9 unchanged sentences
The Company designated the interest rate swap as a cash flow hedge of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings.
−Removed: The ineffectiveness at hedge inception, determined from the fair value of the swap immediately prior to its July 2019 amendment, was amortized to interest expense over the initial Term Loan swap maturity date of January 12, 2021.
Any gain or loss associated with this hedging arrangement is included in interest expense.
−Removed: At September 30, 2023, the net mark-to-market valuation of the outstanding interest rate swap was an unrealized pre-tax gain of $1.2 million, all of which is in prepaid expenses and other current assets on the balance sheet.
+Added: At March 31, 2024, the net mark-to-market valuation of the outstanding interest rate swap was an unrealized pre-tax gain of $0.4 million, all of which is in prepaid expenses and other current assets on the balance sheet.
Volatility of Energy Prices.
Energy resource markets are subject to conditions that create uncertainty in the prices and availability of energy resources.
−Removed: The prices for and availability of electricity, natural gas, oil and other energy resources are subject to volatile market conditions.
+Added: The prices for and availability of electricity, natural gas, oil and other energy resources are
+Added: subject to volatile market conditions.
These market conditions often are affected by political and economic factors beyond our control.
6 unchanged sentences
These approaches include incorporating an energy surcharge on many of our products and using financial derivatives to reduce exposure to energy price volatility.
−Removed: At September 30, 2023, the outstanding financial derivatives used to hedge our exposure to energy cost volatility included natural gas hedges.
−Removed: Approximately 80% of our forecasted domestic requirements for natural gas for the remainder of 2023, approximately 55% for 2024 and 15% for 2025 are hedged.
−Removed: At September 30, 2023, the net mark-to-market valuation of these outstanding natural gas hedges was an unrealized pre-tax loss of $3.5 million, comprised of $0.1 million in prepaid expenses and other current assets, $0.2 million in other long-term assets, $3.3 million in other current liabilities and $0.5 million in other
−Removed: long-term liabilities on the balance sheet.
−Removed: For the three months ended September 30, 2023, natural gas hedging activity increased cost of sales by $1.8 million.
+Added: At March 31, 2024, the outstanding financial derivatives used to hedge our exposure to energy cost volatility included natural gas hedges.
+Added: Approximately 70% of our forecasted domestic requirements for natural gas for the remainder of 2024 and approximately 35% for 2025.
+Added: At March 31, 2024, the net mark-to-market valuation of these outstanding natural gas hedges was an unrealized pre-tax loss of $6.2 million, comprised of $5.4 million in other current liabilities and $0.8 million in other long-term liabilities on the balance sheet.
+Added: For the three months ended March 31, 2024, natural gas hedging activity increased cost of sales by $2.4 million.
Volatility of Raw Material Prices.
6 unchanged sentences
The majority of our products are sold utilizing raw material surcharges and index mechanisms.
−Removed: However, as of September 30, 2023, we had entered into financial hedging arrangements, primarily at the request of our customers related to firm orders, for an aggregate notional amount of approximately 6 million pounds of nickel with hedge dates through 2024.
−Removed: The aggregate notional amount hedged is approximately 9% of a single year’s estimated nickel raw material purchase requirements.
+Added: However, as of March 31, 2024, we had entered into financial hedging arrangements, primarily at the request of our customers related to firm orders, for an aggregate notional amount of approximately 2 million pounds of nickel with hedge dates through 2024.
+Added: The aggregate notional amount hedged is less than 5% of a single year’s estimated nickel raw material purchase requirements.
These derivative instruments are used to hedge the variability of a selling price that is based on the London Metal Exchange (LME) index for nickel, as well as to hedge the variability of the purchase cost of nickel based on this LME index.
Any gain or loss associated with these hedging arrangements is included in sales or cost of sales, depending on whether the underlying risk being hedged was the variable selling price or the variable raw material cost, respectively.
−Removed: At September 30, 2023, the net mark-to-market valuation of our outstanding raw material hedges was an unrealized pre-tax loss of $3.0 million, comprised of $2.5 million in prepaid expense and other current assets, $5.0 million in other current liabilities and $0.5 million in other long-term liabilities on the balance sheet.
+Added: At March 31, 2024, the net mark-to-market valuation of our outstanding raw material hedges was an unrealized pre-tax loss of $4.5 million, all of which is in other current liabilities on the balance sheet.
Foreign Currency Risk.
2 unchanged sentences
dollar amounts at specified dates.
−Removed: The forward contracts are denominated in the same foreign currencies in which export sales are denominated.
−Removed: These contracts are designated as hedges of the variability in cash flows of a portion of the forecasted future export sales transactions which otherwise would expose the Company to foreign currency risk, primarily the euro.
In addition, we may also hedge forecasted capital expenditures and designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions.
−Removed: At September 30, 2023, we had no significant outstanding foreign currency forward contracts.
+Added: At March 31, 2024, we had no material outstanding foreign currency forward contracts.
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.