What changed in this filing

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2023-08-08 compared with 2023-05-09 · 27 added, 30 removed, 32 unchanged (64% of the section changed)

9 unchanged sentences

We produce alcohol and essential ingredients.

business is sensitive to changes in the prices of ethanol and corn.

In the ordinary course of business, we may enter into various types

of transactions involving financial instruments to manage and reduce the impact of changes in ethanol and corn prices.

We do not enter

into derivatives or other financial instruments for trading or speculative purposes.

business is sensitive, in particular, to changes in the prices of ethanol and corn.

In the ordinary course of business, we may enter into

various types of transactions involving financial instruments to manage and reduce the impact of changes in ethanol and corn prices.

do not enter into derivatives or other financial instruments for trading or speculative purposes.

We are subject to market risk with respect to ethanol

4 unchanged sentences

carbon intensity;

government regulation;

and consumer demand for alternative fuels.

Our alcohol sales are priced using contracts

that are either based on a fixed price or an indexed price tied to a specific market, such as the CBOT or the Oil Price Information Service.

Under these fixed-priced arrangements, we are exposed to risk of a decrease in the market price of ethanol between the time the price

is fixed and the time the alcohol is sold.

government regulation, including governmental mandates for renewable fuel use;

and consumer demand for alternative

Our ethanol sales are priced using contracts that are either based on a fixed price or an indexed price tied to a specific market,

such as the CBOT or the Oil Price Information Service.

Under these fixed-priced arrangements, we are exposed to the risk of a decrease

in the market price of ethanol between the time the price is fixed and the time the ethanol is sold.

We satisfy our physical corn needs, the principal

7 unchanged sentences

wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect

to agriculture and international trade, and global supply and demand.

Under the fixed price arrangements, we assume the risk of a decrease

in the market price of corn between the time the price is fixed and the time the corn is utilized.

to agriculture and international trade, including trade and other sanctions that may be levied against grain producing countries, and

global supply and demand.

Under the fixed price arrangements, we assume the risk of a decrease in the market price of corn between the

time the price is fixed and the time the corn is utilized.

Essential ingredients are sensitive to various

demand factors such as numbers of livestock on feed, prices for feed alternatives, and supply factors, primarily production of ethanol

co-products by ethanol plants and other sources.

demand factors such as numbers of livestock on feed, prices for feed alternatives, and supply factors, primarily the production of alcohol

co-products by plants and other sources.

As noted above, we may attempt to reduce the market

2 unchanged sentences

as well as the daily management of physical corn supplies.

These derivatives are not designated for special

hedge accounting treatment, and as such, the changes in the fair values of these contracts are recorded on the balance sheet and recognized

immediately in cost of goods sold.

We recognized net losses of $1.8 million and net gains of $5.3 million related to the changes in the

fair values of these contracts for the three months ended March 31, 2023 and 2022, respectively.

We prepared a sensitivity analysis as of March

These derivatives are

not designated for special hedge accounting treatment, and as such, the changes in the fair values of these contracts are recorded

on the balance sheet and recognized immediately in cost of goods sold.

We recognized net gains of $5.2 million and $21.9 million

related to the changes in the fair values of these contracts for the six months ended June 30, 2023 and 2022, respectively.

At June 30, 2023, we prepared a sensitivity analysis

to estimate our exposure to ethanol and corn.

Market risk related to these factors was estimated as the potential change in pre-tax

income resulting from a hypothetical 10% adverse change in the prices of our expected ethanol and corn volumes.

The analysis uses average

CBOT prices for the year and does not factor in future contracted volumes.

The results of this analysis for the three months ended March

Market risk related to these factors was estimated as the potential change in pre-tax income

resulting from a hypothetical 10% adverse change in the prices of our expected ethanol and corn volumes.

The analysis uses average CBOT

prices for the year and does not factor in future contracted volumes.

The results of this analysis for the six months ended June 30, 2023,

which may differ materially from actual results, are as follows (in millions):

Unit of Measure

Approximate Adverse

Change to Pre-Tax

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.

What changed 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk