6 unchanged sentences
We may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt.
−Removed: The Company has a $50 million floating-for-fixed interest rate swap which converts a portion of the Term Loan to a 4.21% fixed rate.
−Removed: The swap matures in June 2024.
−Removed: 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: Any gain or loss associated with this hedging arrangement is included in interest expense.
−Removed: 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.
+Added: The Company had a $50 million floating-for-fixed interest rate swap which converted a portion of the Term Loan to a 4.21% fixed rate, which matured during the quarter ended June 30, 2024.
+Added: The Company designated the
+Added: 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.
+Added: Any gain or loss associated with this hedging arrangement were included in interest expense.
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
−Removed: subject to volatile market conditions.
+Added: The prices for and availability of electricity, natural gas, oil and other energy resources are 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 March 31, 2024, the outstanding financial derivatives used to hedge our exposure to energy cost volatility included natural gas hedges.
+Added: At June 30, 2024, the outstanding financial derivatives used to hedge our exposure to energy cost volatility included natural gas hedges.
Approximately 65% of our forecasted domestic requirements for natural gas for the remainder of 2024 and approximately 35% for 2025.
−Removed: 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.
−Removed: For the three months ended March 31, 2024, natural gas hedging activity increased cost of sales by $2.4 million.
+Added: At June 30, 2024, the net mark-to-market valuation of these outstanding natural gas hedges was an unrealized pre-tax loss of $3.3 million, comprised of $3.0 million in other current liabilities and $0.3 million in other long-term liabilities on the balance sheet.
+Added: For the quarter ended June 30, 2024, natural gas hedging activity increased cost of sales by $2.3 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 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.
−Removed: The aggregate notional amount hedged is less than 5% of a single year’s estimated nickel raw material purchase requirements.
+Added: However, as of June 30, 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 4 million pounds of nickel with hedge dates through 2025.
+Added: The aggregate notional amount hedged is approximately 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 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.
+Added: At June 30, 2024, the net mark-to-market valuation of our outstanding raw material hedges was an unrealized pre-tax loss of $4.2 million, comprised of $3.7 million in other current liabilities and $0.5 million in other long-term liabilities on the balance sheet.
Foreign Currency Risk.
3 unchanged sentences
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 March 31, 2024, we had no material outstanding foreign currency forward contracts.
+Added: At June 30, 2024, we had no material outstanding foreign currency forward contracts.
+Added: We may also use derivative instruments that are not designated as hedges to protect our results from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.
+Added: Changes in the fair value of these foreign exchange contract derivatives not designated as hedging instruments are recorded in cost of sales or selling, general and administrative expenses on the consolidated statement of operations, and we recognized $0.5 million of expense for settled foreign currency forward contracts that were not designated as hedges during the second quarter and year-to-date period ended June 30, 2024, which offset foreign currency gains in the relevant currency.
+Added: We have no significant outstanding hedges that are not designated as of June 30, 2024.
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.