6 unchanged sentences
The Company manages these risks by attempting to denominate contractual and other foreign arrangements in U.S.
−Removed: Under the provisions of FASB ASC Topic 815, Derivatives and Hedging ("ASC 815"), the Company is required to recognize all derivatives on the balance sheet at fair value.
+Added: The Company does not believe that there has been a material change in the nature of the Company’s primary market risk exposures, including the categories of market risk to which the Company is exposed and the particular markets that present the primary risk of loss to the Company.
+Added: As of the date of this Annual Report on Form 10-K, the Company does not know of any material change in the near-term in the general nature of its primary market risk exposure.
+Added: Under the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 815, Derivatives and Hedging ,, the Company is required to recognize all derivatives on the balance sheet at fair value.
Derivatives that are not qualifying hedges must be adjusted to fair value through earnings.
−Removed: If a derivative is a qualifying hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings.
+Added: If a derivative is a qualifying hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in accumulated other comprehensive income (loss) until the hedged item is recognized in earnings.
The Company conducts wholesale operations outside of the U.S.
3 unchanged sentences
wholesale operations in the normal course of business as well as to manage foreign currency translation exposure.
−Removed: At January 2, 2021 and December 28, 2019, the Company had outstanding forward currency exchange contracts to purchase
−Removed: primarily U.S.
+Added: At January 1, 2022 and January 2, 2021, the Company had outstanding forward currency exchange contracts to purchase primarily U.S.
dollars in the amounts of $296.7 million and $250.7 million, respectively, with maturities ranging up to 538 and 538 days, respectively.
4 unchanged sentences
Accordingly, the Company’s reported results are subject to foreign currency exposure for this stream of revenue and expenses.
−Removed: Any associated foreign currency gains or losses on the settlement of local currency amounts are reflected within the Company's consolidated statement of operations.
+Added: Any associated foreign currency gains or losses on the settlement of local currency amounts are reflected within the Company's consolidated statement of operations and comprehensive income.
Assets and liabilities outside the U.S.
2 unchanged sentences
dollar are generally considered long-term.
+Added: At January 1, 2022, a stronger U.S.
+Added: dollar compared to certain foreign currencies decreased the value of these investments in net assets by $20.0 million from their value at January 2, 2021.
At January 2, 2021, a weaker U.S.
−Removed: dollar compared to certain foreign currencies, increased the value of these investments in net assets by $10.8 million from their value at December 28, 2019.
−Removed: At December 28, 2019, a weaker U.S.
dollar compared to foreign currencies increased the value of these investments in net assets by $10.8 million from their value at December 28, 2019.
−Removed: The Company has a cross currency swap, which has been designated as a hedge of a net investment in a foreign operation.
−Removed: The hedge had a notional amount of $79.8 million as of January 2, 2021 and will mature on September 1, 2021.
Interest Rate Risk
−Removed: The Company is exposed to interest rate changes primarily as a result of interest expense on the Incremental Term Loan borrowings and any borrowings under the Revolving Credit Facility.
−Removed: The Company’s total variable-rate debt was $180.0 million at January 2, 2021.
+Added: The Company is exposed to interest rate changes primarily as a result of interest expense on the Incremental Term Loan borrowings and any borrowings under the Revolving Facility.
+Added: The Company’s total variable-rate debt was $425.0 million at January 1, 2022 and the Company held a forward-dated interest rate swap agreement, denominated in U.S.
+Added: dollars that will effectively convert $311.3 million of this amount to fixed-rate debt.
+Added: The interest rate swap derivative instrument is held and used by the Company as a tool for managing interest rate risk.
+Added: The counterparty to the swap instrument is a large financial institution that the Company believes is of high-quality creditworthiness.
+Added: While the Company may be exposed to potential losses due to the credit risk of non-performance by this counterparty, such losses are not anticipated.
+Added: The fair value of the interest rate swap was determined to be a net liability of $0.1 million as of January 1, 2022.
+Added: As of January 1, 2022, the weighted-average interest rate on the Company’s variable-rate debt, net of the impact of the interest rate swap, was 1.35%.
Based on the level of variable-rate debt outstanding as of that date, a 100 basis point increase in the weighted-average interest rate would have increased the Company’s annual pre-tax interest expense by approximately $4.7 million.
−Removed: The Company had an interest rate swap arrangement to mitigate interest volatility with regard to variable rate borrowings under the senior credit facility which was terminated during 2020.
−Removed: Refer to Note 11 for additional information on the termination.
The Company does not enter into contracts for speculative or trading purposes, nor is it a party to any leveraged derivative instruments.
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.