1 unchanged sentence
As discussed in Note 4 to the unaudited Condensed Consolidated Financial Statements, the Company endeavors to acquire jet fuel at the lowest possible price and to reduce volatility in operating expenses through its fuel hedging program with the use of financial derivative instruments.
−Removed: At March 31, 2021, the estimated fair value of outstanding contracts was an asset of $249 million.
+Added: At June 30, 2021, the estimated fair value of outstanding contracts was an asset of $502 million.
The Company's credit exposure related to fuel derivative instruments is represented by the fair value of contracts that are in an asset position to the Company.
At such times, these outstanding instruments expose the Company to credit loss in the event of nonperformance by the counterparties to the agreements.
−Removed: As of March 31, 2021, the Company had nine counterparties for which the derivatives held were an asset.
+Added: As of June 30, 2021, the Company had nine counterparties for which the derivatives held were an asset.
To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings, limits its exposure with respect to each counterparty, and monitors the market position of the fuel hedging program and its relative market position with each counterparty.
However, if one or more of these counterparties were in a liability position to the Company and were unable to meet their obligations, any open derivative contracts with the counterparty could be subject to early termination, which could result in substantial losses for the Company.
−Removed: At March 31, 2021, the Company had agreements with all of its active counterparties containing early termination rights and/or bilateral collateral provisions whereby security is required if market risk exposure exceeds a specified threshold amount based on the counterparty's credit rating.
+Added: At June 30, 2021, the Company had agreements with all of its active counterparties containing early termination rights and/or bilateral collateral provisions whereby security is required if market risk exposure exceeds a specified threshold amount based on the counterparty's credit rating.
The Company also had agreements with counterparties in which cash deposits and/or letters of credit are required to be posted as collateral whenever the net fair value of derivatives associated with those counterparties exceeds specific thresholds.
−Removed: At March 31, 2021, $72 million in cash collateral deposits were held by the Company from counterparties based on the Company's outstanding fuel derivative instrument portfolio.
−Removed: Due to the types of derivatives held as of March 31, 2021, the Company does not have cash collateral exposure.
+Added: At June 30, 2021, $120 million in cash collateral deposits were held by the Company from counterparties based on the Company's outstanding fuel derivative instrument portfolio.
+Added: Due to the types of derivatives held as of June 30, 2021, the Company does not have cash collateral exposure.
See Note 4 to the unaudited Condensed Consolidated Financial Statements.
8 unchanged sentences
Under these processing agreements, and based on specified conditions, increasing amounts of cash reserves could be required to be posted with the counterparty.
−Removed: There was no cash reserved for this purpose as of March 31, 2021.
+Added: There was no cash reserved for this purpose as of June 30, 2021.
A majority of the Company’s sales transactions are processed by Chase Paymentech.
3 unchanged sentences
Cash reserve requirements are based on the Company’s public debt rating and a corresponding percentage of the Company’s Air traffic liability.
−Removed: As of March 31, 2021, no holdbacks were in place.
+Added: As of June 30, 2021, no holdbacks were in place.
See Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, for further information about market risk, and Note 4 to the unaudited Condensed Consolidated Financial Statements in this Form 10-Q for further information about the Company's fuel derivative instruments.
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.