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We have not used any derivative financial instruments during the years ended December 31, 2023 and 2022, including trading or speculating on changes in interest rates or commodity prices of materials used in our business.
−Removed: As noted previously, the Federal Reserve Board has been increasing interest rates, and it is anticipated that rate increases will continue throughout 2023.
−Removed: 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 and, as a result of the actions referenced above, such rates have increased throughout 2022.
−Removed: For further information on our outstanding debt and borrowing rates, refer to Note 9 - Debt of the notes to consolidated financial statements included in Item 8.
+Added: Throughout 2022 and much of 2023, the Federal Reserve Board increased the federal funds rate.
+Added: We are exposed to market risk for changes in interest rates for borrowings under our revolving credit facility.
+Added: Borrowings under such facility bear interest at variable rates and, as a result of the actions referenced above, such rates have increased throughout 2022 and 2023.
+Added: For further information regarding our credit facility and associated borrowing rates, refer to Note 9 - Debt of the notes to consolidated financial statements included in Item 8.
Financial Statements and Supplementary Data.
−Removed: As of December 31, 2022, there were no direct borrowings outstanding under the 2020 Revolving Credit Facility;
−Removed: however, the balance of the 2020 Term Loan was $242.8 million.
−Removed: Based on the $242.8 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 $3.6 million in the next twelve months.
−Removed: Conversely, if overall interest rates were to decrease by 200 basis points, interest expense, net of income taxes, would decrease by approximately $3.6 million in the next twelve months.
−Removed: The 2020 Credit Agreement expires on March 2, 2025.
−Removed: At the end of 2021, one-week and two-month LIBOR were discontinued.
−Removed: It is expected that the remaining maturities of LIBOR will continue to be published through June 2023.
−Removed: We believe our exposure to market risk associated with the discontinuation of LIBOR is limited as:
−Removed: (a) our 2020 Credit Agreement contains provisions which allow for the use of alternate benchmark rates, (b) we have not historically utilized the maturities that were discontinued in 2021 for any transaction, including borrowings under our 2020 Credit Agreement, and (c) we are not exposed to any other material contracts that reference LIBOR.
We are exposed to construction market risk and its potential related impact on accounts receivable or contract assets on uncompleted contracts.
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Therefore, we believe we take appropriate action to manage market and other risks, but there is no assurance that we will be able to reasonably identify all risks with respect to the collectability of these assets.
−Removed: See also the previous discussion of Accounts Receivable and Allowance for Credit Losses under the heading “Critical Accounting Policies and Estimates” in Item 7.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations.
+Added: For further discussion regarding the collectability of our outstanding accounts receivable, refer to Note 2 - Summary of Significant Accounting Policies of the notes to consolidated financial statements included in Item 8.
+Added: Financial Statements and Supplementary Data.
Amounts invested in our foreign operations are translated into U.S.
−Removed: dollars at the exchange rates in effect at year end.
+Added: dollars at the exchange rates in effect at the end of the period.
The resulting translation adjustments are recorded as accumulated other comprehensive (loss) income, a component of equity, in the Consolidated Balance Sheets.
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Refer to Item 7.
−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 year ended December 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.
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.