1 unchanged sentence
We do not enter into derivative financial instruments for trading or speculation purposes.
−Removed: In the normal course of business, we have exposure to both interest rate risk and foreign currency transaction and translation risk, primarily related to the Canadian and Australian dollar and the British Pound.
+Added: In the normal course of business, we have exposure to both interest rate risk and foreign currency transaction and translation risk, primarily related to the Canadian and Australian dollars, the Euro, and the British Pound.
We are exposed to interest rate risk under our Amended Credit Agreement.
9 unchanged sentences
The Facility matures on February 18, 2027.
−Removed: At October 2, 2022, we had $258.8 million in outstanding borrowings under the Amended Credit Agreement, which was comprised of $243.8 million under the Amended Term Loan Facility and $15.0 million under the Amended Revolving Credit Facility.
+Added: At October 1, 2023, we had $320 million in outstanding borrowings under the Amended Credit Agreement, which was all under the New Term Loan Facility, and no borrowings under the Amended Revolving Credit Facility.
The year-to-date weighted-average interest rate of the outstanding borrowings during fiscal 2023 was 5.71%.
1 unchanged sentence
The objective of these interest rate swaps was to eliminate the variability of our cash flows on the amount of interest expense we pay under our Credit Agreement.
−Removed: As of October 2, 2022, the notional principal of our outstanding interest swap agreements was $200.0 million ($40.0 million each.) Our year-to-date average effective interest rate on borrowings outstanding under the Credit Agreement, including the effects of interest rate swap agreements, at October 2, 2022, was 3.60%.
+Added: The five swaps expired on July 31, 2023.
+Added: Our year-to-date average effective interest rate on borrowings outstanding under the Credit Agreement, including the effects of interest rate swap agreements, at October 1, 2023, was 5.37%.
For more information, see Note 14, “Derivative Financial Instruments” of the “Notes to Consolidated Financial Statements” in Item 8.
−Removed: Most of our transactions are in U.S.
−Removed: however, some of our subsidiaries conduct business in foreign currencies, primarily the Canadian and Australian dollar and the British Pound.
+Added: The majority of our transactions are in U.S.
+Added: however, some of our subsidiaries conduct business in foreign currencies, primarily the Canadian and Australian dollars, the Euro, and British Pound.
Therefore, we are subject to currency exposure and volatility because of currency fluctuations.
We attempt to minimize our exposure to these fluctuations by matching revenue and expenses in the same currency for our contracts.
−Removed: We reported $0.2 million and $1.4 million of foreign currency losses in fiscal 2022 and 2021, respectively, in “Selling, general and administrative expenses” on our consolidated statements of income.
+Added: We reported $0.1 million of foreign currency gains in fiscal 2023 and $0.2 million of foreign currency losses in fiscal 2022 in “Selling, general and administrative expenses” on our consolidated statements of income.
We have foreign currency exchange rate exposure in our results of operations and equity primarily because of the currency translation related to our foreign subsidiaries where the local currency is the functional currency.
4 unchanged sentences
For fiscal 2023 and 2022, 36.7% and 31.0% of our consolidated revenue, respectively, was generated by our international business.
−Removed: For fiscal 2022, the effect of foreign exchange rate translation on the consolidated balance sheets was a decrease in equity of $94.9 million compared to an increase in equity of $30.6 million in fiscal 2021.
−Removed: These amounts were recognized as an adjustment to equity through othe r comprehensive income.
−Removed: In the anticipation of the planned acquisition of RPS, we entered into a forward contract during the fourth quarter of fiscal 2022 to acquire GBP 714.0 million at a rate of 1.0852 for a total of USD 774.8 million.
−Removed: The contract matures on December 30, 2022.
+Added: For fiscal 2023, the effect of foreign exchange rate translation on the consolidated balance sheets was an increase in equity of $12.6 million compared to a decrease in equity of $94.9 million in fiscal 2022.
+Added: These amounts were recognized as an adjustment to equity through other comprehensive income.
+Added: In the fourth quarter of fiscal 2022, we entered into a forward contract to acquire GBP 714.0 million at a rate of 1.0852 for a total of USD 774.8 million that was integrated with our plan to acquire RPS.
+Added: This contract matured on December 30, 2022.
+Added: On December 28, 2022, we entered into an extension of the integrated forward contract to acquire GBP 714.0 million at a rate of 1.086 for a total of USD 775.4 million, extending the maturity date to January 23, 2023, the closing date of the RPS acquisition.
Although an effective economic hedge of our foreign exchange risk related to this transaction, the forward contract did not qualify for hedge accounting.
−Removed: As a result, the forward contract is marked-to-market with changes in fair value recognized in earnings each period.
+Added: As a result, the forward contract was marked-to-market with changes in fair value recognized in earnings each period.
The intrinsic value of the forward contract was immaterial at inception as the GBP/USD spot and forward exchange rates were essentially the same.
−Removed: The fair value of the forward contract at October 2, 2022 was $19.9 million, which resulted in an unrealized gain of the same amount in the fourth quarter fiscal 2022 and is reflected in “Other income" on the consolidated income statement for fiscal 2022.
−Removed: The related $19.9 million asset is reported in "Prepaid expenses and other current assets" on the consolidated balance sheet at October 2, 2022.
+Added: The fair value of the forward contract at October 2, 2022 was $19.9 million, and an unrealized gain of the same amount was recognized in our fourth quarter of fiscal 2022 results.
+Added: On January 23, 2023, the forward contract was settled for cash proceeds of $109.3 million and we recognized additional gains of $89.4 million in fiscal 2023.
+Added: All gains related to this transaction were reported in “Other non-operating income" on our consolidated income statements for the respective periods.
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.