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 27, 2021, the fair value of the interest rate swap was recorded as a liability in the amount of $7.4 million and included as a component of other current liabilities.
−Removed: No ineffectiveness was recognized for the quarter and three quarters ended September 27, 2021.
−Removed: During the quarter and three quarters ended September 27, 2021, the interest rate swap increased interest expense by $2.8 million and $8.3 million, respectively.
+Added: As of April 4, 2022, the fair value of the interest rate swap was recorded as a liability in the amount of $1.4 million and included as a component of other current liabilities.
+Added: No ineffectiveness was recognized for the quarter ended April 4, 2022.
+Added: During the quarter ended April 4, 2022, the interest rate swap increased interest expense by $2.7 million.
+Added: After June 1, 2022, our $400.0 million LIBOR-based variable debt will be more sensitive to fluctuations in interest rates due to the expiration of the interest rate swap arrangement.
+Added: We currently do not expect to enter into a new arrangement after the arrangement described above ends.
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.
−Removed: As of September 27, 2021, approximately 96.2% of our total debt was based on fixed rates.
−Removed: Based on our borrowings as of September 27, 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: As of April 4, 2022, approximately 96.2% of our total debt was based on fixed rates.
+Added: Based on our borrowings as of April 4, 2022, 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 $0.2 million.
+Added: However, without the swap arrangement described above, an assumed 100 basis point increase in variable rates would cause our annual interest cost to increase by $4.4 million and an assumed 100 basis point decrease in variable rates would cause our annual interest cost to decrease by $1.9 million.
On July 27, 2017, the Financial Conduct Authority (FCA) announced the desire to phase out the use of LIBOR by the end of 2021.
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.
−Removed: 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: Specifically, this occurred immediately after December 31, 2021, in the case of all Sterling, Euro (EUR), Swiss franc and Japanese yen settings, and the 1-week, and 2-month U.S.
dollar settings; and immediately after June 30, 2023, in the case of the remaining U.S.
1 unchanged sentence
However, U.S.
−Removed: 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 in existing contracts.
+Added: banking regulators have made it 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 in existing contracts.
On July 29, 2021, the Alternative Reference Rates Committee (ARRC) announced that it is now formally recommending CME Group’s forward-looking Secured Overnight Financing Rate term rates (SOFR Term Rates).
5 unchanged sentences
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.
−Removed: Foreign Currency Exchange Rate Risks
+Added: Foreign Currency Rate Risks
In the normal course of business, we are exposed to risks associated with fluctuations in foreign currency exchange rates related to transactions that are denominated in currencies other than our functional currencies, as well as the effects of translating amounts denominated in a foreign currency to the U.S.
Dollar as a normal part of our financial reporting process.
−Removed: Most of our foreign
−Removed: operations have the U.S.
+Added: Most of our foreign operations have the U.S.
Dollar as their functional currency, however, two of our China facilities utilize the Renminbi (RMB), which results in recognition of translation adjustments included as a component of other comprehensive income (loss).
1 unchanged sentence
Our primary foreign exchange exposure is to the RMB.
−Removed: Except for certain equipment purchases, we do not engage in hedging to manage foreign currency risk.
+Added: Except for certain equipment purchases, we do not engage in hedging to manage this foreign currency risk.
However, we may consider the use of derivatives in the future.
In general, our Chinese customers pay us in RMB, which partially mitigates this foreign currency exchange risk.
−Removed: We enter into foreign currency forward contracts to mitigate the impact of changes in foreign currency exchange rates and to reduce the volatility of purchases and other obligations generated in currencies other than our functional currencies.
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 27, 2021 and December 28, 2020 was approximately $1.2 million (JPY 132.3 million) and $1.2 million (JPY 125.0 million), respectively.
−Removed: We designated certain of these foreign exchange contracts as cash flow hedges.
+Added: The notional amount of the foreign exchange contracts as of April 4, 2022 was approximately $1.6 million (EUR 1.4 million).
+Added: There were no foreign exchange contracts as of January 3, 2022.
Commodity Price Risks
2 unchanged sentences
This may negatively affect our profitability.
−Removed: CCLs are made from epoxy resin, glass cloth and copper foil, all of which are seeing limited supply and resulting in increased prices.
+Added: CCLs are made from epoxy resin, glass cloth, and copper foil, all of which are seeing limited supply and increased prices.
We only buy a small amount of copper directly.
1 unchanged sentence
We are hedging copper as a proxy for hedging laminate.
−Removed: As of September 27, 2021, we had commodity contracts with a notional quantity of 500 metric tonnes each for the periods (i) beginning September 28, 2021 and ending on December 30, 2021, (ii) beginning January 4, 2022 and ending on March 31, 2022, and (iii) beginning April 5, 2022 and ending on June 29, 2022, and 630 metric tonnes for the period beginning June 30, 2022 and ending on October 3, 2022.
−Removed: As of September 27, 2021, the fair value of the commodity contracts was recorded as a liability in the amount of $65 and included as a component of other current liabilities.
+Added: As of April 4, 2022, we had commodity contracts with a notional quantity of (i) 500 metric tonnes for the period beginning April 5, 2022 and ending on June 29, 2022, (ii) 630 metric tonnes for the period beginning June 30, 2022 and ending on October 3, 2022, (iii) 700 metric tonnes for the period beginning October 4, 2022 and ending on January 3, 2023, and (iv) 700 metric tonnes for the period beginning January 1, 2023 and ending on March 31, 2023.
+Added: As of April 4, 2022, the fair value of the commodity contracts was recorded as an asset in the amount of $1.7 million and included as a component of prepaid expenses and other current assets.
We will continue to evaluate our commodity risks and may utilize commodity forward purchase contracts more frequently in the future.
Debt Instruments
−Removed: The table below presents the fiscal calendar maturities of long-term debt through 2025 and thereafter of our debt instruments as of September 27, 2021:
−Removed: As of September 27, 2021
+Added: The table below presents the fiscal calendar maturities of long-term debt through 2026 and thereafter of our debt instruments as of April 4, 2022:
+Added: As of April 4, 2022
Remaining 2022
3 unchanged sentences
US$ Fixed Rate
−Removed: Interest rate swap effectively fixed $400,000 of variable rate debt.
+Added: Interest rate swap effectively fixed $400,000 of variable rate debt through June 1, 2022.
Interest Rate Swap Contracts
−Removed: As of September 27, 2021, the fair value of the interest rate swap was recorded as a liability and as a component of other current liabilities in the amount of $7.4 million.
−Removed: The table below presents information regarding our interest rate swap during the three quarters ended September 27, 2021:
−Removed: Three Quarters Ended
−Removed: September 27, 2021
+Added: As of April 4, 2022, the fair value of the interest rate swap was recorded as a liability in the amount of $1.4 million.
+Added: The table below presents information regarding our interest rate swap during the quarter ended April 4, 2022:
+Added: Quarter Ended
+Added: April 4, 2022
(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.