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Furthermore, liquid asphalt escalator provisions in most of our public contracts, and in some of our private and commercial contracts, limit our exposure to price fluctuations in this commodity.
−Removed: In addition, we enter into various firm purchase commitments, with terms generally less than one year, for certain raw materials.
+Added: In addition, we enter into various firm purchase commitments, with terms generally less than 18 months, for certain raw materials.
Our risk management activities also include the use of financial derivative instruments.
−Removed: We have entered into fuel swap contracts to mitigate the financial impact of fluctuations in fuel prices.
−Removed: We do not enter into fuel swap contracts for speculative or trading purposes.
−Removed: These fuel swap contracts provide a fixed price for less than 50% of our estimated fuel usage for the remainder of fiscal years 2022 and part of 2023.
−Removed: The table below provides information about the Company’s fuel swap contracts that are sensitive to changes in commodity prices, specifically diesel fuel, as of September 30, 2021.
+Added: We have entered into fuel swap and natural gas swap contracts to mitigate the financial impact of fluctuations in commodity prices.
+Added: We do not enter into commodity swap contracts for speculative or trading purposes.
+Added: These fuel and natural gas swap contracts provide a fixed price for less than 50% of our estimated fuel and natural gas usage for fiscal years 2023 and 2024.
+Added: The table below provides information about the Company’s fuel swap contracts that are sensitive to changes in commodity prices as of September 30, 2022.
Carrying Amount Fair Value
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Contract amount (in thousands) $ 694 $ 694
+Added: Natural gas swap contracts (1)
+Added: Contract volumes (1,000 MMBTU) 610
+Added: Weighted average price (per MMBTU) 5.93
+Added: Contract amount (in thousands) $ (168) $ (168)
(1) See also Note 21 - Fair Value Measurements and Note 22 - Investments in Derivative Instruments to the consolidated financial statements included in this report.
1 unchanged sentence
We are exposed to interest rate risk on certain of our short- and long-term debt obligations used to finance our operations and acquisitions.
−Removed: We have LIBOR-based floating rate borrowings under the Credit Agreement, which expose us to variability in interest payments due to changes in the reference interest rates.
+Added: We have SOFR-based floating rate borrowings under the Credit Agreement, which expose us to variability in interest payments due to changes in the reference interest rates.
From time to time, we use derivative instruments as hedges against the impact of interest rate changes on future earnings and cash flows.
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At September 30, 2022, we had a total of $377.0 million of variable rate borrowings outstanding.
−Removed: Holding other factors constant and absent the interest rate swap agreements described above, a hypothetical 1% change in our borrowing rates would result in a $2.2 million change in our annual interest expense based on our variable rate debt at September 30, 2021.
+Added: Holding other factors constant and absent the interest rate swap agreements described above, a hypothetical 1% change in our borrowing rates would result in a $3.8 million change in our annual interest expense based on our variable rate debt outstanding at September 30, 2022.
The following table presents the future principal payment obligations, interest payments, and fair values associated with the Company’s debt instruments assuming the Company’s actual level of variable rate debt as of September 30, 2022 (in thousands).
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16,046 15,487 14,875 14,042 9,948 —
−Removed: (1) Represents projected interest payments using the Company’s October 2021 LIBOR-based floating rate of 1.58%.
−Removed: The notional amount of the Company’s outstanding interest rate swap contracts at September 30, 2021 was $198.3 million.
−Removed: The maturity dates of outstanding interest rate swap contracts range from June 2022 to June 2026.
−Removed: The fair value of outstanding interest rate swap contracts was ($0.8) million as of September 30, 2021.
+Added: (1) Represents projected interest payments using the Company’s September 2022 SOFR-based floating rate of 4.31%.
+Added: The notional amount of the Company’s outstanding interest rate swap contract at September 30, 2022 was $300.0 million.
+Added: The maturity date of this swap is June 30, 2027, and the fair value of the outstanding swap contract was $24.7 million as of September 30,
See also Note 21 - Fair Value Measurements and Note 22 - Investments in Derivative Instruments to the consolidated financial statements included in this report.
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We are subject to the effects of inflation through wage pressures, increases in the cost of raw materials used to produce HMA, and increases in other items, such as fuel, concrete and steel.
−Removed: During the fiscal year ended September 30, 2021, we began to experience an upward trend in several of these inflation-sensitive items.
+Added: During the fiscal year ended September 30, 2022, we continued to experience increased costs in several of these inflation-sensitive items.
We seek to recover increasing costs by obtaining higher prices for our products or by including the anticipated price increases in our bids.
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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.