15 unchanged sentences
At inception, we designated the interest rate swap as a cash flow hedge and the fair value of the interest rate swap was zero.
−Removed: As of September 28, 2020, the fair value of the interest rate swap was recorded as a liability and as a component of other long-term liabilities in the amount of $17.5 million.
−Removed: No ineffectiveness was recognized for the quarter and three quarters ended September 28, 2020.
−Removed: During the quarter and three quarters ended September 28, 2020, the interest rate swap increased interest expense by $2.7 million and $6.2 million, respectively.
−Removed: See Liquidity and Capital Resources and Long-term Debt and Letters of Credit appearing in Item 2 of this Quarterly Report on Form 10-Q for further discussion of our financing facilities and capital structure.
−Removed: As of September 28, 2020, approximately 93.1% of our total debt was based on fixed rates.
−Removed: Based on our borrowings as of September 28, 2020, an assumed 100 basis point increase in variable rates would cause our annual interest cost to increase by $0.8 million and an assumed 100 basis point decrease in variable rates would cause our annual interest cost to decrease by $0.1 million.
−Removed: On July 27, 2017, the Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021, which may affect us adversely.
−Removed: If LIBOR is discontinued, we may need to renegotiate the terms of certain credit instruments, which utilize LIBOR as a benchmark in determining the interest rate, to replace LIBOR with the new standard that is established.
−Removed: There is currently no definitive information regarding the future utilization of LIBOR or of any particular replacement rate.
−Removed: As such, the potential effect of any such event on our cost of capital and net investment income cannot yet be determined.
+Added: As of March 29, 2021, the fair value of the interest rate swap was recorded as a liability and as a component of other long-term liabilities in the amount of $12.6 million.
+Added: No ineffectiveness was recognized for the quarter ended March 29, 2021.
+Added: During the quarter ended March 29, 2021, the interest rate swap increased interest expense by $2.7 million.
+Added: See Liquidity and Capital Resources and Long-term Debt and Letters of Credit appearing in Part I, Item 2 of this Quarterly Report on Form 10-Q for further discussion of our financing facilities and capital structure.
+Added: As of March 29, 2021, approximately 96.2% of our total debt was based on fixed rates.
+Added: Based on our borrowings as of March 29, 2021, an assumed 100 basis point increase in variable rates would cause our annual interest cost to increase by $0.4 million and an assumed 100 basis point decrease in variable rates would cause our annual interest cost to decrease by $0.1 million.
+Added: On July 27, 2017, the Financial Conduct Authority (FCA) announced the desire to phase out the use of LIBOR by the end of 2021.
+Added: More recently, on March 5, 2021, the FCA announced that all LIBOR settings will either cease to be provided by any administrator or no longer be representative.
+Added: Specifically, this will occur immediately after December 31, 2021, in the case of all Sterling, Euro, Swiss franc and Japanese yen (JPY) settings, and the 1-week, and 2-month U.S.
+Added: dollar settings; and immediately after June 30, 2023, in the case of the remaining U.S.
+Added: dollar settings.
+Added: However, U.S.
+Added: banking regulators have made clear that U.S.-dollar LIBOR originations should end by no later than December 31, 2021, and that new LIBOR originations prior to that date must provide for an alternative reference rate or a hardwired fallback.
+Added: In accordance with recommendations from the Alternative Reference Rates Committee (ARRC), U.S.-dollar LIBOR is expected to be replaced with the Secured Overnight Financing Rate (SOFR), a new index calculated by reference to short-term repurchase agreements for U.S.
+Added: Treasury securities.
+Added: Further, the International Swaps and Derivatives Association, Inc.
+Added: recently announced fallback language for LIBOR-referencing derivatives contracts that also provides for SOFR as the primary replacement rate in the event of a LIBOR cessation.
+Added: The market transition from LIBOR to SOFR is expected to be complicated, including the development of term SOFR rates and credit adjustments to accommodate differences between LIBOR and SOFR.
+Added: During the transition period, LIBOR may exhibit increased volatility or become less representative, and the overnight Treasury repurchase market underlying SOFR may also experience disruptions from time to time, which may result in unexpected fluctuations in SOFR.
+Added: The use of an alternative reference rate such as SOFR (and the transition to that rate) will likely create challenges for us with respect to our asset liability management activities including, but not limited to, managing the transition-related basis risk.
+Added: While market activity in SOFR-linked financial instruments has continued to increase, there can be no assurance that SOFR-linked products will be available to meet our needs in a timely manner.
+Added: Due to these uncertainties, we are unable to predict at this time the impact the transition from LIBOR to an alternative reference rate (or rates) could have on our business, risk management practices (including, but not limited to, our hedging activities), financial condition and results of operations.
Foreign Currency Risks
10 unchanged sentences
Our foreign subsidiaries may at times enter into forward exchange contracts to manage foreign currency risks in relation to certain purchases of machinery denominated in foreign currencies other than our functional currencies.
−Removed: The notional amount of the foreign exchange contracts as of September 28, 2020 and December 30, 2019 was approximately $2.0 million (Japanese Yen (JPY) 209.0 million) and $2.0 million (JPY 215.8 million), respectively.
+Added: The notional amount of the foreign exchange contracts as of March 29, 2021 and December 28, 2020 was approximately $1.9 million (JPY 196.3 million) and $1.2 million (JPY 125.0 million), respectively.
We designated certain of these foreign exchange contracts as cash flow hedges.
−Removed: The table below presents information about certain of the foreign currency forward contracts as of September 28, 2020 and December 30, 2019:
−Removed: As of September 28, 2020
−Removed: As of December 30, 2019
−Removed: Average Contract
−Removed: Rate or Strike
−Removed: Average Contract
−Removed: Rate or Strike
−Removed: (In thousands)
−Removed: Receive foreign currency/pay USD
−Removed: Estimated fair value, net asset / (liability)
Debt Instruments
−Removed: The table below presents information about certain of our debt instruments as of September 28, 2020:
−Removed: As of September 28, 2020
+Added: The table below presents the fiscal calendar maturities of long-term debt through 2025 and thereafter of our debt instruments as of March 29, 2021:
+Added: As of March 29, 2021
Remaining 2021
5 unchanged sentences
Interest Rate Swap Contracts
−Removed: As of September 28, 2020, the fair value of the interest rate swap was recorded as a liability in the amount of $17,461.
−Removed: The table below presents information regarding our interest rate swaps during the three quarters ended September 28, 2020:
−Removed: Three Quarters Ended
−Removed: September 28, 2020
+Added: As of March 29, 2021, the fair value of the interest rate swap was recorded as a liability in the amount of $12.6 million.
+Added: The table below presents information regarding our interest rate swap during the quarter ended March 29, 2021:
+Added: Quarter Ended
+Added: March 29, 2021
(In thousands, except interest rates)
4 unchanged sentences
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.