QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our exposure to changes in interest rates results from our
−Removed: borrowing activities.
−Removed: In the event interest rates were to move by 1%, our yearly interest expense would increase or decrease by approximately
−Removed: $0.2 million assuming our average borrowing levels remained constant.
−Removed: As of March 26, 2022, $80.0 million was available under our revolving
−Removed: credit facility, of which $39.9 million was outstanding and included in long-term debt on the Consolidated Balance Sheets.
−Removed: above under “Liquidity and Capital Resources,” we also have a $15.0 million (original principal) term loan.
−Removed: The 2018 Term
−Removed: Loan is considered a fixed interest rate loan.
−Removed: As of March 26, 2022, $8.5 million was outstanding on the 2018 Term Loan and was included
−Removed: in long-term debt and current portion of long-term debt on the Consolidated Balance Sheets.
−Removed: The 2018 Term Loan requires total (principal
−Removed: and interest) repayments of $0.2 million per month.
−Removed: At our option, we borrow from our revolving credit facility
−Removed: at the variable one-month LIBOR or at a fixed rate for a designated period at the LIBOR (subject to a 1% floor during the first quarter
−Removed: of fiscal year 2022 and a 0.25% floor for subsequent periods) corresponding to such period, in each case, plus a margin.
−Removed: rate margin is determined on a quarterly basis based upon our calculated leverage ratio.
−Removed: Our interest rate during fiscal year 2022 for
−Removed: our revolving credit facility ranged from 1.0% to 2.2%.
−Removed: Interest on outstanding borrowings on the 2018 Term Loan accrued at a fixed rate
−Removed: of 4.15% over the term of the loan during the first quarter of fiscal year 2022 and 3.90% over the term of the loan for subsequent periods.
+Added: Our exposure to changes in interest rates results from our borrowing activities.
+Added: In the event interest rates were to move by 1%, our yearly interest expense would increase or decrease by approximately $0.4 million assuming our average borrowing levels remained constant.
+Added: As of March 25, 2023, $80.0 million was available under our revolving credit facility, of which $42.7 million was outstanding and included in long-term debt on the Consolidated Balance Sheets.
+Added: As described above under “Liquidity and Capital Resources,”
+Added: we also have a $15.0 million (original principal) term loan.
+Added: The 2018 Term Loan is considered a fixed interest rate loan.
+Added: As of March 25, 2023, $6.4 million was outstanding on the 2018 Term Loan and was included in long-term debt and current portion of long-term debt on the Consolidated Balance Sheets.
+Added: The 2018 Term Loan requires total (principal and interest) repayments of $0.2 million per month.
+Added: At our option, we borrow from our revolving credit facility at the variable one-month LIBOR or at a fixed rate for a designated period at the LIBOR (subject to a 1.0% floor during the first quarter of fiscal year 2022 and a 0.25% floor for subsequent periods) corresponding to such period, in each case, plus a margin.
+Added: Our interest rate margin is determined on a quarterly basis based upon our calculated leverage ratio.
+Added: Our interest rate during fiscal year 2023 for our revolving credit facility ranged from 1.6% to 6.5%.
+Added: Interest on outstanding borrowings on the 2018 Term Loan accrued at a fixed rate of 4.15% over the term of the loan during the first quarter of fiscal year 2022 and 3.90% over the term of the loan for subsequent periods.
Our revolving credit facility includes a mechanism for adoption of a different benchmark rate upon the discontinuation of LIBOR.
−Removed: 26, 2022, we had no hedging arrangements in place for our revolving credit facility to limit our exposure to upward movements in interest
+Added: On March 25, 2023, we had no hedging arrangements in place for our revolving credit facility to limit our exposure to upward movements in interest rates.
FOREIGN CURRENCY
−Removed: Approximately 90% of our total revenues for each of fiscal
−Removed: years 2022 and 2021 were denominated in U.S.
+Added: Approximately 90% of our total revenues for each of fiscal years 2023 and 2022 were denominated in U.S.
dollars, with the remainder denominated in Canadian dollars and Euros.
−Removed: A 10% change in the
−Removed: value of the Canadian dollar to the U.S.
+Added: A 10% change in the value of the Canadian dollar to the U.S.
dollar and the Euro to the U.S.
dollar would impact our revenue by approximately 1%.
−Removed: the relationship between the U.S.
+Added: We monitor the relationship between the U.S.
and Canadian currencies and the U.S.
−Removed: and Euro currencies on a monthly basis and adjust sales prices
−Removed: for products and services sold in Canadian dollars or Euros as we believe to be appropriate.
−Removed: We continually utilize short-term foreign exchange forward
−Removed: contracts to reduce the risk that future earnings denominated in Canadian dollars would be adversely affected by changes in currency exchange
−Removed: We do not apply hedge accounting and therefore the net change in the fair value of the contracts, which totaled a loss of less
−Removed: than $0.1 million during each of fiscal year 2022 and fiscal year 2021, was recognized as a component of other expense in the Consolidated
−Removed: Statements of Income.
−Removed: The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables
−Removed: denominated in Canadian dollars being hedged.
−Removed: On March 26, 2022, we had a foreign exchange contract, which matured in April 2022, outstanding
−Removed: in the notional amount of $3.3 million.
+Added: and Euro currencies on a monthly basis and adjust sales prices for products and services sold in Canadian dollars or Euros as we believe to be appropriate.
+Added: We continually utilize short-term foreign exchange forward contracts to reduce the risk that future earnings denominated in Canadian dollars would be adversely affected by changes in currency exchange rates.
+Added: We do not apply hedge accounting and therefore the net change in the fair value of the contracts, which totaled a gain of $0.4 million and a loss of less than $0.1 million during fiscal year 2023 and 2022, respectively, was recognized as a component of other expense in the Consolidated Statements of Income.
+Added: The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged.
+Added: On March 25, 2023, we had a foreign exchange contract, which matured in April 2023, outstanding in the notional amount of $2.5 million.
The foreign exchange contract was renewed in April 2023 and continues to be in place.
−Removed: use hedging arrangements for speculative purposes.
+Added: We do not use hedging arrangements for speculative purposes.
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.