What changed in this filing

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Item 1A. Risk Factors

2022-02-18 compared with 2021-02-19 · 66 added, 82 removed, 318 unchanged (32% of the section changed)

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Our business, financial condition and results of operations could be adversely affected by difficult global economic conditions and significant volatility in the capital, credit and commodities markets and in the overall economy.

Adverse events affecting the health of the economy, including sovereign debt and economic crises, terrorism, rising protectionism, trade conflict including import and export restrictions, tariffs and other trade barriers or retaliatory actions, pandemics and the threat of war, could have a negative impact on the health of the global economy.

Adverse events affecting the health of the economy, including inflationary pressures, supply chain issues, labor market shortages, trade conflicts including, export and import restrictions, tariffs and other trade barriers, the COVID-19 pandemic or other pandemics and the threat of war, sovereign debt and economic crises, terrorism and protectionism could have a negative impact on the health of the global economy.

These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions or on the stability of global financial markets which may affect us and our customers.

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Periods of high demand, tight supply and increasing operating margins tend to result in increases in capacity and production until supply exceeds demand, generally followed by periods of oversupply and declining prices.

While we strive to maintain or increase our profitability by reducing costs through improving production efficiency, by emphasizing higher margin products and by controlling transportation, selling and administration expense,

we cannot assure you that these efforts will be sufficient to offset fully the effect of possible decreases in pricing on our operating results.

While we strive to maintain or increase our profitability by reducing costs through improving

production efficiency, by emphasizing higher margin products and by controlling transportation, selling and administration expense, we cannot assure you that these efforts will be sufficient to offset fully the effect of possible decreases in pricing on our operating results.

As a result of potential cyclicality, we cannot assure you that pricing or profitability in the future will be comparable to any historical period, including the most recent period shown in our operating results.

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Any such unplanned downtime at any of our production facilities may adversely affect our business, financial condition and results of operations.

Our production facilities and logistics operations are also subject to the risk of catastrophic loss and material disruptions due to unanticipated events, such as unexpected repairs or other operational and logistical problems, severe weather conditions, personal injury or major accidents, prolonged power failures, chemical spills, fires, explosions, acts of terrorism, earthquakes, pandemics or other natural disasters, that we or a third party on which we rely may experience.

Our production facilities and logistics operations, as well as those of our suppliers or other third parties on which we rely, are also subject to the risk of catastrophic loss and material disruptions due to unanticipated events, such as unexpected repairs or other operational and logistical problems, severe weather conditions, personal injury or major accidents, prolonged power failures, chemical spills, fires, explosions, acts of terrorism, earthquakes, pandemics or other natural disasters, that we or such third party may experience.

While we seek to mitigate our risk of unplanned interruptions, we have experienced such unplanned interruptions in the past with respect to both our operations and the operations of third parties as described in our periodic reports filed with the SEC, and there is no assurance that we or other third parties on which we rely will not experience unplanned interruptions in the future.

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Our capital requirements will depend on many factors, including acceptance of and demand for our products, the extent to which we invest in new technology, new products and R&D projects and the status and timing of these developments.

Our capital projects and other growth investments may have lengthy deadlines during which market conditions may deteriorate between the capital expenditure’s approval date and the conclusion of the project, negatively impacting projected returns on our investments.

Delays or cost increases related to capital and other spending programs, including those relating to plant improvements and development of new technologies, could materially

adversely affect our ability to achieve forecasted operating results.

Our capital projects and other growth investments may have lengthy deadlines during which market conditions may deteriorate between the capital expenditure’s approval date and the

conclusion of the project, negatively impacting projected returns on our investments.

Delays or cost increases related to capital and other spending programs, including those relating to plant improvements and development of new technologies, could materially adversely affect our ability to achieve forecasted operating results.

In addition, we may need to seek additional capital in the future, and debt or equity financing may not be available to us on terms we find acceptable, if at all.

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However, we may need additional capital resources in the future, and if we are unable to obtain sufficient resources for our operating needs, capital expenditures and other cash requirements for any reason, our business, financial condition and results of operations could be adversely affected.

Our results of operations have been, and in the future may be, materially adversely impacted by the coronavirus (COVID-19) pandemic and the measures implemented to contain the spread of the virus.

Our results of operations may be materially adversely impacted by the coronavirus (COVID-19) pandemic and the measures implemented to contain the spread of the virus.

The continued spread of the coronavirus (COVID-19) pandemic and the resulting containment measures have created significant volatility, uncertainty and economic disruption globally and have had, and in the future may have, a material impact on the Company's results of operations.

Department of Homeland Security has designated our industry as "essential critical infrastructure" during the response to COVID-19 for both public health and safety as well as community well-being.

Department of Homeland Security designated our industry as "essential critical infrastructure" during the response to COVID-19 for both public health and safety as well as community well-being.

The Company takes its obligation to produce materials that support the broader population seriously, all while maintaining a prioritized focus on the health and safety of its employees and the communities in which it operates, and assuring the continuity of its business operations.

As a global provider of products that are key inputs for our customers’ processes serving a variety of end-markets, a pandemic presents obstacles that can adversely affect our supply chain effectiveness and efficiencies, our manufacturing operations and customer demand for our products and, ultimately, our financial results.

We believe we are positioned to respond to and mitigate the potential impacts of rapidly evolving market dynamics.

While the Company was not materially impacted by COVID-19 in the first quarter of 2020, the Company experienced lower demand, particularly in nylon, caprolactam and phenol, during the second quarter of 2020, resulting in a reduction of utilization rates and a decrease in overall sales volume compared to the prior year period, primarily related to global markets and the economic impact of COVID-19.

During the second half of 2020, the Company experienced an improvement of demand to approximately pre-COVID-19 levels;

however, there is no assurance that sales volumes will remain stable or that demand will fully recover or continue given the recent resurgence of COVID-19 cases in the U.S.

and abroad, increases in restrictions imposed by governments, or other factors resulting from sustained, or further resurgences in, infection rates.

While the COVID-19 pandemic may impact the Company's results of operations, financial position and liquidity in the near-term and potentially beyond, we are unable to predict the extent or nature of these impacts at this time.

The extent of the future and overall impact from the COVID-19 pandemic on our business depends on numerous evolving factors and future developments that cannot be accurately predicted at this time, including, but not limited to:

the scope and duration of the pandemic, including the extent of any resurgences, and the pace of recovery;

the timing of the development and distribution of an effective vaccine or treatments for COVID-19;

In the second quarter of 2020, we experienced lower demand resulting from the economic impact of COVID-19, although demand improved to pre-COVID-19 levels in the second half of 2020.

While the COVID-19 pandemic may impact the Company's results of operations, financial position and liquidity, we are unable to predict the extent or nature of these impacts at this time.

The extent of any impact from the COVID-19 pandemic on our business depends on numerous evolving factors and future developments that cannot be accurately predicted at this time, including, but not limited to:

the scope and duration of the pandemic, including the spread of the virus and its variants, the extent of any resurgences, and the pace of recovery;

the distribution, efficacy, availability and public acceptance of vaccines, boosters or treatments for COVID-19;

governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic, including our business continuity and cash optimization plans that have been, and may in the future be, implemented;

the impact of social and economic restrictions and other containment measures taken to combat virus transmission;

the impact on labor markets and our ability, and the ability of our suppliers and other third parties on which we rely, to retain and hire employees;

inflationary pressures;

supply chain disruptions;

the effect on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.;

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and risks associated with employees working remotely or operating with a reduced workforce.

Customers may also slow down decision-making, delay planned work or seek to terminate existing agreements.

Due to difficult market conditions created by the pandemic, there can be no assurance that access to credit or the capital markets would be available or sufficient, and as such, if needed, we may not be able to successfully obtain additional financing on reasonable terms, at a reasonable cost, or at all.

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The COVID-19 pandemic, as well as future pandemics, could also cause or contribute to the other risk factors identified in this Form 10-K, as may be amended in our subsequent Quarterly Reports on Form 10-Q, which in turn could materially adversely affect our business, financial condition, results of operations, cash flow, liquidity and/or stock price.

Further, the COVID-19 pandemic may also affect our business, operations and financial results in a manner that is not presently known to us or that we currently do not consider to present significant risks to our operations.

Further, the COVID-19 pandemic

may also affect our business, operations and financial results in a manner that is not presently known to us or that we currently do not consider to present significant risks to our operations.

For additional information regarding the impact of COVID-19 on our business, financial condition, results of operations, cash flow and liquidity, see the discussions under "Recent Developments - COVID-19" in “Item 7.

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Our largest customer is Shaw, one of the world’s largest consumers of Nylon 6 resin and caprolactam.

We sell Nylon 6 resin and caprolactam to Shaw under a long-term agreement.

We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement.

We typically sell to other customers under master services agreements, with primarily one-year terms, or by purchase orders.

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There are hazards associated with chemical manufacturing and the related storage and transportation of raw materials, products and wastes.

These hazards could lead to an interruption or suspension of operations and could have an adverse effect on the productivity and profitability of a particular manufacturing facility, or on us as a whole.

While we endeavor to provide adequate protection for the safe handling of these materials, issues could be created by various events, including natural disasters, severe weather events, acts of sabotage and performance by third parties, and as a result, we could face potential hazards such as piping and storage tank leaks and ruptures, mechanical failure, employee exposure to hazardous substances and chemical spills and other discharges or releases of toxic or hazardous substances or gases.

These hazards could lead to an interruption or suspension of operations and could have an adverse effect on the productivity

and profitability of a particular manufacturing facility, or on us as a whole.

While we endeavor to provide adequate protection for the safe handling of these materials, issues could be created by various events, including natural disasters, severe weather events, acts of sabotage, human error, and performance by third parties, and as a result, we could face potential hazards such as piping and storage tank leaks and ruptures, mechanical failure, employee exposure to hazardous substances and chemical spills and other discharges or releases of toxic or hazardous substances or gases.

These hazards may cause personal injury and loss of life, damage to property and contamination of the environment, which could lead to government fines, work stoppage injunctions, lawsuits by injured persons, damage to our public reputation and brand and diminished product acceptance.

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Our business, financial condition and results of operations could be adversely affected by litigation and other commitments and contingencies.

We face risks arising from various unasserted and asserted litigation matters, including, but not limited to, product liability and claims for third-party property damage or personal injury stemming from alleged environmental or other torts.

We have noted a nationwide trend in purported class actions against chemical manufacturers generally seeking relief such as medical monitoring, property damages, off-site remediation and punitive damages arising from alleged environmental or other torts without claiming present personal injuries.

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Any of these transactions may be complex, time consuming and expensive, and may present numerous challenges and risks.

In 2021, we completed the acquisition of certain assets of Commonwealth Industrial Services, Inc., and in February 2022, we announced the signing of a definitive agreement to acquire U.S.

Lack of control over the actions of our business partners in any strategic relationship, joint venture or collaboration, could significantly delay the introduction of planned products or otherwise make it difficult or impossible to realize the expected benefits of such relationship.

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However, we may be unable to obtain protection for our intellectual property in such key jurisdictions.

Although we own and have applied for numerous patents and trademarks, we may have to rely on judicial enforcement of our patents and other

proprietary rights.

Although we own and have applied for numerous patents and trademarks, we may have to rely on judicial enforcement of our patents and other proprietary rights.

Our patents and other intellectual property rights may be challenged, invalidated, circumvented, and rendered unenforceable or otherwise compromised.

If we must take legal action to protect, defend or enforce our intellectual property rights, any suits or proceedings could result in significant costs and diversion of our resources and our management’s attention, and we may not prevail in any such suits or proceedings.

A failure to protect, defend or enforce our intellectual property could have an adverse effect on our business, financial condition and results of operations.

A failure to protect, defend or enforce our intellectual property could have an adverse

effect on our business, financial condition and results of operations.

Similarly, third parties may assert claims against us and our customers and distributors alleging our products infringe upon third-party intellectual property rights.

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While our standard vendor terms and conditions include certain safeguards, including requiring the use of appropriate security measures to prevent unauthorized use or disclosure of our data, a breach at these third-party vendors may occur.

The potential consequences of a material cybersecurity incident of our own systems or the systems of those with whom we do business, include

reputational consequences, safety risk, physical damage to our assets, claims from and litigation with third parties, fines levied by governmental authorities, diminution in the value of our investment in research, development and engineering, and increased cybersecurity protection and remediation costs, which in turn could, individually or in the aggregate, adversely affect our competitiveness, plant operations, business, financial condition and results of operations.

The potential consequences of a material cybersecurity incident of our own systems or the systems of those with whom we do business, include reputational consequences, safety risk, physical damage to our assets, claims from and litigation with third parties, fines levied by governmental authorities, diminution in the value of our investment in research, development and engineering, and increased cybersecurity protection and remediation costs, which in turn could, individually or in the aggregate, adversely affect our

competitiveness, plant operations, business, financial condition and results of operations.

We maintain cyber liability insurance, but this insurance may not be sufficient to cover the losses that may result from a cybersecurity incident.

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Furthermore, our credit facility currently uses LIBOR as a benchmark for establishing the interest rate.

LIBOR will be discontinued by the end of 2021 and other regulators have suggested reforming or replacing LIBOR with other benchmark rates.

Certain USD LIBOR rates ceased to be published as of December 31, 2021 while the remaining USD LIBOR rates will cease to be published on June 30, 2023, as announced by LIBOR's regulators and administrators.

In response to the phase-out of LIBOR, regulators have suggested reforming or replacing LIBOR with other benchmark rates.

The consequences of these developments with respect to LIBOR cannot be entirely predicted but could cause volatility or disruption in the overall financial market, result in an increase in the cost of our variable rate debt or adversely affect our cost of funding, any of which could adversely affect our financial condition and results of operations.

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Risks Relating to Legal and Regulatory Matters

Extensive environmental, health and safety laws and regulations applicable to our operations, including initiatives related to discharges into the air and water, hazardous waste, sustainability, global warming and climate change, may result in substantial costs and unanticipated loss or liability, which could adversely affect our business, financial condition and results of operations.

Various federal, state, local and foreign governments regulate the discharge of materials into the environment and can impose substantial fines and criminal sanctions for violations and require installation of costly equipment or operational changes to limit emissions and/or decrease the likelihood of accidental hazardous substance releases.

If we are found to be in violation of these laws or regulations, we may incur substantial costs, including fines, damages, criminal or civil sanctions and remediation costs, or experience interruptions in our operations.

Business - Regulation and Environmental Matters” for more information on the environmental laws and regulations to which we are subject.

Primarily because of past operations at our current manufacturing locations and other locations used in our operations as currently conducted, we may be subject to potentially material liabilities related to the remediation of environmental hazards and to claims of personal injuries or property damages that may have been or may be caused by hazardous substance releases and exposures or other hazardous conditions.

Lawsuits, claims and costs involving these matters may arise in the future.

In addition, changes in laws, regulations and enforcement of policies, the discovery of previously unknown contamination or other information related to individual sites, the establishment of stricter state or federal toxicity standards with respect to certain contaminants or the imposition of new clean-up requirements or remedial techniques could require us to incur additional costs in the future that would have a negative effect on our business, financial condition and results of operations.

Additionally, there are substantial uncertainties as to the nature, stringency and timing of any future regulations or changes in regulations, including discharges into the air and water, handling and disposal of hazardous wastes, remediation of soil and groundwater, and greenhouse gas (“GHG”) and water nutrient regulations.

Due to the concerns about risks associated with air, water, global warming and climate change, more stringent regulations may require us to incur additional capital expenditures or make changes to our operating activities that would increase our operating costs, reduce our efficiency, limit our output, increase our costs for or limit the availability of energy, raw materials or transportation or otherwise adversely affect our business, financial condition and results of operations.

If enacted, more stringent GHG limitations are likely to have a significant impact on us because our production facilities emit GHGs such as carbon dioxide and nitrous oxide and because natural gas, a fossil fuel, is a primary raw material used in our production process.

To the extent that GHG or other restrictions are not imposed in countries where our competitors operate or are less stringent than regulations that may be imposed in the United States, our competitors may have cost or other competitive advantages over us.

In addition, increasing regulation of fuel emissions could substantially increase the distribution and supply chain costs associated with our products.

Consequently, legislative and regulatory programs to reduce emissions of GHG could have an adverse effect on our business, financial condition and results of operations.

Further, there has been public discussion that climate change may be associated with more extreme weather conditions, such as increased frequency and severity of storms, droughts, and floods.

Extreme weather conditions have and in the future may interfere with our operating activities, disrupt our maritime logistics and intraplant supply chain, increase our costs of operations or reduce the efficiency of our operations, and potentially increase costs for insurance coverage in the aftermath of such conditions.

Long-term, higher average global temperatures could result in changes in natural resources, growing seasons, precipitation patterns, weather patterns, species distributions, water availability, sea levels, and biodiversity.

These impacts could cause changes in supplies of raw materials used to maintain our production capacity and could lead to possible increased sourcing costs in the future.

We continually assess our manufacturing plants for risks and opportunities to increase our preparedness for climate change.

We are continuing to evaluate sea level rise and storm surge at our plants to understand potential impacts and response actions that may need to be taken.

Significant physical effects of climate change could also have an indirect effect on our financing and operations by disrupting the transportation or process-related services provided by companies or suppliers with whom we have a business relationship.

There is also a risk that one or more of our key raw materials or one or more of our products may be found to have, or be characterized as having, a toxicological or health-related impact on the environment or on our customers or employees, which could potentially result in us incurring liability in connection with such characterization and the associated effects of any toxicological or health-related impact.

If such a discovery or characterization occurs, we may incur increased costs to comply with new regulatory requirements, or the relevant materials or products, including products of our customers that incorporate our materials or products, may be recalled or banned.

Changes in laws and regulations, or their interpretations, and our customers’ perception of such changes or interpretations may also affect the marketability of certain of our products.

Additionally, sales of acetone, which is a List II Chemical under TSCA, are regulated by the Drug Enforcement Act.

This classification subjects us to periodic audits by the Drug Enforcement Administration and ongoing restrictions on our acetone sales activities.

Heightened public focus on climate change, sustainability, and environmental issues has also led to increased government regulation and may cause certain of our key stakeholders to require that we meet certain standards, including customers or suppliers who may impose environmental standards on us as a part of doing business with them, all of which could increase the costs incurred by our customers to use our products and otherwise limit the use of these products, which could lead to decreased demand for these products.

Our operations are dependent on numerous required permits and approvals.

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Any significant changes in international trade policies, practices or trade remedies, especially those instituted in our target markets or markets where our major customers are located, such as the United States-Mexico-Canada Agreement which became effective in July 2020, could potentially increase the price of our products relative to our competitors or decrease our customers’ demand for our products, which in turn may adversely affect our business, financial condition and results of operations.

emissions and/or decrease the likelihood of accidental hazardous substance releases.

Business - Regulation and Environmental Matters” for more information on the environmental laws and regulations to which we are subject.

Lawsuits, claims and costs involving these matters may arise in the future.

Due to the concerns about risks associated with air, water, global warming and climate change, more stringent regulations, including those which could result from the recent change in the U.S.

presidential administration, may require us to incur additional capital expenditures or make changes to our operating activities that would increase our operating costs, reduce our efficiency, limit our output, increase our costs for or limit the availability of energy, raw materials or transportation or otherwise adversely affect our business, financial condition and results of operations.

In addition, increasing regulation of fuel emissions could substantially increase the distribution and supply chain costs associated with our products.

Consequently, legislative and regulatory programs to reduce emissions of GHG could have an adverse effect on our business, financial condition and results of operations.

Further, there has been public discussion that climate change may be associated with more extreme weather conditions, such as increased frequency and severity of storms, droughts, and floods.

Extreme weather conditions can interfere with our operating activities, disrupt our maritime logistics and intraplant supply chain, increase our costs of operations or reduce the efficiency of our operations, and potentially increase costs for insurance coverage in the aftermath of such conditions.

These impacts could cause changes in supplies of raw materials used to maintain our production capacity and could lead to possible increased sourcing costs in the future.

We continually assess our manufacturing plants for risks and opportunities to increase our preparedness for climate change.

We are continuing to evaluate sea level rise and storm surge at our plants to understand potential impacts and response actions that may need to be taken.

Changes in laws and regulations, or their interpretations, and our customers’ perception of such changes or interpretations may also affect the marketability of certain of our products.

Additionally, sales of acetone, which is a List II Chemical under TSCA, are regulated by the Drug Enforcement Act.

This classification subjects us to periodic audits by the Drug Enforcement Administration and ongoing restrictions on our acetone sales activities.

Failure to maintain effective internal controls could adversely impact our ability to meet our reporting requirements.

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Effective internal controls are necessary for us to provide reasonable assurance with respect to our financial reports and to effectively prevent fraud.

Internal controls over financial reporting may not prevent or detect misstatements because of inherent limitations,

including the possibility of human error, the circumvention or overriding of controls, or fraud.

Internal controls over financial reporting may not prevent or detect misstatements because of inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud.

Therefore, even effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements.

If we fail to maintain the effectiveness of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business and operating results could be harmed, we could fail to meet our reporting obligations, and there could be a material adverse effect on our stock price.

to maintain the effectiveness of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business and operating results could be harmed, we could fail to meet our reporting obligations, and there could be a material adverse effect on our stock price.

The ongoing process of implementing internal controls requires significant attention from management and we cannot be certain that these measures will ensure that we implement and maintain adequate controls over our financial processes and reporting in the future.

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If we fail to obtain the quality of services necessary to operate effectively or incur greater costs in obtaining these services, our profitability, financial condition and results of operations may be materially and adversely affected.

Risks Relating to the Spin-Off

Our spin-off could result in significant tax liability.

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stockholder who received our common stock in the distribution would generally be treated as having received a distribution in an amount equal to the fair market value of our common stock received, which would generally result in (1) a taxable dividend to the U.S.

stockholder to the extent of that

stockholder to the extent of that U.S.

stockholder’s pro rata share of Honeywell’s current and accumulated earnings and profits;

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Any such indemnification obligation could adversely affect our business, financial condition and results of operations.

We have limited operating history as an independent, publicly-traded company, and our historical consolidated financial information is not necessarily representative of the results we would have achieved as an independent, publicly-traded company and may not be a reliable indicator of our future results.

We derived the historical consolidated financial information prior to our spin-off included in “Item 6.

Selected Financial Data” of this Form 10-K from Honeywell’s consolidated financial statements, and this information does not necessarily reflect the results of operations and financial position we would have achieved as an independent, publicly-traded company during the periods presented, or those that we will achieve in the future.

This is primarily because of the following factors:

• Prior to the spin-off, we operated as part of Honeywell’s broader corporate organization, and Honeywell performed various corporate functions for us.

Our historical consolidated financial information prior to the spin-off reflects allocations of corporate expenses from Honeywell for these and similar functions.

These allocations may not reflect the costs we incur for similar services as an independent, publicly-traded company.

• Our historical consolidated financial information prior to the spin-off does not reflect certain changes that we experienced as a result of our separation from Honeywell, including changes in the financing, cash management, operations, cost structure and personnel needs of our business.

There were certain benefits derived from Honeywell’s operating diversity, size, purchasing power, borrowing leverage and available capital for investments that may not be available to us in all instances, as an independent entity.

In addition, our historical consolidated financial data does not include an allocation of interest expense comparable to the interest expense we will incur as a result of the series of internal transactions which were effected in order for us to hold, directly or through our subsidiaries, the businesses constituting Honeywell’s Resins and Chemicals business and related operations, and the spin-off, including interest expense in connection with the incurrence of indebtedness at AdvanSix.

Following the spin-off, we are also responsible for the additional costs associated with being an independent, publicly- traded company, including costs related to corporate governance, investor and public relations and public reporting.

Additionally, we may be

required to indemnify Honeywell for amounts related to liabilities allocated to, or assumed by, us in connection with our spin-off.

While we were profitable as part of Honeywell, we cannot assure you that our profits will continue at a similar level as an independent, publicly-traded company.

Risks Relating to Our Common Stock and the Securities Market

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• Our level of indebtedness, our ability to make payments on or service our indebtedness and our ability to obtain financing as needed;

• Our ability to repurchase our common stock;

• Our ability to pay dividends or repurchase our common stock;

• Our ability to retain and recruit qualified personnel;

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Furthermore, the program does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and may be suspended or discontinued at any time and any suspension or discontinuation could cause the market price of our stock to decline.

We will evaluate whether to pay cash dividends on our common stock in the future, and the terms of our indebtedness could limit our ability to pay dividends on our common stock.

We will evaluate whether to pay cash dividends to our stockholders and the timing, declaration, amount and payment of future dividends to stockholders, if any, will fall within the discretion of our Board.

Among the items we will consider when establishing a dividend policy will be the capital intensive nature of our business and opportunities to retain future earnings for use in the operation of our business and to fund future growth.

We cannot guarantee the timing, declaration, amount or payment of any dividends, and the terms of our indebtedness could limit our ability to pay dividends on our common stock.

The timing, declaration, amount and payment of dividends to stockholders, if any, will fall within the sole discretion of our Board.

Among the items considered when establishing a dividend policy will be the capital intensive nature of our business and opportunities to retain future earnings for use in the operation of our business and to fund future growth.

Additionally, the terms of our indebtedness limit our ability to pay cash dividends.

There can be no assurance that we will pay a dividend in the future or, if we do commence paying dividends, that we will continue to pay any such dividend.

There can be no assurance that we will continue to pay a dividend in the future.

Stockholder percentage ownership in AdvanSix may be diluted in the future.

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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-K

Item 1A. Risk Factors