2 unchanged sentences
Interest Rate Risk
+Added: We are charged variable rates of interest on our indebtedness outstanding under the Amended Credit Agreement, which exposes us to fluctuations in interest rates.
In the first quarter of fiscal 2019, we entered into a four year interest rate collar contract with a notional value of $150.0 million to partially mitigate our exposure to interest rate fluctuations on our variable rate term loan debt.
−Removed: The collar establishes a range where we will pay the counterparty if the three month LIBOR rate falls below the established floor rate of 1.5%, and the counterparty will pay us if the three month LIBOR rate exceeds the ceiling rate of 3.3%.
−Removed: The collar settles quarterly through the termination date of September 30, 2022.
−Removed: No payments or receipts are exchanged on the interest rate collar contract unless interest rates rise above or fall below the contracted ceiling or floor rates.
−Removed: Throughout fiscal 2021, the three month LIBOR rate fell below the established floor, which required us to make $2.0 million in total cash payments to the counterparty.
+Added: The collar established a range where we paid the counterparty if the three month LIBOR rate fell below the established floor rate of 1.5%, and the counterparty paid us if the three month LIBOR rate exceeded the ceiling rate of 3.3%.
+Added: The collar settled quarterly through the termination date of September 30, 2022.
+Added: No payments or receipts were exchanged on the interest rate collar contract unless interest rates rose above or fell below the contracted ceiling or floor rates.
+Added: Throughout much of fiscal 2022, the three month LIBOR rate fell below the established floor, which required us to make $1.2 million in total cash payments to the counterparty.
+Added: We monitor and manage interest rate exposure as part of our overall risk management program, which recognizes the unpredictability of interest rates and seeks to reduce potentially adverse effects on our business.
+Added: However, changes in interest rates cannot always be predicted, hedged, or offset with price increases to eliminate earnings volatility.
Commodity Risk
1 unchanged sentence
We often bid on contracts weeks or months before school buses are delivered and enter into school bus sales contracts with fixed prices per bus.
−Removed: The sales contracts generally do not have an indexed price escalation formula to account for economic fluctuations between the contract date and the delivery date.
−Removed: As a result, we are typically unable to pass along increased economic fluctuation costs to our customers.
−Removed: We generally purchase steel one quarter in advance, but because we generally do not otherwise hedge steel or the other primary commodities we purchase (rubber, aluminum and copper), changes in prices of raw materials can significantly impact future operating margins.
+Added: The sales bids historically have not included price escalation provisions to account for economic fluctuations between the bid date and the contract date.
+Added: As a result, we have historically been unable to pass along increased costs due to economic fluctuations to our customers, which is not expected to continue as the Company now includes price escalation provisions when bidding on contracts.
+Added: However, once a sales contract containing a fixed bus price is executed with a customer, we are generally unable to pass along increased costs resulting from economic fluctuations between the contract date and delivery date.
+Added: We generally purchase steel one quarter in advance at fixed prices, but because we generally do not otherwise hedge steel or the other primary commodities we purchase (rubber, aluminum and copper), changes in prices of raw materials can significantly impact future operating margins.
Currency Risk
4 unchanged sentences
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.