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 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.
−Removed: The Company designated the
−Removed: 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 were included in interest expense.
+Added: The Company previously maintained a $50 million floating-for-fixed interest rate swap which converted a portion of the Term Loan to a 4.21% fixed rate, that matured during the quarter ended June 30, 2024.
+Added: Any gain or loss associated with this hedging arrangement was included in interest expense.
+Added: There are no outstanding derivative interest rate contracts at September 29, 2024.
Volatility of Energy Prices.
1 unchanged sentence
The prices for and availability of electricity, natural gas, oil and other energy resources are subject to volatile market conditions.
−Removed: These market conditions often are affected by political and economic factors beyond our control.
+Added: These market conditions often are affected by political and economic factors beyond our
Increases in energy costs, or changes in costs relative to energy costs paid by competitors, have and may continue to adversely affect our profitability.
5 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 June 30, 2024, the outstanding financial derivatives used to hedge our exposure to energy cost volatility included natural gas hedges.
−Removed: Approximately 65% of our forecasted domestic requirements for natural gas for the remainder of 2024 and approximately 35% for 2025.
−Removed: 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.
−Removed: For the quarter ended June 30, 2024, natural gas hedging activity increased cost of sales by $2.3 million.
+Added: At September 29, 2024, the outstanding financial derivatives used to hedge our exposure to energy cost volatility consisted of natural gas hedges.
+Added: Approximately 85% of our forecasted domestic requirements for natural gas for the remainder of 2024, approximately 55% for 2025, and approximately 10% for 2026.
+Added: At September 29, 2024, the net mark-to-market valuation of these outstanding natural gas hedges was an unrealized pre-tax loss of $2.8 million, comprised of $0.1 million in prepaid expenses and other current assets, $0.1 million in other long-term assets, $2.7 million in other current liabilities and $0.3 million in other long-term liabilities on the balance sheet.
+Added: For the quarter ended September 29, 2024, natural gas hedging activity increased cost of sales by $1.8 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 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: However, as of September 29, 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.
The aggregate notional amount hedged is approximately 6% of a single year’s estimated nickel raw material purchase requirements.
1 unchanged sentence
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 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.
+Added: At September 29, 2024, the net mark-to-market valuation of our outstanding raw material hedges was an unrealized pre-tax loss of $2.2 million, comprised of $0.6 million in prepaid expenses and other current assets, $0.2 million in other long-term assets, and $3.0 million in other current liabilities on the balance sheet.
Foreign Currency Risk.
Foreign currency exchange contracts are used, from time-to-time, to limit transactional exposure to changes in currency exchange rates.
−Removed: We sometimes purchase foreign currency forward contracts that permit us to sell specified amounts of foreign currencies expected to be received from our export sales for pre-established U.S.
+Added: We sometimes purchase foreign currency forward contracts that permit us to sell specified amounts of foreign currencies we expect to receive from our export sales for pre-established U.S.
dollar amounts at specified dates.
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 June 30, 2024, we had no material outstanding foreign currency forward contracts.
+Added: At September 29, 2024, we had no material outstanding foreign currency forward contracts.
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.
−Removed: 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.
−Removed: We have no significant outstanding hedges that are not designated as of June 30, 2024.
+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 $1.0 million and $0.5 million of income, net, for settled foreign currency forward contracts that were not designated as hedges during the third quarter and year-to-date period ended September 29, 2024, respectively, which offset foreign currency gains/losses in the relevant currency.
+Added: We have no significant outstanding hedges that are not designated as of September 29, 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.