these exposures.
−Removed: Moreover, we are able to partially mitigate the impact that fluctuations in currencies have on our net income as a result of our manufacturing facilities located in countries outside the
−Removed: United States, material sourcing and other spending which occur in countries outside the United States, resulting in natural hedges.
+Added: Moreover, we are able to partially mitigate the impact that fluctuations in currencies have on our net income as a result of our manufacturing facilities located in countries outside the United States, material sourcing and other spending which occur in countries outside the United States, resulting in natural hedges.
Although we attempt to manage our foreign currency exchange risk through the above activities, when the U.S.
6 unchanged sentences
Our Value-at-Risk computation is based on the Monte Carlo simulation, utilizing a 95% confidence interval and a holding period of 30 days.
−Removed: As of January 2, 2022, this computation estimated that there is a 5% chance that the market value of the underlying exposures and the corresponding derivative instruments either increase or decrease due to foreign currency fluctuations by more than $31,500.
+Added: As of January 1, 2023, this computation estimated that there is a 5% chance that the market value of the underlying exposures and the corresponding derivative instruments either increase or decrease due to foreign currency fluctuations by more than $3.1 million.
This Value-At-Risk measure is consistent with our financial statement disclosures relative to our foreign currency hedging program.
1 unchanged sentence
Interest Rate Risk.
−Removed: As of January 2, 2022, we had $500.0 million in outstanding borrowings under our senior unsecured revolving credit and term loan facilities.
−Removed: Amounts drawn under our senior unsecured revolving credit and term loan facilities bear interest at variable rates;
+Added: As of January 1, 2023 , we had no outstandi ng borrowings under our senior unsecured revolving credit facility.
+Added: Amounts drawn under our senior unsecured revolving credit facility bear interest at variable rates;
all of our other debt bear interest at fixed rates.
−Removed: Our cash and cash equivalents, for which we receive interest at variable rates, were $618.3 million at January 2, 2022.
+Added: Our cash and cash equivalents from continuing operations, for which we receive interest at variable rates, were $454.4 million at January 1, 2023.
Fluctuations in interest rates can therefore have a direct impact on both our short-term cash flows, as they relate to interest, and our earnings.
To manage the volatility relating to these exposures, we periodically enter into various derivative transactions pursuant to our policies to hedge against known or forecasted interest rate exposures.
+Added: However, no such instruments are outstanding at January 1, 2023.
Interest Rate Risk—Sensitivity .
Our current earnings exposure for changes in interest rates can be summarized as follows:
−Removed: (i) Changes in interest rates can cause our cash flows to fluctuate.
−Removed: An increase of 10%, or approximately 12 basis points, in current interest rates would cause our cash outflows to increase by $0.6 million for fiscal year 2022.
+Added: (i) Changes in interest rates can cause our interest expense and cash flows to fluctuate to the extent we have borrowing outstanding on our revolving credit facility.
(ii) Changes in interest rates can cause our interest income and cash flows to fluctuate.
+Added: We believe that we do not have any material exposure of interest rate risk.
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.