What changed in this filing

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Item 1. Financial Statements

2023-11-03 compared with 2023-08-04 · 130 added, 88 removed, 369 unchanged (37% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

6 unchanged sentences

Total costs, expenses and other 332,960 466,007 1,073,933 1,361,440

Income before taxes 43,283 85,119 87,511 167,375

Income tax expense 10,555 19,962 19,829 39,145

Net income $ 32,728 $ 65,157 $ 67,682 $ 128,230

Income (loss) before taxes ( 10,053 ) 12,762 77,458 180,138

Income tax expense (benefit) ( 2,076 ) 2,730 17,753 41,876

Net income (loss) $ ( 7,977 ) $ 10,032 $ 59,705 $ 138,262

Earnings per common share

6 unchanged sentences

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in thousands)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Net income $ 32,728 $ 65,157 $ 67,682 $ 128,230

Net income (loss) $ ( 7,977 ) $ 10,032 $ 59,705 $ 138,262

Foreign exchange translation adjustment 197 ( 32 ) 39 ( 10 )

1 unchanged sentence

Other comprehensive income (loss), net of tax 197 25 ( 111 ) 854

Comprehensive income $ 32,603 $ 65,417 $ 67,374 $ 129,059

Comprehensive income (loss) $ ( 7,780 ) $ 10,057 $ 59,594 $ 139,116

See accompanying notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Dollars in thousands, except share and per share amounts)

September 30,

2023 December 31,

28 unchanged sentences

200,000,000 shares authorized;

32,577,862 shares issued and 27,302,873 outstanding at June 30, 2023;

32,597,015 shares issued and 27,055,067 outstanding at September 30, 2023;

31,977,593 shares issued and 27,446,520 outstanding at December 31, 2022

Preferred stock, par value $ 0.01 ;

50,000,000 shares authorized and 0 shares issued and outstanding at June 30, 2023 and December 31, 2022

Treasury stock at par ( 5,274,989 shares at June 30, 2023;

50,000,000 shares authorized and 0 shares issued and outstanding at September 30, 2023 and December 31, 2022

Treasury stock at par ( 5,541,948 shares at September 30, 2023;

4,531,073 shares at December 31, 2022)

9 unchanged sentences

(Dollars in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

6 unchanged sentences

Amortization of deferred financing fees 464 464

Operational asset adjustments ( 4,472 ) —

Changes in assets and liabilities, net of business acquisitions:

19 unchanged sentences

Issuance of common stock 876 1,046

Net cash used for financing activities ( 11,100 ) ( 5,400 )

Net cash (used for) provided by financing activities 5,173 ( 34,340 )

Net change in cash and cash equivalents ( 8,875 ) 9,594

35 unchanged sentences

Balance at June 30, 2023 32,577,862 326 151,706 626,885 ( 53 ) ( 4,505 ) 774,359

Net Income (loss) — — — ( 7,977 ) — — ( 7,977 )

Comprehensive income —

Foreign exchange translation adjustments — — — — — 197 197

Cash-flow hedges — — — — — — —

Other comprehensive income (loss), net of tax — — — — — 197 197

Issuance of common stock 19,153 — 131 — — — 131

Purchase of treasury stock ( 266,959 shares)

— — ( 9,264 ) — ( 2 ) — ( 9,266 )

Stock-based compensation — — 1,391 — — — 1,391

Dividends — — 1 ( 4,351 ) — — ( 4,350 )

Balance at September 30, 2023 32,597,015 $ 326 $ 143,965 $ 614,557 $ ( 55 ) $ ( 4,308 ) $ 754,485

ADVANSIX INC.

26 unchanged sentences

Balance at June 30, 2022 31,961,956 320 192,392 532,246 ( 39 ) ( 5,710 ) 719,209

Net Income — — — 10,032 — — 10,032

Comprehensive income

Foreign exchange translation adjustments — — — — — ( 32 ) ( 32 )

Cash-flow hedges — — — — — 57 57

Pension obligation adjustments — — — — — — —

Other comprehensive income (loss), net of tax — — — — — 25 25

Issuance of common stock 510 — 14 — — — 14

Purchase of treasury stock ( 362,609 shares)

— — ( 13,169 ) — ( 3 ) — ( 13,172 )

Stock-based compensation — — 2,220 — — — 2,220

Dividends — — 171 ( 4,222 ) — — ( 4,051 )

Balance at September 30, 2022 31,962,466 $ 320 $ 181,628 $ 538,056 $ ( 42 ) $ ( 5,685 ) $ 714,277

See accompanying notes to Condensed Consolidated Financial Statements.

13 unchanged sentences

GAAP for complete financial statements.

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of June 30, 2023, and its results of operations for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022.

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of September 30, 2023, and its results of operations for the three and nine months ended September 30, 2023 and 2022 and cash flows for the nine months ended September 30, 2023 and 2022.

The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by U.S.

6 unchanged sentences

In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide the appropriate disclosures.

Our actual closing dates for the three and six months ended June 30, 2023 and 2022 were July 1, 2023 and July 2, 2022, respectively.

Liabilities to creditors to whom we have issued checks that remained outstanding at June 30, 2023 and December 31, 2022 aggregated to $ 3.7 million and $ 9.0 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets.

Our actual closing dates for the three and nine months ended September 30, 2023 and 2022 were September 30, 2023 and October 1, 2022, respectively.

Liabilities to creditors to whom we have issued checks that remained outstanding at September 30, 2023 and December 31, 2022 aggregated to $ 5.0 million and $ 9.0 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets.

The Company was party to three transactions during the third quarter of 2023:

(i) exit from its alliance with Oben Holding Group S.A.

resulting in a pre-tax gain of approximately $ 11.4 million, (ii) notification from a licensee of certain legacy ammonium sulfate technology assets operated at the licensee’s fertilizer manufacturing facility, that it intends to close its facility no later than August 2024, resulting in a non-cash, pre-tax charge of approximately $ 4.5 million and (iii) a strategic decision to exit production of certain low-margin oximes products resulting in a non-cash, pre-tax charge of approximately $ 2.4 million.

Each of these transactions, totaling a net pre-tax gain of approximately $ 4.5 million, was recorded during the third quarter of 2023 and included as a component of Other non-operating (income) expense, net on the Condensed Consolidated Statements of Operations and a non-cash transaction on the Condensed Consolidated Statements of Cash Flows.

The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows:

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

Date of Authorization Authorized Amount

Authorized Amount Remaining as of June 30, 2023

Authorized Amount Remaining as of September 30, 2023

May 4, 2018 $ 75.0 $ —

2 unchanged sentences

Totals $ 225.0 $ 76.6

Repurchases may be made from time to time on the open market in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including through the use of trading plans intended to qualify under Rule

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

10b5-1 of the Exchange Act.

The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors.

1 unchanged sentence

The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital.

As of June 30, 2023, the Company has repurchased a total of 5,274,989 shares of common stock, including 849,265 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $ 164.4 million at a weighted average market price of $ 31.17 per share.

As of June 30, 2023, $ 85.6 million remained available for share repurchases under the current authorization.

During the period July 1, 2023 through July 28, 2023, the Company repurchased an additional 94,715 shares at a weighted average market price of $ 36.45 per share primarily under the current authorized repurchase program.

As of September 30, 2023, the Company has repurchased a total of 5,541,948 shares of common stock, including 854,340 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $ 173.6 million at a weighted average market price of $ 31.33 per share.

As of September 30, 2023, $ 76.6 million remained available for share repurchases under the current authorization.

During the period October 1, 2023 through October 27, 2023, the Company repurchased an additional 101,387 shares at a weighted average market price of $ 29.07 per share primarily under the current authorized repurchase program.

Recent Accounting Pronouncements

12 unchanged sentences

We serve approximately 400 customers annually in approximately 40 countries across a wide variety of industries.

For the three months ended June 30, 2023 and 2022, the Company's ten largest customers accounted for approximately 41 % and 40 % of total sales, respectively.

For each of the six months ended June 30, 2023 and 2022, the Company's ten largest customers accounted for approximately 38 % of total sales during both periods.

For the three months ended September 30, 2023 and 2022, the Company's ten largest customers accounted for approximately 41 % and 43 % of total sales, respectively.

For the nine months ended September 30, 2023 and 2022, the Company's ten largest customers accounted for approximately 39 % and 39 % of total sales, respectively.

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

We have historically experienced low customer turnover and have long-standing customer relationships, which span decades.

Our largest customer is Shaw Industries Group, Inc.

(“Shaw”), a significant consumer of caprolactam and Nylon 6 resin, to whom we sell under a long-term agreement.

For each of the three and six months ended June 30, 2023 and 2022, the Company's sales to Shaw were 10 % of our total sales.

The Company's revenue by product line, and related approximate percentage of total sales, for the three and six months ended June 30, 2023 and 2022 were as follows:

ADVANSIX INC.

1 unchanged sentence

(Dollars in thousands, except share and per share amounts and as otherwise noted)

customer is Shaw Industries Group, Inc.

(“Shaw”), a significant consumer of caprolactam and Nylon 6 resin, to whom we sell under a long-term agreement.

For the three months ended September 30, 2023 and 2022, the Company's sales to Shaw were 12 % and 16 % of our total sales, respectively.

For the nine months ended September 30, 2023 and 2022, the Company's sales to Shaw were 11 % and 12 % of our total sales, respectively.

The Company's revenue by product line, and related approximate percentage of total sales, for the three and nine months ended September 30, 2023 and 2022 were as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

4 unchanged sentences

Total $ 322,907 100 % $ 478,769 100 % $ 1,151,391 100 % $ 1,541,578 100 %

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and six months ended June 30, 2023 and 2022 were as follows:

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and nine months ended September 30, 2023 and 2022 were as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

4 unchanged sentences

The Company defers revenues when cash payments are received in advance of our performance.

Below is a roll-forward of Deferred income and customer advances for the six months ended June 30, 2023:

Below is a roll-forward of Deferred income and customer advances for the nine months ended September 30, 2023:

Opening balance January 1, 2023 $ 34,430

1 unchanged sentence

Less amounts recognized in revenues ( 39,322 )

Ending balance June 30, 2023 $ 2,333

The Company expects to recognize as revenue the June 30, 2023 ending balance of Deferred income and customer advances within one year or less.

Ending balance September 30, 2023 $ 2,415

The Company expects to recognize as revenue the September 30, 2023 ending balance of Deferred income and customer advances within one year or less.

Earnings Per Share

The computation of basic and diluted earnings per share ("EPS") is based on Net income divided by the basic weighted average number of common shares outstanding and diluted weighted average number of common shares outstanding, respectively.

The details of the basic and diluted EPS calculations for the three and six months ended June 30, 2023 and 2022 were as follows:

The computation of basic and diluted earnings per share ("EPS") is based on Net income (loss) divided by the basic weighted average number of common shares outstanding and diluted weighted average number of common shares outstanding, respectively.

The details of the basic and diluted EPS calculations for the three and nine months ended September 30, 2023 and 2022 were as follows:

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Net income $ 32,728 $ 65,157 $ 67,682 $ 128,230

Net income (loss) $ ( 7,977 ) $ 10,032 $ 59,705 $ 138,262

Weighted average common shares outstanding 27,209,521 27,944,494 27,433,851 28,103,255

3 unchanged sentences

EPS – Diluted $ ( 0.29 ) $ 0.35 $ 2.12 $ 4.74

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

Diluted EPS is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the period.

The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period.

The anti-dilutive common stock equivalents outstanding at the three and six months ended June 30, 2023 and 2022 were as follows:

The anti-dilutive common stock equivalents outstanding at the three and nine months ended September 30, 2023 and 2022 were as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Options and stock equivalents 498,652 227,144 447,950 156,418

Dividend activity for the three and six months ended June 30, 2023 and 2022 was as follows:

Dividend activity for the three and nine months ended September 30, 2023 and 2022 was as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

2 unchanged sentences

Accounts and Other Receivables – Net

September 30,

2023 December 31,

4 unchanged sentences

Total accounts and other receivables – net $ 144,673 $ 175,429

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

September 30,

2023 December 31,

6 unchanged sentences

Total inventories $ 229,199 $ 215,502

Substantially all of the Company’s inventories at June 30, 2023 and December 31, 2022 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method.

However, approximately 7 % was valued at average cost using the first-in, first-out (“FIFO”) method at June 30, 2023.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 67.2 million and $ 58.2 million at June 30, 2023 and December 31, 2022, respectively.

Substantially all of the Company’s inventories at September 30, 2023 and December 31, 2022 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method.

However, approximately 9 % was valued at average cost using the first-in, first-out (“FIFO”) method at September 30, 2023.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 61.4 million and $ 58.2 million at September 30, 2023 and December 31, 2022, respectively.

We determine if an arrangement is a lease at inception.

1 unchanged sentence

Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

The components of lease expense were as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

6 unchanged sentences

Total lease cost $ 13,869 $ 13,496 $ 39,726 $ 37,152

As of June 30, 2023, we have additional operating leases that have not yet commenced for approximately $ 1.0 million.

These leases will commence during the second half of 2023 with lease terms of up to 7 years.

As of September 30, 2023, we have additional operating leases that have not yet commenced for approximately $ 1.4 million.

These leases will commence during December 2023 and January 2024 with lease terms of up to 7 years.

Goodwill and Intangible Assets

1 unchanged sentence

Customer relationships and trade-names are amortized on a straight-line basis over their expected useful lives of 15 to 20 years and 5 years, respectively.

There was no change in the carrying amount of goodwill for the six months ended June 30, 2023.

There was no change in the carrying amount of goodwill for the nine months ended September 30, 2023.

Finite-Lived Intangible Assets

Intangible assets subject to amortization were as follows:

June 30, 2023 December 31, 2022

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

September 30, 2023 December 31, 2022

Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value

3 unchanged sentences

Total $ 56,371 $ ( 9,416 ) $ 46,955 $ 56,371 $ ( 7,129 ) $ 49,242

For each of the three months ended June 30, 2023 and June 30, 2022, the Company recorded amortization expense on intangible assets of $ 0.8 million.

For the six months ended June 30, 2023 and June 30, 2022, the Company recorded amortization expense on intangible assets of $ 1.5 million and $ 1.2 million, respectively.

For each of the three months ended September 30, 2023 and September 30, 2022, the Company recorded amortization expense on intangible assets of $ 0.8 million.

For the nine months ended September 30, 2023 and September 30, 2022, the Company recorded amortization expense on intangible assets of $ 2.3 million and $ 2.0 million, respectively.

Commitments and Contingencies

3 unchanged sentences

Given the uncertainty inherent in such lawsuits, investigations and disputes, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters.

Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of these matters, either individually or in the

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

aggregate, to have a material adverse effect on the Company’s consolidated financial position or results of operations.

Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on the Company’s consolidated financial position or results of operations.

Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations, balance sheet and/or operating cash flows in the periods recognized or paid.

3 unchanged sentences

Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations.

The provision for income taxes was $ 10.6 million and $ 20.0 million for the three months ended June 30, 2023 and 2022, respectively, resulting in an effective tax rate of 24.4 % and 23.5 %, respectively.

The provision for income taxes was $ 19.8 million and $ 39.1 million for the six months ended June 30, 2023 and 2022, respectively, resulting in an effective tax rate of 22.7 % and 23.4 %, respectively.

The (benefit) provision for income taxes was ($ 2.1 million) and $ 2.7 million for the three months ended September 30, 2023 and 2022, respectively, resulting in an effective tax rate of 20.7 % and 21.4 %, respectively.

The provision for income taxes was $ 17.8 million and $ 41.9 million for the nine months ended September 30, 2023 and 2022, respectively, resulting in an effective tax rate of 22.9 % and 23.2 %, respectively.

The Company’s provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income before taxes for the period in addition to recording any tax effects of discrete items for the quarter.

The Company’s effective tax rate for the three and six months ended June 30, 2023 and 2022 differed from the U.S.

federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations which generally increase the tax rate, offset by tax credits and the foreign-derived intangible income deduction which generally decrease the tax rate.

Additionally, discrete tax adjustments recorded in the first half of 2023 relating to the vesting of equity compensation and changes in state tax legislation resulted in a net 0.6 % increase to the quarterly effective tax rate and a net 0.9 % decrease to the year-to-date effective tax rate.

The Company’s effective tax rate for the three and nine months ended September 30, 2023 and 2022 differed from the U.S.

federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations, offset by tax credits and the foreign-derived intangible income deduction.

Additionally for 2023, discrete tax adjustments relating to the vesting of equity compensation, changes in state tax legislation and return to provision adjustments related to the filing of the Company's 2022 U.S.

federal income tax return resulted in a net 4.4 % increase to the quarterly effective tax rate and a net 1.6 % decrease to the year-to-date effective tax rate.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

On August 16, 2022, the Inflation Reduction Act of 2022 (the "IRA") was signed into law.

14 unchanged sentences

The Company’s Condensed Consolidated Balance Sheets also include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

The Company also has assets that are required to be recorded at fair value on a non-recurring basis.

13 unchanged sentences

The terms and conditions of credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer.

The Company did not have any customers with significant concentrations of trade accounts receivable – net at June 30, 2023 or December 31, 2022.

The Company did not have any customers with significant concentrations of trade accounts receivable – net at September 30, 2023 or December 31, 2022.

Allowance for doubtful accounts is calculated based upon the Company's estimate of expected credit losses over the life of exposure based upon both historical information as well as future expected losses.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in the cost of production.

3 unchanged sentences

Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings, in the same category as the items being hedged, when the hedged transaction is recognized.

At June 30, 2023 and 2022, we had no financial contracts related to forward commodity agreements.

At September 30, 2023 and 2022, we had no financial contracts related to forward commodity agreements.

Interest Rate Risk Management – The Company had entered into one interest rate swap agreement for a total notional amount of $ 50 million to exchange floating for fixed rate interest payments for our LIBOR-based borrowings.

3 unchanged sentences

The interest rate swap involved the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the interest rate swap without an exchange of the underlying principal amount.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

Asset (Liability) Derivatives

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value

3 unchanged sentences

The following table summarizes adjustments related to cash flow hedge included in Cash-flow hedges, in the Condensed Consolidated Statements of Comprehensive Income:

September 30,

Gain on derivative instruments included in Accumulated other comprehensive loss at December 31, 2022 $ 197

Fair value adjustment ( 197 )

Gain (Loss) on derivative instruments included in Accumulated other comprehensive loss at June 30, 2023 $ —

At June 30, 2023, the Company expects no reclassifications of net gains or losses on derivative instruments from Accumulated other comprehensive income ("AOCI") to earnings during the next 12 months as the interest rate swap agreement matured on February 21, 2023.

Gain (Loss) on derivative instruments included in Accumulated other comprehensive loss at September 30, 2023 $ —

At September 30, 2023, the Company expects no reclassifications of net gains or losses on derivative instruments from Accumulated other comprehensive income ("AOCI") to earnings during the next 12 months as the interest rate swap agreement matured on February 21, 2023.

The following table summarizes the reclassification of net (gains) losses on derivative instruments from AOCI into earnings:

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

1 unchanged sentence

Total Derivatives $ — $ ( 256 ) $ — $ ( 375 )

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

In February 2022, the Company acquired the stock of U.S.

7 unchanged sentences

All related agreements are terminable by either party upon at least 30 days’ notice.

The total amount due to the financial intermediaries to settle supplier invoices under the supplier finance programs was approximately $ 14 million and approximately $ 17 million as of June 30, 2023 and December 31, 2022, respectively.

The total amount due to the financial intermediaries to settle supplier invoices under the supplier finance programs was approximately $ 17 million as of September 30, 2023 and December 31, 2022.

These amounts outstanding are included in Accounts payable .

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

Subsequent Events

As announced on August 4, 2023, the Board declared a quarterly cash dividend of $ 0.160 per share on the Company's common stock, payable on August 29, 2023 to stockholders of record as of the close of business on August 15, 2023.

As announced on November 3, 2023, the Board declared a quarterly cash dividend of $ 0.160 per share on the Company's common stock, payable on November 28, 2023 to stockholders of record as of the close of business on November 14, 2023.

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 1. Financial Statements