11 unchanged sentences
Unrealized gains and losses on these contracts are recognized in cost of goods sold in our Consolidated Statements of Operations.
−Removed: When a futures position is established, initial margin must be deposited with the applicable exchange or broker.
+Added: When a futures position is established, the initial margin must be deposited with the applicable exchange or broker.
The amount of margin required varies by commodity and is set by the applicable exchange at its sole discretion.
7 unchanged sentences
These limits are defined for each commodity and business unit, and business units may include both trader and management limits as appropriate.
−Removed: The limits policy is overseen at a high level by our corporate compliance team, with day-to-day monitoring procedures being implemented within each individual business unit to ensure any limits overage is explained
−Removed: and exposures reduced, or a temporary limit increase is established if needed.
−Removed: The position limits are reviewed at least annually with our senior leadership and the Board of Directors.
+Added: The limits policy is overseen at a high level by our corporate middle office and compliance team, with day-to-day monitoring procedures being implemented within each individual business unit to ensure any limits overages are explained and exposures reduced, or a temporary limit increase is established if needed.
+Added: The position limits are
+Added: reviewed at least annually with our senior leadership and the Board of Directors.
We monitor current market conditions and may expand or reduce our net position limits or procedures in response to changes in those conditions.
1 unchanged sentence
We evaluate counterparty exposure by reviewing contracts and adjusting the values to reflect potential nonperformance.
−Removed: Risk of nonperformance by counterparties includes the inability to perform because of a counterparty's financial condition and the risk that the counterparty will refuse to perform on a contract during periods of price fluctuations where contract prices are significantly different from the current market prices.
+Added: Risk of nonperformance by counterparties includes the inability to perform because of a counterparty's financial condition and the risk that the counterparty will refuse to perform on a contract during periods of price fluctuations where contract prices are significantly different from current market prices.
We manage these risks by entering into fixed-price purchase and sales contracts with preapproved producers and by establishing appropriate limits for individual suppliers.
5 unchanged sentences
Based on our net fair market value calculation as of August 31, 2022, a 10% adverse change in market prices would not materially affect our results of operations.
−Removed: While we use commodity futures and forward contracts as economic hedges of price risk and our operations have effective economic hedging requirements as a general practice, we cannot ensure that these risk management activities will offset all of the financial impact resulting from an adverse change in market prices.
−Removed: Factors that could impact the effectiveness of our hedging activities include the accuracy of our forecasts, the volatility of the commodity markets and the availability of hedging instruments.
−Removed: The utilization of derivatives and hedging activities is described more fully in Note 15, Derivative Financial Instruments and Hedging Activities , and Note 16, Fair Value Measurements , of the notes to our consolidated financial statements included in this Annual Report on Form 10-K.
+Added: While we use commodity futures and forward contracts as economic hedges of price risk and our operations have effective economic hedging requirements as a general practice, we cannot ensure that these risk management activities will offset all financial impact resulting from an adverse change in market prices.
+Added: Factors that could impact the effectiveness of our hedging activities include the accuracy of our forecasts, volatility of the commodity markets and availability of hedging instruments.
+Added: Utilization of derivatives and hedging activities is described more fully in Note 15, Derivative Financial Instruments and Hedging Activities , and Note 16, Fair Value Measurements , of the notes to our consolidated financial statements included in this Annual Report on Form 10-K.
Interest Rate Risk
12 unchanged sentences
Average interest rate 4.5 % 6.7 % 4.2 % 4.8 % 4.7 % 4.3 % 4.4 % —
+Added: Variable rate long-term debt $ — $ — $ — $ 366,000 $ — $ — $ 366,000 $ 341,078
+Added: Average interest rate (a)
+Added: — — — 4.0 % — — 4.0 % —
+Added: (a) Borrowings are variable under the agreement and bear interest at a base rate plus an applicable margin.
Foreign Currency Risk
4 unchanged sentences
From time to time, we enter into foreign currency hedge contracts to minimize the impact of currency fluctuations on our transactional exposures.
−Removed: The notional amount of our foreign exchange derivative contracts was $1.2 billion as of both August 31, 2021 and 2020.
+Added: The notional amount of our foreign exchange derivative contracts was $1.9 billion and $1.2 billion as of August 31, 2022 and 2021, respectively.
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.