3 unchanged sentences
Floating rate debt, where the interest rate fluctuates periodically, exposes us to short-term changes in market interest rates.
−Removed: Fixed rate debt, where the interest rate is fixed over the life of the
−Removed: Table of Conte n t s
−Removed: instrument, exposes us to changes in market interest rates reflected in the fair value of the debt and to the risk that we may need to refinance maturing debt with new debt at higher rates.
+Added: Fixed rate debt, where the interest rate is fixed over the life of the instrument, exposes us to changes in market interest rates reflected in the fair value of the debt and to the risk that we may need to refinance maturing debt with new debt at higher rates.
We manage our debt portfolio to achieve an overall desired proportion of fixed and floating rate debts and may employ interest rate swaps as a tool from time to time to achieve that position.
−Removed: As of September 30, 2020, our aggregate floating rate debt’s outstanding principal balance was $100.8 million, consisting of long-term debt and revolving lines of credit (See Notes 11 and 12).
−Removed: Given the historically low interest rate environment triggered by the COVID-19 pandemic, the Company adopted a more active cash flow hedge strategy to capitalize on the multi-year low interest rate and to mitigate potential rate increases through an interest rate swap contract executed with JP Morgan Chase Bank on June 24, 2020 (the "JPM IRS").
−Removed: The JPM IRS contract effectively locked in the Company's future interest rate expense at aggregate rate of 2.288% per annum on the prevailing balance of the above-mentioned term loan and 1.788% per annum for a portion of the revolving line of credit up to an aggregate amount of $80 million during the contract period (see Note 11 and 12).
−Removed: As of December 31, 2020, 100% of our floating rate debts have been effectively hedged for the period from June 30, 2021 to June 30, 2025, inclusive (See Note 10).
+Added: To manage our interest rate risk exposure, we entered into three interest rate swap contracts to hedge the floating rate term loans.
+Added: See Note 9 - Derivative Financial Instruments to the consolidated financial statements in this Annual Report on Form 10-K for additional information.
+Added: As of December 31, 2021, our aggregate floating rate debt’s outstanding principal balance without hedging was $126.1 million, or 88.4% of total debt, consisting of long-term debt and revolving line of credit (see Note 10 - Line of Credit and Note 11 - Long-Term Debt to the consolidated financial statements in this Annual Report on Form 10-K).
+Added: Our floating rate debt interest is based on the floating 1-month SOFR plus a predetermined credit adjustment rate plus the bank spread.
+Added: The remaining 11.6% of our debt are on a fixed rate or a floating rate with hedging.
+Added: In a hypothetical scenario, a 1% change in the applicable rate would cause the interest expense on our floating rate debt to change by approximately $1.3 million per year.
Fuel Price Risk
1 unchanged sentence
We require significant quantities of diesel fuel for our vehicle fleet, and the inbound delivery of the products we sell is also dependent upon shipment by diesel-fueled vehicles.
−Removed: We currently are able to obtain adequate supplies of diesel fuel, and prices in the current quarter are lower than in the comparable period of 2019.
+Added: We currently are able to obtain adequate supplies of diesel fuel, and average prices in 2021 increased 29.5%, compared to average prices in 2020.
However, it is impossible to predict the future availability or price of diesel fuel.
1 unchanged sentence
Increases in the cost of diesel fuel could increase our cost of goods sold and operating costs to deliver products to our customers.
−Removed: The Company does not actively hedge the price fluctuation of diesel fuel in general.
−Removed: Instead, we seek to minimize fuel cost risk through delivery route optimization and improving fleet utilization.
+Added: We do not actively hedge the price fluctuation of diesel fuel in general.
+Added: Instead, we seek to minimize fuel cost risk through delivery route optimization and fleet utilization improvement.
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.