1 unchanged sentence
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.
−Removed: We use hedge agreements to manage a portion of our risks related to interest rates and fuel prices.
+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.
−Removed: At September 30, 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.
+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.
+Added: At March 31, 2022, 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.
Interest Rate
17 unchanged sentences
Fair value sensitivity is not necessarily indicative of the ultimate cash flow or earnings effect we would recognize from the assumed market rate movements.
−Removed: We are exposed to cash flow risk due to changes in interest rates with respect to the unhedged floating rate balances owed at September 30, 2021 and December 31, 2020, of $434.9 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
−Removed: as of September 30, 2021 and December 31, 2020, would decrease our annual pre-tax income by approximately $4.3 million and $0.1 million, respectively.
+Added: We are exposed to cash flow risk due to changes in interest rates with respect to the unhedged floating rate balances owed at March 31, 2022 and December 31, 2021, of $886.6 million and $603.9 million, respectively, including floating rate debt under our Credit Agreement.
+Added: A one percentage point increase in interest rates on our variable-rate debt as of March 31, 2022 and December 31, 2021, would decrease our annual pre-tax income by approximately $8.9 million and $6.0 million, respectively.
All of our remaining debt instruments are at fixed rates, or effectively fixed under the interest rate swap agreements described above;
3 unchanged sentences
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.
−Removed: At September 30, 2021, we had no fuel hedge agreements in place;
+Added: At March 31, 2022, we had no fuel hedge agreements in place;
however, we have entered into fixed price fuel purchase contracts for 2022 as described below.
4 unchanged sentences
Fair value sensitivity is not necessarily indicative of the ultimate cash flow or earnings effect we would recognize from the assumed market rate movements.
−Removed: During the three month period of October 1, 2021 to December 31, 2021, we expect to purchase approximately 10.2 million gallons of fuel at market prices;
−Removed: therefore, a $0.10 per gallon increase in the price of fuel over the remaining three months in 2021 would decrease our pre-tax income during this period by approximately $1.0 million.
+Added: During the nine month period of April 1, 2022 to December 31, 2022, we expect to purchase approximately 33.4 million gallons of fuel at market prices;
+Added: therefore, a $0.10 per gallon increase in the price of fuel over the remaining nine months in 2022 would decrease our pre-tax income during this period by approximately $3.3 million.
We market a variety of recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles and ferrous and aluminum metals.
1 unchanged sentence
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 nine months ended September 30, 2021 and 2020, would have had a $12.6 million and $5.8 million impact on revenues for the nine months ended September 30, 2021 and 2020, 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 three months ended March 31, 2022 and 2021, would have had a $6.1 million and $3.1 million impact on revenues for the three months ended March 31, 2022 and 2021, 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.