QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: In the normal course of business, we are exposed to market risk, including changes in interest rates and prices of certain commodities.
−Removed: We use hedge agreements to manage a portion of our risks related to interest rates and fuel prices.
+Added: In the normal course of business, we are exposed to market risk, including changes in interest rates and prices of certain commodities, and to a lesser extent, foreign currency exchange rate risks.
+Added: We use hedge agreements to manage a portion of our risks related to interest rates.
While we are exposed to credit risk in the event of non-performance by counterparties to our hedge agreements, in all cases such counterparties are highly rated financial institutions and we do not anticipate non-performance under current market conditions.
We do not hold or issue derivative financial instruments for trading purposes.
−Removed: We monitor our hedge positions by regularly evaluating the positions at market and by performing sensitivity analyses over the unhedged fuel and variable rate debt positions.
+Added: We monitor our hedge positions by regularly evaluating the positions at market and by performing sensitivity analyses over the unhedged variable rate debt positions.
At December 31, 2021, our derivative instruments included six interest rate swap agreements that effectively fix the interest rate on the applicable notional amounts of our variable rate debt as follows (dollars in thousands of U.S.
21 unchanged sentences
We are exposed to cash flow risk due to changes in interest rates with respect to the unhedged floating rate balances owed at December 31, 2021 and 2020, of $603.9 million and $3.7 million, respectively, including floating rate debt under our Credit Agreement.
−Removed: A one percentage point increase in interest rates on our variable-rate debt as of December 31, 2020 and 2019, would decrease our annual pre-tax income by approximately $0.1 million and $7.7 million, respectively.
+Added: A one percentage point increase in interest rates on our variable-rate debt as of
+Added: December 31, 2021 and 2020, would decrease our annual pre-tax income by approximately $6.0 million and $0.1 million, respectively.
All of our remaining debt instruments are at fixed rates, or effectively fixed under the interest rate swap agreements described above;
1 unchanged sentence
The market price of diesel fuel is unpredictable and can fluctuate significantly.
−Removed: Because of the volume of fuel we purchase each year, a significant increase in the price of fuel could adversely affect our business and reduce our operating
+Added: Because of the volume of fuel we purchase each year, a significant increase in the price of fuel could adversely affect our business and reduce our operating margins.
To manage a portion of this risk, we periodically enter into fuel hedge agreements related to forecasted diesel fuel purchases, and we also enter into fixed price fuel purchase contracts.
10 unchanged sentences
Where possible, to reduce our exposure to commodity price risk with respect to recycled materials, we have adopted a pricing strategy of charging collection and processing fees for recycling volume collected from third parties.
−Removed: In the event of a decline in recycled commodity prices, a 10% decrease in average recycled commodity prices from the average prices that were in effect during the years ended December 31, 2020 and 2019, would have had a $8.4 million and $6.3 million impact on revenues for the year ended December 31, 2020 and 2019, respectively.
+Added: In the event of a decline in recycled commodity prices, a 10% decrease in average recycled commodity prices from the average prices that were in effect during the years ended December 31, 2021 and 2020, would have had a $19.6 million and $8.4 million impact on revenues for the years ended December 31, 2021 and 2020, respectively.
We have operations in Canada and, where significant, we have quantified and described the impact of foreign currency translation on components of income, including operating revenue and operating costs.
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.