2 unchanged sentences
The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments.
−Removed: As of September 30, 2023, the Company had approximately 112 million tons of U.S.
+Added: As of March 31, 2024, the Company had approximately 100 million tons of U.S.
thermal coal priced and committed for 2024.
6 unchanged sentences
The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts.
−Removed: As of September 30, 2023, the Company had no coal derivative contracts related to its forecasted sales.
−Removed: Historically, such financial contracts have included futures, forwards and options.
−Removed: The Company classifies certain physical forward sales contracts as derivatives for which the normal purchase, normal sales exception does not apply.
+Added: As of March 31, 2024, the Company had no coal derivative contracts related to its forecasted sales.
+Added: Historically, such financial contracts have included futures and forwards.
Foreign Currency Risk
−Removed: The Company has historically utilized currency forwards and options to hedge currency risk associated with anticipated Australian dollar operating expenditures.
+Added: The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures.
The accounting for these derivatives is discussed in Note 6.
“Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements.
−Removed: As of September 30, 2023, the Company held average rate options with an aggregate notional amount of $615.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending June 30, 2024.
−Removed: As of September 30, 2023, the Company also held purchased collars with an aggregate notional amount of $339.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the six-month period ending March 31, 2024.
+Added: As of March 31, 2024, the Company held average rate options with an aggregate notional amount of $516.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending December 31, 2024.
+Added: As of March 31, 2024, the Company also held purchased collars with an aggregate notional amount of $431.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending December 31, 2024.
Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S.
−Removed: dollar exchange rate is approximately $206 million for the next twelve months.
+Added: dollar exchange rate is approximately $190 to $200 million for the next twelve months.
Based upon the Australian dollar/U.S.
−Removed: dollar exchange rate at September 30, 2023, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $175 million with respect to a $0.10 increase in the exchange rate and approximately $180 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
+Added: dollar exchange rate at March 31, 2024, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $146 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $167 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
+Added: Although Peabody believes its Australian dollar monetary asset position acts as a hedge to lessen the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures.
Diesel Fuel Price Risk
1 unchanged sentence
A $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $22 million based on its expected usage.
−Removed: As of September 30, 2023, the Company did not have any diesel fuel derivative instruments in place.
+Added: As of March 31, 2024, the Company did not have any diesel fuel derivative instruments in place.
The Company partially manages the price risk of diesel fuel through the use of cost pass-through contacts with certain customers.
+Added: Interest Rate Risk
+Added: Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs.
+Added: Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances and its long-term debt.
+Added: Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less.
+Added: Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall.
+Added: Based upon its interest-earning cash and restricted cash balances at March 31, 2024, a one percentage point decrease in interest rates would result in a decrease of approximately $15 million to interest income.
+Added: As of March 31, 2024, Peabody had approximately $320 million of fixed-rate borrowings, no variable-rate borrowings outstanding and no interest rate swaps in place.
+Added: A one percentage point increase in interest rates would result in a decrease of approximately $62 million in the estimated fair value of these borrowings.
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.