−Removed: Quantitative and Qualitative
−Removed: Disclosures About Market Risk.
−Removed: All activity as of
−Removed: December 31, 2019, related to our formation and the initial public offering and identifying and evaluating prospective acquisition
−Removed: targets for an initial business combination.
−Removed: Following the consummation
−Removed: of our initial public offering, the portion of the net proceeds of the initial public offering and the sale of the private placement
−Removed: warrants held in the trust account were invested in U.S.
−Removed: government securities, within the meaning set forth in Section 2(a)(16)
−Removed: of the Investment Company Act, with a maturity of 180 days or less or in any open-ended investment company that holds itself
−Removed: out as a money market fund selected by us meeting the conditions of paragraphs (c)(2), (c)(3) and (c)(4) of Rule 2a-7 of the
−Removed: Investment Company Act, as determined by us, until the earlier of:
−Removed: (i) the completion of a business
−Removed: combination and (ii) the distribution of the trust account.
−Removed: Due to the short-term nature of these investments, we believe
−Removed: there will be no associated material exposure to interest rate risk.
−Removed: December 31, 2019, $451,020,841 was held in the trust account for the purposes of consummating an initial business combination.
−Removed: If we complete an initial business combination within 24 months after the consummation of our initial public offering, funds in
−Removed: the trust account will be used to pay for the business combination, redemptions of Class A ordinary shares, if any, the deferred
−Removed: underwriting compensation and deferred legal costs of $15,450,000, and expenses related to the business combination.
−Removed: remaining will be made available to us to provide working capital to finance our operation.
−Removed: We have not engaged
−Removed: in any hedging activities since our inception.
−Removed: We do not expect to engage in any hedging activities with respect to the market
−Removed: risk to which we are exposed.
−Removed: Financial Statements and
−Removed: Supplementary Data.
−Removed: This information appears
−Removed: following Item 16 of this Annual Report and is incorporated herein by reference.
−Removed: Changes in and Disagreements
−Removed: with Accountants on Accounting and Financial Disclosure.
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
+Added: We are exposed to certain commodity and interest rate risks as part of our ongoing business operations.
+Added: We may use derivative financial instruments, where appropriate, to manage some of these risks related to interest rates.
+Added: We do not use derivatives for trading purposes.
+Added: Commodity Risk
+Added: We purchase certain raw materials that are subject to price volatility caused by weather, market conditions, growing and harvesting conditions, governmental actions and other factors beyond our control.
+Added: Our most significant raw material requirements include potatoes, oil, flour, wheat, corn, cheese, spices, and seasonings.
+Added: We also purchase packaging materials that are subject to price volatility.
+Added: In the normal course of business, in order to mitigate the risks of volatility in commodity markets to which we are exposed, we enter into forward purchase agreements with certain suppliers based on market prices, forward price projections and expected usage levels.
+Added: Amounts committed under these forward purchase agreements are discussed in Item 7.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations under the section “Derivative Financial Instruments.”
+Added: Interest Rate Risk
+Added: Our variable-rate debt obligations incur interest at floating rates based on changes in the LIBOR rate.
+Added: To manage exposure to changing interest rates, we selectively enter into interest rate swap agreements to maintain a desired proportion of fixed to variable-rate debt.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations under the section “Derivative Financial Instruments” for further information related to our interest rate swap agreements.
+Added: While these interest rate swap agreements fixed a portion of the interest rate at a predictable level, interest expense would have been $0.8 million lower and equivalent without these swaps during the year ended January 3, 2021.
+Added: Including the effect of the interest rate swap agreement, the weighted average interest rate was 4.4% and 5.7%, respectively, as of January 3, 2021 and December 29, 2019.
+Added: A 1% increase in the LIBOR rate would have resulted in an additional $5.7 million of interest expense during the fiscal year 2020.
+Added: We are exposed to credit risks related to our accounts and notes receivable.
+Added: We perform ongoing credit evaluations of our customers to minimize the potential exposure.
+Added: We experienced no material credit losses during the fiscal years of 2020 or 2019.
+Added: During the combined year ended January 3, 2021 and the year ended December 29, 2019, net bad deb t expense was $0.7 million and $0.2 million, respectiv ely.
+Added: Our reserve for potential future bad debt was $0.2 million as of January 3, 2021 and $1.4 million as of December 29, 2019.
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.