14 unchanged sentences
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 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 SOFR rate over the term of the debt instrument, and therefore no ongoing assessment of effectiveness is required.
6 unchanged sentences
Variable-rate obligations expose us to the risk that interest rates might rise.
−Removed: Of our total $296.9 million of debt including operating and finance leases, we had $17.8 million of variable rate debt outstanding at December 31, 2024, which related to a real-estate note which is hedged with the interest rate swap agreement noted above at 4.2%.
−Removed: 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.
+Added: Of our total $338.7 million of debt including operating and finance leases, we had $46.3 million of variable rate debt outstanding at December 31, 2025, which related to our Credit Facility and a real-estate note which is hedged with the interest rate swap agreement noted above at 4.2%.
+Added: Our earnings would be affected by changes in these short-term interest rates if we were to incur additional 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, 2024 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.
+Added: At our December 31, 2025 level of borrowing on our non-hedged variable rate debt, a 1% increase in our applicable rate would increase our interest expense by approximately $0.5 million.
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.