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 have employed derivative financial instruments as risk management tools and not for speculative or trading purposes.
+Added: From time to time, we employ 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.
−Removed: There were no active derivative instruments as of January 1, 2023.
+Added: There were no active derivative instruments as of December 31, 2023.
Interest Rate Market Risk Exposure
1 unchanged sentence
To mitigate the impact of fluctuations in interest rates, our management monitors interest rates and has developed and implemented a policy to maintain the percentage of fixed and variable rate debt within certain parameters, subject to approval by our Board of Directors.
−Removed: In 2017 and 2019, the Company entered into interest rate swap transactions with regard to a portion of its term loan debt.
−Removed: The Company’s interest rate swaps were designated and qualified as cash flow hedges of forecasted interest payments.
−Removed: Both of the Company’s interest rate swaps were terminated in the fourth quarter of 2020.
+Added: In addition, from time to time, we may enter into derivative transactions, such as interest rate swaps, in order to manage exposure to interest rate fluctuations.
+Added: There were no active interest rate derivative instruments as of December 31, 2023.
Foreign Currency Exchange Market Risk Exposure
11 unchanged sentences
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.
−Removed: There were no active foreign currency derivative instruments as of January 1, 2023.
−Removed: During 2022, we recognized a $38.3 million increase in our accumulated other comprehensive loss – foreign currency translation adjustment account compared with January 2, 2022, because of the weakening of the Euro, British Pound sterling, Australian dollar, and Chinese Renminbi against the U.S.
−Removed: dollar in 2022.
+Added: There were no active foreign currency derivative instruments as of December 31, 2023.
+Added: During 2023, we recognized a $19.2 million decrease in our accumulated other comprehensive loss – foreign currency translation adjustment account compared with January 1, 2023, primarily due to the strengthening of the Euro against the U.S.
+Added: dollar in 2023, partially offset by the weakening of the Australian dollar and Chinese Renminbi against the U.S.
Sensitivity Analysis
2 unchanged sentences
The market value of instruments affected by interest rate and foreign currency exchange rate risk is computed based on the present value of future cash flows as impacted by the changes in the rates attributable to the market risk being measured.
−Removed: The discount rates used for the present value computations were selected based on market interest and foreign currency exchange rates in effect at January 1, 2023.
+Added: The discount rates used for the present value computations were selected based on market interest and foreign currency exchange rates in effect at December 31, 2023.
The values that result from these computations are then compared with the market values of the financial instruments.
The differences are the hypothetical gains or losses associated with each type of risk.
−Removed: Ta b le of Contents
Interest Rate Risk
As discussed above, our 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 Facility and fixed rate Senior Notes debt as of January 1, 2023.
+Added: The following table summarizes our market risks associated with our variable rate debt obligations under the Facility and fixed rate Senior Notes debt as of December 31, 2023.
For debt obligations, the table presents principal cash flows by year of maturity.
−Removed: Rate-Sensitive Liabilities 2023 2024 2025 2026 Thereafter Total Fair Value
+Added: Rate-Sensitive Liabilities 2024 2025 2026 2027 2028 Total Fair Value
(in thousands)
2 unchanged sentences
Fixed Rate — — — — 300,000 300,000 281,991
−Removed: Our weighted average interest rate for our outstanding borrowings under the Facility as of January 1, 2023 and January 2, 2022 was 5.78% and 1.91%, respectively.
+Added: Our weighted average interest rate for our outstanding borrowings under the Facility as of December 31, 2023 and January 1, 2023 was 6.61% and 5.78%, respectively.
An increase in our effective interest rate of 1% on our variable rate debt would increase annual interest expense by approximately $1.2 million.
4 unchanged sentences
Foreign Currency Exchange Rate Risk
−Removed: As of January 1, 2023, a 10% decrease or increase in the levels of foreign currency exchange rates against the U.S.
+Added: As of December 31, 2023, a 10% decrease or increase in the levels of foreign currency exchange rates against the U.S.
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 $12.1 million or an increase in the fair value of our financial instruments of approximately $14.8 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.
−Removed: Ta b 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.