QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We are exposed to market risk from changes in certain commodity prices, equity prices, and inflation.
+Added: We are exposed to market risk from changes in certain commodity prices, inflation, and interest rates.
All of these market risks arise in the normal course of business, as we do not engage in speculative trading activities.
4 unchanged sentences
Historically, we have been able to recover a majority of fuel price increases from our customers in the form of fuel surcharges.
−Removed: The average diesel price per gallon in the U.S., as reported by the Department of Energy, increased from $3.26 per gallon for fiscal year 2021 to $4.96 per gallon for fiscal year 2022.
+Added: The average diesel price per gallon in the U.S., as reported by the Department of Energy, decreased from $4.96 per gallon for fiscal year 2022 to $4.23 per gallon for fiscal year 2023.
We cannot predict the extent or speed of potential changes in fuel prices in the future, the degree to which the lag effect of our fuel surcharge programs will impact us as a result of the timing and magnitude of such changes, or the extent to which effective fuel surcharges can be maintained and collected to offset future increases.
2 unchanged sentences
Inflation can have an unfavorable impact on our operating costs, and a prolonged period of inflation could cause interest rates, fuel, wages, healthcare and other employee benefits, transportation equipment and related maintenance, insurance premiums, and other costs to increase, which would adversely affect our results of operations unless freight rates correspondingly increase.
−Removed: During 2022, the U.S.
−Removed: experienced rising inflation, with levels reaching a 40-year high, and as a result, we have experienced increases in our fuel, transportation equipment, labor and third-party capacity, tire, and maintenance costs.
−Removed: To date, we have been able to recover the majority of those price increases from our customers;
−Removed: however, we may not be able to continue to recover higher costs if inflationary pressures persist.
−Removed: Our inability or failure to do so could harm our business, financial condition, and results of operations.
+Added: While inflation has stabilized during 2023, the prior two years have seen considerable price inflation where we experienced increases in our fuel, transportation equipment, labor and third-party capacity, tire, and maintenance costs.
+Added: A resumption of an upward inflationary environment could harm our business, financial condition, and results of operations.
+Added: Interest Rate Risk
+Added: We have exposure from variable interest rates primarily related to borrowings under our accounts receivable securitization facility and our revolving credit facility which bear interest based on the one-month Term SOFR.
+Added: See Note 7, Debt and Credit Facilities .
+Added: We manage interest rate exposure through a mix of variable and fixed rate debt and lease financing.
+Added: As of December 31, 2023, our weighted average interest rate for our variable rate debt instruments was 6.36%.
+Added: Based on our level of borrowings as of December 31, 2023, our annual interest expense would increase by $1.1 million assuming a one percentage point increase in interest rates.
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.