3 unchanged sentences
However, except for a small number of aircraft that have lease payments that fluctuate based in part on changes in market interest rates, the remainder of the leases are not considered market sensitive financial instruments and, therefore, are not included in the interest rate sensitivity analysis below.
−Removed: The Company also has 47 aircraft under operating and finance lease that have been subleased to another carrier.
+Added: The Company also has 14 aircraft under operating leases that have been subleased to another carrier.
Further information about these leases is disclosed in Note 8 to the Consolidated Financial Statements.
4 unchanged sentences
The Company believes there can be significant risk in not hedging against the possibility of such fuel price increases, especially in energy markets in which prices are high and/or rising.
−Removed: The Company expects to consume approximately 284 million gallons of jet fuel in first quarter 2021.
−Removed: Based on this anticipated usage, a change in jet fuel prices of just one cent per gallon would impact the Company’s Fuel and oil expense by approximately $3 million for the three months ended March 31, 2021, excluding any impact associated with fuel derivative instruments held.
+Added: The Company expects to consume approximately 1.9 billion gallons of jet fuel in 2022.
+Added: Based on this anticipated usage, a change in jet fuel prices of just one cent per gallon would impact the Company’s Fuel and oil expense by approximately $19 million for 2022, excluding any impact associated with fuel derivative instruments held.
As of December 31, 2021, the Company held a net position of fuel derivative instruments that represented a hedge for a portion of its anticipated jet fuel purchases for future periods.
10 unchanged sentences
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 December 31, 2020, the Company had nine counterparties in which the derivatives held were an asset.
+Added: As of December 31, 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.
5 unchanged sentences
The Company is also subject to the risk that the fuel derivatives it uses to hedge against fuel price volatility do not provide adequate protection.
−Removed: The Company has found that financial derivative instruments in commodities, such as West Texas Intermediate crude oil, Brent crude oil, and refined products, such as heating oil and unleaded gasoline, can be useful in decreasing its exposure to jet fuel price volatility.
+Added: The Company has found that financial derivative instruments in commodities, such as WTI crude oil, Brent crude oil, and refined products, such as heating oil and unleaded gasoline, can be useful in decreasing its exposure to jet fuel price volatility.
In addition, to add further protection, the Company may periodically enter into jet fuel derivatives for short-term timeframes.
24 unchanged sentences
2.625% Notes due 2030
−Removed: The $100 million 7.375% senior unsecured notes due 2027 had at one point been converted to a floating rate, but the Company subsequently terminated the fixed-to-floating interest rate swap agreements related to it.
+Added: The $100 million 7.375% debentures due 2027 had at one point been converted to a floating rate, but the Company subsequently terminated the fixed-to-floating interest rate swap agreements related to it.
The effect of this termination was that the interest associated with this debt prospectively reverted back to its original fixed rate.
As a result of the gain realized on this transaction, which is being amortized over the remaining term of the corresponding notes, and based on projected interest rates at the date of termination, the Company does not believe its future interest expense, based on projected future interest rates at the date of termination, associated with these notes will significantly differ from the expense it would have recorded had the notes remained at floating rates.
−Removed: The Company had no secured fixed rate debt as of December 31, 2020.
−Removed: The carrying value of the Company’s floating rate debt totaled $449 million, and this debt had a weighted-average maturity of 3.47 years at floating rates averaging 1.65 percent for the year ended December 31, 2020.
−Removed: The Company's floating rate debt represented 4.3 percent of the Company's total outstanding debt as of December 31, 2020.
−Removed: In addition, the Company's total debt (both floating and fixed rate debt) divided by total assets was 29.9 percent as of December 31, 2020.
+Added: The Company's total debt divided by total assets was 29.5 percent as of December 31, 2021.
The Company also has some risk associated with changing interest rates due to the short-term nature of its invested cash, which totaled $12.5 billion, and short-term investments, which totaled $3.0 billion at December 31, 2021.
4 unchanged sentences
The Company has not undertaken any additional actions to cover interest rate market risk and is not a party to any other material market interest rate risk management activities.
−Removed: A hypothetical 10 percent change in market interest rates as of December 31, 2020, would have resulted in an approximate $59 million change on the fair value of the Company’s fixed-rate debt instruments.
+Added: A hypothetical 10 percent change in market interest rates as of December 31, 2021, would have resulted in an approximate $37 million change in the fair value of the Company’s fixed-rate debt instruments.
See Note 12 to the Consolidated Financial Statements for further information on the fair value of financial instruments.
−Removed: A change in market interest rates could, however, have a corresponding effect on earnings and cash flows associated with the Company’s floating-rate debt, invested cash (excluding cash collateral deposits held, if applicable), floating-rate aircraft leases, and short-term investments because of the floating-rate nature of these items.
+Added: A change in market interest rates could, however, have a corresponding effect on earnings and cash flows associated with the Company’s invested cash (excluding cash collateral deposits held, if applicable) and short-term investments because of the floating-rate nature of these items.
Assuming floating market rates in effect as of December 31, 2021 were held constant throughout a 12-month period, a hypothetical 10 percent change in those rates would have an immaterial impact on the Company’s net earnings and cash flows.
−Removed: Utilizing these assumptions and considering the Company’s cash balance (excluding the impact of cash collateral deposits held from or provided to counterparties, if applicable), short-term investments, and floating-rate debt outstanding at December 31, 2020, an increase in rates would have a net positive effect on the Company’s earnings and cash flows, while a decrease in rates would have a net negative effect on the Company’s earnings and cash flows.
+Added: Utilizing these assumptions and considering the Company’s cash balance (excluding the impact of cash collateral deposits held from or provided to counterparties, if applicable) and short-term investments outstanding at December 31, 2021, an increase in rates would have a net positive effect on the Company’s earnings and cash flows, while a decrease in rates would have a net negative effect on the Company’s earnings and cash flows.
However, a 10 percent change in market rates would not impact the Company’s earnings or cash flow associated with the Company’s publicly traded fixed-rate debt.
1 unchanged sentence
Certain covenants include the maintenance of minimum credit ratings and/or triggers that are based on changes in these ratings.
−Removed: The Company’s Amended A&R Credit Agreement contains a financial covenant to maintain total liquidity, as defined therein, of $1.5 billion at all times.
+Added: The Company’s Amended A&R Credit Agreement contains a financial covenant to maintain total liquidity,
+Added: as defined therein, of $1.5 billion at all times.
As of December 31, 2021, the Company was in compliance with this covenant and there were no amounts outstanding under the Amended A&R Credit Agreement.
16 unchanged sentences
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.