6 unchanged sentences
We may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt.
−Removed: ATI has a $50 million floating-for-fixed interest rate swap which converts a portion of the ABL Term Loan to a 4.21% fixed rate.
−Removed: The swap matures in June 2024.
−Removed: We designated the interest rate swap as a cash flow hedge of our exposure to the variability of the payment of interest on a portion of its ABL Term Loan borrowings.
−Removed: The ineffective portion at hedge inception, determined from the fair value of the swap immediately prior to amendment in July 2019, was amortized to interest expense over the initial ABL Term Loan swap maturity date of January 12, 2021.
−Removed: Any gain or loss associated with this hedging arrangement is included in interest expense.
−Removed: At December 31, 2023, the net mark-to-market valuation of the outstanding interest rate swap was an unrealized pre-tax gain of $0.7 million, comprised of $0.7 million in prepaid expenses and other current assets on the balance sheet.
+Added: ATI previously maintained a $50 million floating-for-fixed interest rate swap which converted a portion of the ABL Term Loan to a 4.21% fixed rate that matured during the quarter ended June 30, 2024.
+Added: There are no outstanding derivative interest rate contracts at December 29, 2024.
Volatility of Energy Prices.
7 unchanged sentences
For example, a hypothetical $1.00 per MMBtu increase in the price of natural gas would result in increased annual energy costs of approximately $6 to $8 million.
−Removed: We use several approaches to minimize any material adverse effect on our financial condition or results of operations from volatile energy prices.
+Added: We use several
+Added: approaches to minimize any material adverse effect on our financial condition or results of operations from volatile energy prices.
These approaches include incorporating an energy surcharge on many of our products and using financial derivatives or physical hedges to reduce exposure to energy price volatility.
1 unchanged sentence
At December 29, 2024, we hedged approximately 75% of our annual forecasted domestic requirements for natural gas for fiscal year 2025 and approximately 35% for fiscal year 2026.
−Removed: At December 31, 2023, the net mark-to-market valuation of the outstanding natural gas hedges was an unrealized pre-tax loss of $6.6 million, comprised of $0.1 million in other assets, $5.6 million in other current liabilities and $1.1 million in other long-term liabilities on the balance sheet.
+Added: At December 29, 2024, the net mark-to-market valuation of the outstanding natural gas hedges was an unrealized pre-tax loss of $0.1 million, comprised of $0.8 million in prepaid expenses and other current assets, $0.9 million in other long-term assets, $1.7 million in other current liabilities and $0.1 million in other long-term liabilities on the balance sheet.
For the year ended December 29, 2024, the effects of natural gas hedging activity increased cost of sales by $8.0 million.
8 unchanged sentences
However, as of December 29, 2024, we had entered into financial hedging arrangements, primarily at the request of our customers, related to firm orders, for an aggregate amount of approximately 4 million pounds of nickel with hedge dates through fiscal year 2027.
−Removed: The aggregate
−Removed: notional amount hedged is approximately 6% of a single year’s estimated nickel raw material purchase requirements.
+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 Metals Exchange (LME) index for nickel, as well as to hedge the variability of the purchase cost of nickel based on this LME index.
7 unchanged sentences
At December 29, 2024, we had no significant 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 $2.2 million of expense, net, for settled foreign currency forward contracts that were not designated as hedges during the fiscal year ended December 29, 2024, which offset foreign currency gains/losses in the relevant currency.
+Added: We have no significant outstanding hedges that are not designated as of December 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.