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Interest Rate Risk
−Removed: Our primary exposure to market risk for changes in interest rates relates to our Term Loan of $350 million under our Credit Agreement for which the interest rate we pay is determined at the time of borrowing based on a floating index.
−Removed: As of October 1, 2022, we had interest rate swaps with an aggregate notional amount of $350 million that effectively convert $350 million of our outstanding floating rate debt to fixed rate debt.
+Added: Our primary exposure to market risk for changes in interest rates relates to our Term Loan Due 2027, under which $333 million is currently outstanding, and borrowings under our revolving credit facility, for which the interest rate we pay is based on a floating index.
+Added: As of September 30, 2023, we had interest rate swaps with an aggregate notional amount of $650 million that effectively convert our floating rate Term Loan Due 2027 to a fixed rate term loan.
An immediate 10 percent change in interest rates would not have a significant impact on our results of operations.
+Added: For more information about our debt and derivative instruments, see Note 5 “Financial Instruments” and Note 7 “Debt” of the notes to the Consolidated Financial Statements included in this report.
Foreign Currency Exchange Risk
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As a result, we can experience foreign exchange gains and losses in our results of operations.
−Removed: Our primary foreign currency cash flows are in certain Asian and European countries, Israel, Brazil and Mexico.
−Removed: We enter into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies.
−Removed: These contracts generally have maturities of up to two months.
−Removed: Accordingly, these forward contracts are not designated as part of a hedging relationship for accounting purposes.
−Removed: All outstanding foreign currency forward contracts are marked-to-market at the end of the period with unrealized gains and losses included in other income (expense), net, in the consolidated statements of income.
−Removed: As of October 1, 2022, we had outstanding foreign currency forward contracts to exchange various foreign currencies for U.S.
+Added: We enter into short-term foreign currency forward contracts to hedge currency exposures associated with certain monetary assets and liabilities denominated in non-functional currencies such as Mexican peso, Chinese renminbi and Indian rupee.
+Added: These contracts generally have maturities of up to two months and these forward contracts are not designated as part of a hedging relationship for accounting purposes.
+Added: Accordingly, all outstanding foreign currency forward contracts are marked-to-market at the end of the period with unrealized gains and losses included in other income (expense), net, in the consolidated statements of income.
+Added: From an economic perspective, the objective of our hedging program is for gains or losses on forward contracts to substantially offset gains and losses on the underlying hedged items.
+Added: As of September 30, 2023, we had outstanding foreign currency forward contracts to exchange various foreign currencies for U.S.
dollars in an aggregate notional amount of $338 million.
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The effective portion of changes in the fair value of the contracts is recorded in stockholders' equity as a separate component of accumulated other comprehensive income and recognized in earnings when the hedged item affects earnings.
−Removed: We had forward contracts related to cash flow hedges in various foreign currencies in an aggregate notional amount of $123 million as of October 1, 2022.
+Added: We had forward contracts related to cash flow hedges in various foreign currencies in an aggregate notional amount of $126 million as of September 30, 2023.
The net impact of an immediate 10 percent change in exchange rates would not be material to our consolidated financial statements, provided we accurately forecast and estimate our foreign currency exposure.
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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.