QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
−Removed: We have not used any derivative financial instruments during the three months ended March 31, 2022, including trading or speculating on changes in interest rates or commodity prices of materials used in our business.
+Added: We have not used any derivative financial instruments during the six months ended June 30, 2022, including trading or speculating on changes in interest rates or commodity prices of materials used in our business.
+Added: In an effort to mitigate inflation, the Federal Reserve has increased interest rates throughout the first six months of 2022, and it is anticipated that interest rates will continue to rise in the near term.
We are exposed to market risk for changes in interest rates for borrowings under the 2020 Credit Agreement, which provides for a revolving credit facility and a term loan.
−Removed: Borrowings under the 2020 Credit Agreement bear interest at variable rates.
+Added: Borrowings under the 2020 Credit Agreement bear interest at variable rates and, as a result of the actions referenced above, such rates have increased throughout 2022.
For further information on our outstanding debt and borrowing rates, refer to Note 7 - Debt of the notes to consolidated financial statements.
−Removed: As of March 31, 2022, there were no direct borrowings outstanding under the 2020 Revolving Credit Facility;
+Added: As of June 30, 2022, there were no direct borrowings outstanding under the 2020 Revolving Credit Facility;
however, the balance of the 2020 Term Loan was $256.7 million.
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In addition, we are exposed to market risk of fluctuations in certain commodity prices of materials, such as copper and steel, which are used as components of supplies or materials utilized in our construction, building services, and industrial services operations.
−Removed: We are also exposed to increases in energy prices, particularly as they relate to gasoline prices for our fleet of over 12,000 vehicles.
+Added: We are also exposed to increases in energy prices, particularly as they relate to gasoline prices for our fleet of approximately 12,500 vehicles.
While we believe we can increase our contract prices to adjust for some price increases in commodities, there can be no assurance that such price increases, if they were to occur, would be recoverable.
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Refer to Item 2.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion regarding the impact of fluctuations in commodity and material prices on our results of operations for the three months ended March 31, 2022.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion regarding the impact of fluctuations in commodity and material prices on our results of operations for the six months ended June 30, 2022.
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.