3 unchanged sentences
Foreign Currency Exchange Rate Risk
−Removed: A significant portion of our customers are outside the United States and our products are generally priced in U.S.
+Added: A significant portion of our customers are outside the United States, while our financial statements are denominated, and our products are generally priced in U.S.
A strong U.S.
Dollar may result in pricing pressure for our customers that are located outside the United States and that conduct their businesses in currencies other than the U.S.
−Removed: Such pricing pressure has caused, and could continue to cause, some of our customers to ask for discounted prices, delay purchasing decisions, consider moving to in-sourcing supply of components or migrate to lower cost alternatives.
−Removed: In addition, because our business is global and some payments may be made in local currency, fluctuations in foreign currency exchange rates can impact our revenues and expenses and the profitability in U.S.
+Added: Such pricing pressure has caused, and could continue to cause, some of our customers to ask for discounted prices, delay purchasing decisions, consider moving to in-sourcing supply of components or migrating to lower cost alternatives.
+Added: Dollar may result in our products becoming more attractively priced on a U.S.
+Added: Dollar basis compared to our competitors.
+Added: In addition, because our business is global and some payments may be made in local currency, fluctuations in foreign currency exchange rates can impact our revenues and expenses and/or the profitability in U.S.
Dollars of products and services that we provide in foreign markets.
We may enter into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks associated with certain existing assets and liabilities, and net investments in foreign subsidiaries.
−Removed: We generally hedge portions of foreign currency exposure on the balance sheet, typically for one month.
+Added: We generally hedge portions of forecasted foreign currency exposure, typically for one to three months.
In addition, we hold a cross-currency swap between the Euro and U.S.
3 unchanged sentences
Dollars to settle this obligation.
−Removed: However, we may choose not to hedge certain foreign exchange exposures for a
−Removed: variety of reasons including, but not limited to, accounting considerations or the prohibitive economic cost of hedging particular exposures.
+Added: However, we may choose not to hedge certain foreign exchange exposures for a variety of reasons including, but not limited to, accounting considerations or the prohibitive economic cost of hedging particular exposures.
Credit and Counterparty Risk
1 unchanged sentence
Our cash and cash equivalents may be exposed to a concentration of credit risk and we may also be exposed to credit risk and interest rate risk to the extent that we enter into credit facilities.
−Removed: We perform ongoing credit evaluations of our customers and we maintain what we believe to be strong credit controls in evaluating and granting customer credit, including performing ongoing evaluations of our customers’ financial condition and creditworthiness and often using letters of credit and requiring industrial customers to provide a down payment.
+Added: We perform ongoing credit evaluations of our customers and we maintain what we believe to be strong credit controls in evaluating and granting customer credit, including performing ongoing evaluations of our customers’ financial condition and creditworthiness and often using letters of credit and requiring certain industrial customers to provide a down payment.
Interest Rate Risk
−Removed: In June 2020, we issued the Convertible Notes with an aggregate principal amount of $200 million.
−Removed: We carry the Convertible Notes at face value less the unamortized debt discount and issuance costs on our consolidated balance sheet.
−Removed: The Convertible Notes have a fixed interest rate;
−Removed: therefore, we have no financial statement risk associated with changes in interest rates with respect to the Convertible Notes.
−Removed: The fair value of the Convertible Notes changes when certain factors such as the market price of our stock or market interest rates change.
−Removed: At July 3, 2020, we had total borrowings under our Credit Agreement of $260.5 million (net of deferred loan costs).
−Removed: Borrowings under our Credit Agreement bear interest at floating interest rates.
−Removed: As a result, we are exposed to fluctuations in interest rates to the extent of our borrowings under the Credit Agreement.
−Removed: As part of our overall risk management program, we entered into several interest rate swaps designed as cash flow hedges, to hedge the floating LIBOR components of our interest rate which represented a notional value of $241.9 million of our debt as of July 3, 2020.
−Removed: See Note 7, “Financial Derivatives and Hedging Activities” for further information on hedging activities.
−Removed: Excluding the amount of our borrowings that is subject to fixed interest rates under our interest rate swaps and Convertible Notes, and assuming the current level of borrowings remained the same, we estimate that our interest expense would change by approximately $0.2 million annually for each one percentage point change in the average interest rate under our borrowings.
+Added: Borrowings under our ABL Facility bear interest at floating interest rates.
+Added: At January 1, 2021, we had no borrowings subject to floating interest rates.
+Added: Borrowings, of the notes to our condensed consolidated financial statements for further information.
Commodity Price Risk
2 unchanged sentences
We try to protect against such volatility through various business strategies.
−Removed: During the three months ended July 3, 2020, we did not have any commodity derivative instruments in place to manage our exposure to price changes.
+Added: During the three months ended January 1, 2021, we did not have any commodity derivative instruments in place to manage our exposure to price changes.
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.