QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
−Removed: 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.
−Removed: 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.
+Added: We have not used any derivative financial instruments during the nine months ended September 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 nine 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.
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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 June 30, 2022, there were no direct borrowings outstanding under the 2020 Revolving Credit Facility;
−Removed: however, the balance of the 2020 Term Loan was $256.7 million.
+Added: As of September 30, 2022, there were borrowings of $170.0 million outstanding under the 2020 Revolving Credit Facility and the balance of the 2020 Term Loan was $256.7 million.
Based on the $426.7 million of borrowings outstanding under the 2020 Credit Agreement, if overall interest rates were to increase by 200 basis points, interest expense, net of income taxes, would increase by approximately $6.2 million in the next twelve months.
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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 six months ended June 30, 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 nine months ended September 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.