14 unchanged sentences
From time to time, we also may enter into forward purchase or sale derivative contracts for trading purposes (primarily in our Canadian business) and, as a result, may have trading investment commodities on hand related to the purchased inventory.
−Removed: Such derivative contracts and related investment commodities are recorded at fair value and subject to pricing risk each period with changes in fair value reflected in other operating income (expense) in the profit and loss section of our consolidated financial statements.
−Removed: For the years ended December 31, 2019 and 2018 , all of our forward contracts that were accounted for as derivative instruments consisted of contracts related to our Canadian trading activities.
−Removed: There were no forward contract transactions that were accounted for as derivatives for the years ended December 31, 2017 .
+Added: Such derivative contracts and related investment commodities are recorded at fair value and subject to pricing risk each period with changes in fair value reflected in other operating income, net in the profit and loss section of our consolidated financial statements.
+Added: For the years ended December 31, 2020, 2019 and 2018, all of our forward purchase and sales contracts that were accounted for as derivative instruments consisted of contracts related to our Canadian trading activities.
Price Risk Management Activities
1 unchanged sentence
commodity derivative contracts which we use to manage our price exposure to our inventory positions, future purchases of crude oil and ethanol, future sales of refined products or to fix margins on future production;
−Removed: and future commitments to purchase or sell RINs at fixed prices and quantities, which are used to manage the costs associated with our RINs obligations and meet the definition of derivative instruments under ASC 815.
+Added: and future commitments to purchase or sell RINs at fixed prices and quantities, which are used to manage the costs associated with our RINs obligations and meet the definition of derivative instruments under Accounting Standards Codification 815, Derivatives and Hedging ("ASC 815").
In accordance with ASC 815, all of these commodity contracts and future purchase commitments are recorded at fair value, and any change in fair value between periods has historically been recorded in the profit and loss section of our consolidated financial statements.
3 unchanged sentences
The following table sets forth information relating to our open commodity derivative contracts, excluding our trading derivative contracts (which are presented separately below), as of December 31, 2020 ($ in millions).
−Removed: Total Outstanding
−Removed: Notional Contract Volume by Year of Maturity
−Removed: Contract Description
−Removed: Notional Contract Volume
+Added: Total Outstanding Notional Contract Volume by Year of Maturity
+Added: Contract Description Fair Value Notional Contract Volume 2021 2022 2023 2024 2025
Contracts not designated as hedging instruments:
Crude oil price swaps - long (1)
+Added: $ 41.8 21,236,000 21,086,000 150,000 — — —
Crude oil price swaps - short (1)
−Removed: Inventory, refined product and crack spread swaps - long (1)
−Removed: Inventory, refined product and crack spread swaps - short (1)
−Removed: Natural gas swaps - long (2)
−Removed: Natural gas swaps - short (2)
−Removed: RIN commitment contracts - long (3)
−Removed: RIN commitment contracts - short (3)
−Removed: Contracts designated as cash flow hedging instruments:
+Added: (36.2) 18,174,000 18,174,000 — — — —
Inventory, refined product and crack spread swaps - long (1)
+Added: 57.8 59,217,000 29,617,000 22,200,000 7,400,000 — —
Inventory, refined product and crack spread swaps - short (1)
+Added: (72.4) 58,996,000 29,396,000 22,200,000 7,400,000 — —
+Added: Natural gas forward contracts - long (3)
+Added: 26.4 11,280,000 11,280,000 — — — —
+Added: Natural gas forward contracts - short (3)
+Added: (7.2) 10,850,000 10,850,000 — — — —
+Added: RINs commitment contracts - long (2)
+Added: 33.6 182,650,000 — — — — —
+Added: RINs commitment contracts - short (2)
+Added: (197.2) 563,400,000 — — — — —
+Added: Total $ (153.4) 925,803,000 120,403,000 44,550,000 14,800,000 — —
(1) Volume in barrels.
−Removed: (2) Volume in MMBTU.
(2) Volume in RINs.
+Added: (3) Volume in MMBTU
Interest Rate Risk
3 unchanged sentences
LIBOR is a commonly used indicative measure of the average interest rate at which major global banks could borrow from one another.
−Removed: The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has publicly announced that it intends to discontinue the reporting of LIBOR rates after 2021.
+Added: The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has publicly announced that it intends to discontinue the reporting of certain LIBOR rates after 2021, with a complete cessation for all USD LIBOR rates after June 2023.
Certain of our agreements use LIBOR as a “benchmark” or “reference rate” for various terms.
2 unchanged sentences
While we do not expect the transition to an alternative rate to have a significant impact on our business or operations, it is possible that the move away from LIBOR could materially impact our borrowing costs on our variable rate indebtedness.
−Removed: Management's Discussion and Analysis
Commodity Derivatives Trading Activities
−Removed: In the first half of 2018, we entered into active trading positions in a variety of commodity derivatives, which include forward physical contracts, swap contracts, and futures contracts.
−Removed: These contracts are classified as held for trading and are recognized at fair value with changes in fair value recognized in the income statement.
−Removed: Trading activities are undertaken by using a range of contract types in combination to create incremental gains by capitalizing on crude oil supply and pricing seasonality.
−Removed: These contracts had remaining durations of less than one year as of December 31, 2019 .
+Added: We enter into active trading positions in a variety of commodity derivatives, which include forward physical contracts, swap contracts, and futures contracts.
+Added: These trading activities are undertaken by using a range of contract types in combination to create incremental gains by capitalizing on crude oil supply and pricing seasonality.
+Added: These contracts all had remaining durations of less than one year as of December 31, 2020, and are classified as held for trading and are recognized at fair value with changes in fair value recognized in the income statement.
The following table sets forth information relating to commodity derivative contracts held for trading purposes as of December 31, 2020.
−Removed: Contract Description
−Removed: Less than 1 year
−Removed: Over the counter forward sales contracts
+Added: Contract Description Less than 1 year
+Added: Over the counter forward sales contracts (crude)
Notional contract volume (1)
1 unchanged sentence
Contractual volume at fair value (in millions) $ 36.1
−Removed: Over the counter forward purchase contracts
+Added: Over the counter forward purchase contracts (crude)
Notional contract volume (1)
4 unchanged sentences
The information required by Item 8 is incorporated by reference to the section beginning on page F-1.
+Added: Controls and Procedures, and Other Information
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
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.