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, and to a lesser extent, foreign currency exchange rate risks.
+Added: In the normal course of business, we are exposed to market risk, including changes in interest rates, prices of certain commodities and foreign currency exchange rate risks.
We use hedge agreements to manage a portion of our risks related to interest rates.
2 unchanged sentences
We monitor our hedge positions by regularly evaluating the positions at market and by performing sensitivity analyses over the unhedged variable rate debt positions.
−Removed: 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.
+Added: At December 31, 2022, our derivative instruments included five 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
+Added: Date Entered (b)
+Added: Rate Paid (a)
Effective Date
Expiration Date
−Removed: 1-month LIBOR
−Removed: 1-month LIBOR
−Removed: 1-month LIBOR
−Removed: February 2020
+Added: 1-month Term SOFR
+Added: November 2022
+Added: 1-month Term SOFR
+Added: November 2022
February 2023
−Removed: 1-month LIBOR
−Removed: 1-month LIBOR
+Added: 1-month Term SOFR
+Added: November 2022
+Added: 1-month Term SOFR
+Added: November 2022
December 2018
−Removed: 1-month LIBOR
−Removed: Plus applicable margin.
−Removed: On September 28, 2020, we terminated four of our interest rate swaps with notional amounts of $150.0 million, $150.0 million, $50.0 million and $50.0 million, each of which would have expired in January 2021.
+Added: 1-month Term SOFR
+Added: November 2022
+Added: (a) Plus applicable margin.
+Added: (b) In October 2022, we amended the reference rate in all of our outstanding interest rate swap contracts to replace One-Month LIBOR with One-Month Term SOFR and certain credit spread adjustments.
+Added: We did not record any gains or losses upon the conversion of the reference rates in these interest rate swap contracts, and we believe these amendments will not have a material impact on our consolidated financial statements.
+Added: On September 28, 2020, we terminated four of our interest rate swaps with notional amounts totaling $400.0 million, which would have expired in January 2021.
As a result of terminating these interest rate swaps, we made total cash payments of $0.9 million to the counterparties of the swap agreements.
5 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 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
−Removed: December 31, 2021 and 2020, would decrease our annual pre-tax income by approximately $6.0 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 December 31, 2022 and 2021, of $1.115 billion and $603.9 million, respectively, including floating rate
+Added: debt under our Credit Agreement and Term Loan Agreement.
+Added: A one percentage point increase in interest rates on our variable-rate debt as of December 31, 2022 and 2021, would decrease our annual pre-tax income by approximately $11.1 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;
4 unchanged sentences
At December 31, 2022, we had no fuel hedge agreements in place;
−Removed: however, we have entered into fixed price fuel purchase contracts for 2022 as described below.
−Removed: For the year ending December 31, 2022, we expect to purchase approximately 85.0 million gallons of fuel, of which 45.0 million gallons will be purchased at market prices and 40.0 million gallons will be purchased under our fixed price fuel purchase contracts.
+Added: however, we have entered into fixed price diesel fuel purchase contracts for 2023 as described below.
+Added: For the year ending December 31, 2023, we expect to purchase approximately 89.2 million gallons of diesel fuel, of which 47.1 million gallons will be purchased at market prices and 42.1 million gallons will be purchased under our fixed price diesel fuel purchase contracts.
We have performed sensitivity analyses to determine how market rate changes will affect the fair value of our unhedged, market rate diesel fuel purchases.
2 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: With respect to the approximately 45.0 million gallons of unhedged fuel we expect to purchase in 2022 at market prices, a $0.10 per gallon increase in the price of fuel over the year would decrease our pre-tax income during this period by approximately $4.5 million.
+Added: With respect to the approximately 47.1 million gallons of unhedged diesel fuel we expect to purchase in 2023 at market prices, a $0.10 per gallon increase in the price of diesel fuel over the year would decrease our pre-tax income during this period by approximately $4.7 million.
We market a variety of recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles and ferrous and aluminum metals.
7 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.