Quantitative and Qualitative Disclosures About Market Risk.
−Removed: Commodity Price Risk
−Removed: We are subject to commodity price risk with respect to price changes in liquid asphalt and energy, including fossil fuels and electricity for aggregates and asphalt paving mix production, natural gas for HMA production and diesel fuel for distribution vehicles and production-related mobile equipment.
−Removed: In order to manage or reduce commodity price risk, we monitor the costs of these commodities at the time of bid and price them into our contracts accordingly.
−Removed: 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 18 months, for certain raw materials.
−Removed: 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 commodity prices.
−Removed: We do not enter into commodity swap contracts for speculative or trading purposes.
−Removed: These fuel swap contracts provide a fixed price for less than 50% of our estimated fuel and natural gas usage for fiscal years 2024 and 2025.
−Removed: The table below provides information about the Company’s fuel swap contracts that are sensitive to changes in commodity prices as of December 31, 2023 (unaudited).
−Removed: Carrying Amount Fair Value
−Removed: Fuel swap contracts (1)
−Removed: Contract volumes (1,000 gallons) 378
−Removed: Weighted average price (per gallon) $ 2.71
−Removed: Contract amount (in thousands) $ (42) $ (42)
−Removed: (1) See also Note 15 - Investment in Derivative Instruments and Note 16 - Fair Value Measurements to the unaudited consolidated financial statements included elsewhere in this report.
Interest Rate Risk
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We do not enter into such derivative instruments for speculative or trading purposes.
−Removed: At December 31, 2023, we had a total of $443.1 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 $4.4 million change in our annual interest expense based on our variable rate debt outstanding at December 31, 2023.
−Removed: 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 December 31, 2023 (unaudited, in thousands).
+Added: At March 31, 2024, we had a total of $439.4 million of variable rate debt outstanding.
+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 $4.4 million change in our annual interest expense based on our variable rate debt outstanding at March 31, 2024.
+Added: 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 March 31, 2024 (unaudited, in thousands):
For the Fiscal Year Ending September 30, Fair
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14,603 28,423 27,015 19,276 —
−Removed: (1) Represents projected interest payments using the Company’s December 2023 SOFR-based floating rate of 6.95% per annum.
−Removed: The notional amount of the Company’s outstanding interest rate swap contract at December 31, 2023 was $300.0 million.
−Removed: The maturity date of this swap is June 30, 2027, and the fair value of the outstanding swap contract was $17.6 million as of December 31, 2023.
+Added: (1) Represents projected interest payments using the Company’s March 2024 SOFR-based floating rate of 6.68% per annum.
+Added: The notional amount of the Company’s outstanding interest rate swap contract at March 31, 2024 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 $21.0 million as of March 31, 2024.
See also Note 15 - Investment in Derivative Instruments and Note 16 - Fair Value Measurements to the unaudited consolidated financial statements included elsewhere in this report.
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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.