1 unchanged sentence
In the normal course of business operations, we are exposed to risks associated with fluctuations in interest rates, foreign currency exchange rates, and commodity prices.
−Removed: We address these risks through controlled risk management that includes the use of derivative financial instruments to economically hedge or reduce these exposures.
+Added: We seek to address these risks through controlled risk management that includes, from time to time, the use of derivative financial instruments to economically hedge or reduce these exposures.
We do not enter into derivative financial instruments for trading or speculative purposes.
We have not experienced any losses to date on any derivative financial instruments due to counterparty credit risk.
−Removed: To ensure the adequacy and effectiveness of our interest rate, foreign exchange, and commodity price hedge positions, we continually monitor our interest rate swap positions, foreign exchange forward positions, and commodity hedge price positions, both on a stand-alone basis and in conjunction with their underlying interest rate, foreign currency, and commodity price exposures, from an accounting and economic perspective.
−Removed: However, given the inherent limitations of forecasting and the anticipatory nature of the exposures intended to be hedged, we cannot be assured that such programs will offset more than a portion of the adverse financial impact resulting from unfavorable movements in either interest, foreign exchange rates, or commodity prices.
+Added: To ensure the adequacy and effectiveness of our foreign exchange and commodity price hedge positions, we continually monitor our foreign exchange forward positions and commodity hedge price positions, both on a stand-alone basis and in conjunction with their underlying foreign currency and commodity price exposures, from an accounting and economic perspective.
+Added: However, given the inherent limitations of forecasting and the anticipatory nature of the exposures intended to be hedged, we cannot be assured that such programs will offset more than a portion of the adverse financial impact resulting from unfavorable movements in either foreign exchange rates or commodity prices.
In addition, the timing of the accounting for recognition of gains and losses related to mark-to-market instruments for any given period may not coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may adversely affect our consolidated operating results and financial position.
4 unchanged sentences
Fluctuations in interest rates can also lead to significant fluctuations in the fair value of our debt obligations.
−Removed: On May 15, 2018, we entered into a four-year pay-fixed, receive floating (1-month LIBOR), interest rate swap arrangement with a notional amount of $400.0 million for the period beginning June 1, 2018 and ending on June 1, 2022.
−Removed: Under the terms of the interest rate swap, we pay a fixed rate of 2.84% against the first interest payments of a portion of our LIBOR-based debt and receive floating 1-month LIBOR during the swap period.
+Added: On May 15, 2018, we entered into a four-year pay-fixed, receive floating (1-month LIBOR), interest rate swap arrangement with a notional amount of $400.0 million for the period beginning June 1, 2018 and ended on June 1, 2022.
+Added: During the term of the interest rate swap, we paid a fixed rate of 2.84% against the first interest payments of a portion of our LIBOR-based debt and received floating 1-month LIBOR during the swap period.
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 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.
−Removed: No ineffectiveness was recognized for the quarter ended April 4, 2022.
−Removed: During the quarter ended April 4, 2022, the interest rate swap increased interest expense by $2.7 million.
−Removed: 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.
−Removed: We currently do not expect to enter into a new arrangement after the arrangement described above ends.
+Added: No ineffectiveness was recognized for the quarter and two quarters ended July 4, 2022.
+Added: During the quarter and two quarters ended July 4, 2022, the interest rate swap increased interest expense by $1.4 million and $4.1 million, respectively.
+Added: After June 1, 2022, our $400.0 million LIBOR-based variable debt is 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 interest rate swap arrangement.
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 April 4, 2022, approximately 96.2% of our total debt was based on fixed rates.
−Removed: 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.
−Removed: 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.
+Added: As of July 4, 2022, approximately 53.4% of our total debt was based on fixed rates.
+Added: Based on our borrowings as of July 4, 2022, an assumed 100 basis point change in variable rates would cause our annual interest cost to change by $4.4 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.
15 unchanged sentences
Dollar as a normal part of our financial reporting process.
−Removed: Most of our foreign operations have the U.S.
+Added: Most of our foreign
+Added: 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).
5 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 April 4, 2022 was approximately $1.6 million (EUR 1.4 million).
+Added: The notional amount of the foreign exchange contracts as of July 4, 2022 was approximately $1.6 million (EUR 1.4 million).
There were no foreign exchange contracts as of January 3, 2022.
7 unchanged sentences
We are hedging copper as a proxy for hedging laminate.
−Removed: 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.
−Removed: 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.
+Added: As of July 4, 2022, we had commodity contracts with a notional quantity of (i) 630 metric tonnes for the period beginning June 30, 2022 and ending on October 3, 2022, (ii) 700 metric tonnes for the period beginning October 4, 2022 and ending on January 3, 2023, (iii) 700 metric tonnes for the period beginning January 1, 2023 and ending on March 31, 2023, and (iv) 700 metric tonnes for the period beginning April 1, 2023 and ending on June 30, 2023.
+Added: As of July 4, 2022, the fair value of the commodity contracts was recorded as a liability in the amount of $3.5 million and included as a component of other current liabilities.
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 2026 and thereafter of our debt instruments as of April 4, 2022:
−Removed: As of April 4, 2022
+Added: The table below presents the fiscal calendar maturities of long-term debt through 2026 and thereafter of our debt instruments as of July 4, 2022:
+Added: As of July 4, 2022
Remaining 2022
4 unchanged sentences
Interest rate swap effectively fixed $400,000 of variable rate debt through June 1, 2022.
+Added: After June 1, 2022, the $400,000 variable rate debt is more sensitive to fluctuations in interest rates due to the expiration of the interest rate swap arrangement.
Interest Rate Swap Contracts
−Removed: 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.
−Removed: The table below presents information regarding our interest rate swap during the quarter ended April 4, 2022:
−Removed: Quarter Ended
−Removed: April 4, 2022
+Added: Our interest rate swap arrangement ended on June 1, 2022.
+Added: The table below presents information regarding our interest rate swap during the two quarters ended July 4, 2022:
+Added: Two Quarters Ended
(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.