7 unchanged sentences
Fixed rate debt, where the interest rate is fixed over the life of the instrument, exposes us to changes in market interest rates reflected in the fair value of the debt and to the risk that we may need to refinance maturing debt with new debt at higher rates.
−Removed: We manage our debt portfolio to achieve an overall desired position of fixed and floating rates and may employ interest rate swaps as a tool to achieve that position.
−Removed: We have in the past entered into interest rate swap agreements to limit our exposure to variable interest rate terms, the most recent of which expired on July 31, 2021.
−Removed: We may, in the future, again enter into interest rate swaps, the risks of which include changes in the interest rates affecting the fair value of such instruments, potential increases in interest expense due to market increases in floating interest rates and the creditworthiness of the counterparties.
−Removed: Approximately 42% of the principal amount of our debt bore interest at floating rates based on LIBOR, SOFR or an alternative base rate, as defined in our credit agreements, as of December 31, 2022 .
+Added: We manage our debt portfolio to achieve an overall desired position of fixed and floating rates and may employ interest rate hedges as a tool to achieve that position.
+Added: In April 2023, USF entered into two two-year rate cap
+Added: agreements, which will each mature on April 30, 2025 with a total notional amount of $450 million .
+Added: The interest rate cap agreements will effectively cap the interest rate on approximately 24% of the principal amount of the Term Loan Facilities.
+Added: The Company’s maximum exposure to the variable component of the interest rate on the Term Loan Facilities will be 5% on the notional amount covered by the interest rate cap agreements.
+Added: We may, in the future, enter into additional interest rate hedges, the risks of which include changes in the interest rates affecting the fai r value of such instruments, potential increases in interest expense due to market increases in floating interest rates and the creditworthiness of the counterparties.
+Added: Following the Intercontinental Exchange Benchmark Administration’s announcement that it will cease publication of the U.S.
+Added: dollar LIBOR tenors as of June 30, 2023, we evaluated the impact of such announcement and the use of alternative reference rates on our existing contracts, including with respect to our term loan credit agreement.
+Added: On June 1, 2023, we entered into an amendment to our term loan credit agreement to replace the LIBOR-based interest rate option included in the term loan credit agreement with an interest rate option based upon the Term Secured Overnight Financing Rate (“Term SOFR”).
+Added: Term SOFR is a relatively new reference rate and has a very limited history.
+Added: The future performance of Term SOFR cannot be predicted based on its limited historical performance.
+Added: As a result, we are unable to predict the impact of using alternative reference rates and corresponding rate risk as of this time.
+Added: After considering interest rate caps that fixed the interest rate on a total notional amount of $450 million of the current principal amount of the Term Loan Facilities, approximately 30% of the principal amount of our debt bore interest at floating rates based on Term SOFR or an alternative reference rate, as defined in our credit agreements, as of December 30, 2023.
A hypothetical 1% change in the applicable rate would cause the interest expense on our floating rate debt to change by approximately $16 million per year (see Note 11, Debt, in our consolidated financial statements).
−Removed: On March 5, 2021, the IBA, the administrator of LIBOR, announced that it will cease publication of U.S.
−Removed: dollar LIBOR tenors as of June 30, 2023 (instead of December 31, 2021), for the most common tenors (overnight and one, three, six and twelve months) and it will cease publication of U.S.
−Removed: dollar LIBOR tenors for less common tenors (one week and two months) as well as all tenors of non-U.S.
−Removed: dollar LIBOR as of December 31, 2021.
−Removed: We are unable to predict the impact of using alternative reference rates and corresponding rate risk as of this time.
Fuel Price Risk
3 unchanged sentences
Fuel costs related to outbound deliveries approximated $191 million during the fiscal year ended December 30, 2023.
−Removed: Our activities to minimize fuel cost risk include route optimization, improving fleet utilization and assessing fuel surcharges.
+Added: Our activities to minimize fuel cost risk include route optimization, improving fleet utilization, assessing fuel surcharges and enhancing fleet technology and transitioning to alternative fuel sources, including electric vehicles.
We typically directly offset approximately 40% of the increases in fuel costs through fuel surcharges to customers.
3 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.