Quantitative and Qualitative Disclosures About Market Risk.
−Removed: The potential for changes in the market value of our coal and freight-related trading, crude oil, diesel fuel, natural gas and foreign currency contract portfolios, as applicable, is referred to as “market risk.” Market risk related to our coal trading and freight-related contract portfolio, which includes bilaterally-settled and over-the-counter (OTC) exchange-settled trading, in addition to, from time to time, the brokered trading of coal, is evaluated using a value at risk (VaR) analysis.
+Added: The potential for changes in the market value of our coal and freight-related trading, crude oil, diesel fuel and foreign currency contract portfolios, as applicable, is referred to as “market risk.” Market risk related to our coal trading and freight-related contract portfolio, which includes bilaterally-settled and over-the-counter (OTC) exchange-settled trading, in addition to, from time to time, the brokered trading of coal, is evaluated using a value at risk (VaR) analysis.
VaR analysis is not used to evaluate our non-trading diesel fuel or foreign currency hedging portfolios, as applicable, or coal trading activities we employ in support of coal production (as discussed below).
7 unchanged sentences
For example, we have policies in place that limit the amount of market price risk, as measured by VaR, that we may assume at any point in time from our trading and brokerage activities.
−Removed: Peabody Energy Corporation
−Removed: 2019 Form 10-K
We generally account for our coal trading activities using the fair value method, which requires us to reflect contracts with third parties that meet the definition of a derivative at market value in our consolidated financial statements, with the exception of contracts for which we have elected to apply the normal purchases and normal sales exception.
15 unchanged sentences
During the year ended December 31, 2020, the actual low, high and average VaR was $0.3 million, $3.0 million and $1.1 million, respectively.
+Added: Peabody Energy Corporation 2020 Form 10-K
Other Risk Exposures.
15 unchanged sentences
We also continually monitor counterparty and contract nonperformance risk, if present, on a case-by-case basis.
−Removed: Peabody Energy Corporation
−Removed: 2019 Form 10-K
Foreign Currency Risk
6 unchanged sentences
Based upon the Australian dollar/U.S.
−Removed: dollar exchange rate at December 31, 2019 , the currency option contracts outstanding at that date would not materially limit our net exposure to a $0.05 unfavorable change in the exchange rate for the next twelve months.
+Added: dollar exchange rate at December 31, 2020, the currency option contracts outstanding at that date would limit our net exposure to a $0.10 unfavorable change in the exchange rate to approximately $60 million for the next twelve months.
Other Non-Coal Trading Activities — Commodity Price Risk
10 unchanged sentences
Sales commitments in the metallurgical coal market are typically not long-term in nature, and we are therefore subject to fluctuations in market pricing.
+Added: Peabody Energy Corporation 2020 Form 10-K
Diesel Fuel Hedges.
10 unchanged sentences
With respect to our fixed-rate borrowings, a one percentage point increase in interest rates would result in a decrease of approximately $14 million in the estimated fair value of these borrowings.
+Added: Financial Statements and Supplementary Data.
+Added: See Part IV, Item 15.
+Added: “Exhibits and Financial Statement Schedules” of this report for the information required by this Item 8, which information is incorporated by reference herein.
+Added: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
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.