3 unchanged sentences
We manage our exposure to market risk through our regular operating and financial activities and, to the extent we deem appropriate, through the use of derivative financial instruments.
−Removed: We employ derivative financial instruments as risk management tools and not for speculative or trading purposes.
+Added: We have employed derivative financial instruments as risk management tools and not for speculative or trading purposes.
We monitor the use of derivative financial instruments through objective measurable systems, well-defined market and credit risk limits, and timely reports to senior management according to prescribed guidelines.
1 unchanged sentence
As a result, we consider the risk of counter-party default to be minimal.
+Added: There were no active derivative instruments as of January 2, 2022.
Interest Rate Market Risk Exposure
9 unchanged sentences
Our operating results are exposed to changes in exchange rates between the U.S.
−Removed: dollar and many other currencies, including the Euro, British pound sterling, Canadian dollar, Australian dollar, Thai baht and Chinese Renminbi.
+Added: dollar and many other currencies, including the Euro, British Pound sterling, Canadian dollar, Australian dollar and Chinese Renminbi.
When the U.S.
4 unchanged sentences
dollars on a consolidated basis, foreign currency exchange fluctuations could have a translation impact on our financial position.
−Removed: At January 3, 2021, we recognized a $52.8 million decrease in our accumulated other comprehensive loss – foreign currency translation adjustment account compared with December 29, 2019, because of the strengthening of the Euro, British pound sterling, Australian dollar, and Chinese Renminbi against the U.S.
+Added: To mitigate the impact of fluctuations in foreign currency exchange rates, we may enter into derivative transactions from time to time, such as forward contracts and foreign currency options.
+Added: There were no active foreign currency derivative instruments as of January 2, 2022.
+Added: During 2021, we recognized a $40.1 million increase in our accumulated other comprehensive loss – foreign currency translation adjustment account compared with January 3, 2021, because of the strengthening of the Euro, British Pound sterling, Australian dollar, and Chinese Renminbi against the U.S.
dollar in 2021.
6 unchanged sentences
The differences are the hypothetical gains or losses associated with each type of risk.
+Added: Tab le of Contents
Interest Rate Risk
As discussed above, our Syndicated Credit Facility is comprised of a combination of term loan and revolving loan borrowings.
−Removed: The following table summarizes our market risks associated with our variable rate debt obligations under the Syndicated Credit Facility as of January 3, 2021.
+Added: The following table summarizes our market risks associated with our variable rate debt obligations under the Syndicated Credit Facility and fixed rate Senior Notes debt as of January 2, 2022.
For debt obligations, the table presents principal cash flows by year of maturity.
4 unchanged sentences
Fixed Rate — — — — 300,000 300,000 315,039
−Removed: Our weighted average interest rate, including the effect of any active interest rate swaps, for our outstanding borrowings under the Syndicated Credit Facility as of January 3, 2021 and December 29, 2019 was 1.89% and 3.27%, respectively.
+Added: Our weighted average interest rate for our outstanding borrowings under the Syndicated Credit Facility as of January 2, 2022 and January 3, 2021 was 1.91% and 1.89%, respectively.
An increase in our effective interest rate of 1% on our variable rate debt would increase annual interest expense by approximately $2.3 million.
We will continue to review our exposure to interest rate fluctuations and evaluate whether we should continue to manage such exposures through any future interest rate swap transactions.
+Added: The carrying value of the Company’s borrowings under our Syndicated Credit Facility approximates fair value as the Facility bears variable interest rates that are similar to existing market rates.
Based on a hypothetical immediate 100 basis point increase in interest rates, with all other variables held constant, the fair value of our fixed rate long-term debt would be impacted by a net decrease of $10.8 million.
2 unchanged sentences
As of January 2, 2022, a 10% decrease or increase in the levels of foreign currency exchange rates against the U.S.
−Removed: dollar, with all other variables held constant, would result in a decrease in the fair value of our short-term financial instruments (primarily cash, accounts receivable and accounts payable) of $11.9 million or an increase in the fair value of our financial instruments of $14.6 million, respectively.
+Added: dollar, with all other variables held constant, would result in a decrease in the fair value of our short-term financial instruments (primarily cash, accounts receivable and accounts payable) of approximately $11.3 million or an increase in the fair value of our financial instruments of approximately $13.8 million, respectively.
As the impact of offsetting changes in the fair market value of our net foreign investments is not included in the sensitivity model, these results are not indicative of our actual exposure to foreign currency exchange risk.
+Added: Tab le of 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.