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 and natural gas 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 and natural gas 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 and natural gas swap contracts that are sensitive to changes in commodity prices as of September 30, 2023.
−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) $ 204 $ 204
−Removed: Natural gas swap contracts (1)
−Removed: Contract volumes (1,000 MMBTU) 10
−Removed: Weighted average price (per MMBTU) 4.74
−Removed: Contract amount (in thousands) $ (20) $ (20)
−Removed: (1) See also Note 20 - Fair Value Measurements and Note 21 - Investments in Derivative Instruments to the consolidated financial statements included in this report.
Interest Rate Risk
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 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.
−Removed: From time to time, we use derivative instruments as hedges against the impact
−Removed: of interest rate changes on future earnings and cash flows.
+Added: We have SOFR-based floating rate borrowings under the Credit Agreements, which expose us to variability in interest payments due to changes in the reference interest rates.
+Added: From time to time, we use derivative instruments as hedges against the impact of interest rate changes on future earnings and cash flows.
We do not enter into such derivative instruments for speculative or trading purposes.
7 unchanged sentences
Debt obligations
−Removed: Term loan $ 15,000 $ 18,750 $ 22,500 $ 227,500 $ — $ 283,750 $ 283,750
+Added: Term Loan A $ 26,563 $ 31,875 $ 333,750 $ — $ 392,188 $ 392,188
Revolving Credit Facility — — 122,850 — 122,850 122,850
3 unchanged sentences
See also Note 20 - Fair Value Measurements and Note 21 - Investments in Derivative Instruments to the consolidated financial statements included in this report.
−Removed: Inflation Risk
−Removed: 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: In recent years, inflation, supply chain and upward wage pressures have had a significant impact on the global economy, including the construction industry in the United States.
−Removed: While it is impossible to fully eliminate the impact of these factors, we seek to recover increasing costs by obtaining higher prices for our products or by including the anticipated price increases in our bids.
−Removed: Due to the relatively short-term duration of our construction contracts, we are generally able to reduce our exposure to price increases on new contracts, but we are limited in our ability to pass through increased costs for projects already in our backlog.
−Removed: Going forward, continued cost inflation in these areas may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.
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.