10 unchanged sentences
As of December 31, 2022, we have no remaining fuel hedge contracts in our consolidated balance sheet. We do not engage in speculative transactions, nor do we hold or issue financial instruments for trading purposes.
−Removed: A one dollar increase in the price of diesel per gallon would decrease our net income by $2.1 million.
−Removed: This sensitivity analysis considers that we expect to purchase approximately 38.9 million gallons of diesel annually, with an assumed fuel surcharge recovery rate of 92.7% of the cost (which was our fuel surcharge recovery rate during the year ended December 31, 2021).
+Added: A one dollar increase in the price of diesel per gallon would increase our net income by $0.3 million.
+Added: This sensitivity analysis considers that we expect to purchase approximately 17.8 million gallons of diesel annually, with an assumed fuel surcharge recovery rate of 102.4% of the cost (which was our fuel surcharge recovery rate during the year ended December 31, 2022).
INTEREST RATE RISK
1 unchanged sentence
The terms of the swap agreement effectively convert the variable rate interest payments on this note to a fixed rate of 4.2% through maturity on August 1, 2035.
−Removed: In 2016, we also entered into several interest rate swaps, which were designated to hedge against the variability in future interest rate payments due on rent associated with the purchase of certain trailers.
+Added: In 2016, we also entered into several interest rate swaps all of which fully matured during 2022, which were designated to hedge against the variability in future interest rate payments due on rent associated with the purchase of certain trailers.
Because the critical terms of the swap and hedged item coincide, in accordance with the requirements of ASC 815, the change in the fair value of the derivative is expected to exactly offset changes in the expected cash flows due to fluctuations in the LIBOR rate over the term of the debt instrument, and therefore no ongoing assessment of effectiveness is required.
−Removed: For the years ended December 31, 2021 and 2020, the fair value of the swap agreements, amounts reclassified from accumulated other comprehensive loss into our results of operations, and amounts expected to be reclassified from accumulated other comprehensive loss into our results of operations during the next twelve months due to interest rate changes, are immaterial.
+Added: For the years ended December 31, 2022 and 2021, the fair value of the swap agreements, amounts reclassified from accumulated other comprehensive loss into our results of operations, and amounts expected to be reclassified from accumulated other comprehensive income into our results of operations during the next twelve months due to interest rate changes, are approximately $0.3 million.
The amounts actually realized will depend on the fair values as of the date of settlement.
3 unchanged sentences
Variable-rate obligations expose us to the risk that interest rates might rise.
−Removed: Of our total $74.3 million of debt including operating and finance leases, we had $26.1 million of variable rate debt outstanding at December 31, 2021, including our Credit Facility, a real-estate note and certain equipment notes, of which the real-estate note of $21.5 million was hedged with the interest rate swap agreement noted above at 4.2% and certain of our equipment notes totaling $4.5 million were hedged at a weighted average interest rate of 2.9%.
−Removed: Our earnings would be affected by changes in these short-term interest rates.
+Added: Of our total $179.6 million of debt including operating and finance leases, we had $20.3 million of variable rate debt outstanding at December 31, 2022, which consisted of a real-estate note which is hedged with the interest rate swap agreement noted above at 4.2%. Our earnings would be affected by changes in these short-term interest rates, if we were to borrow under our Credit Facility or otherwise incur variable-rate obligations.
Risk can be quantified by measuring the financial impact of a near-term adverse increase in short-term interest rates.
−Removed: At our December 31, 2021 level of borrowing on our non-hedged variable rate debt, a 1% increase in our applicable rate would reduce annual net income by less than $0.1 million.
−Removed: Our remaining debt is fixed rate debt, and therefore changes in market interest rates do not directly impact our interest expense.
+Added: At our December 31, 2022 level of borrowing on our non-hedged variable rate debt, a 1% increase in our applicable rate would have an immaterial impact to our consolidated results of operations. Our remaining debt is fixed rate debt, and therefore changes in market interest rates do not directly impact our interest expense.
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.