6 unchanged sentences
We maintain, at both company-owned and third-party facilities, inventories of crude oil, feedstocks and refined petroleum products, the values of which are subject to wide fluctuations in market prices driven by world economic conditions, regional and global inventory levels and seasonal conditions.
−Removed: At December 31, 2020 and 2019, we held approximately 3.8 million and 3.7 million barrels, respectively, of crude and product inventories associated with the Tyler refinery valued under the LIFO valuation method, with an average cost of $52.50 and $61.56 per barrel, respectively.
−Removed: At December 31, 2020 and 2019, the excess of replacement cost over the carrying value (LIFO) of refinery inventories was $3.4 million and $14.9 million, respectively.
−Removed: At December 31, 2020 and 2019, we held approximately 9.1 million and 9.4 million barrels, respectively, of crude and product inventories associated with the El Dorado, Big Spring and Krotz Springs refineries valued under the FIFO valuation method, with an average cost of $49.31 and $63.25 per barrel, respectively.
−Removed: Due to a lower crude oil and refined product pricing environment, market prices have declined to a level below the average cost of our inventories.
−Removed: At December 31, 2020, we recorded a pre-tax inventory valuation reserve of $31.1 million, $30.3 million of which related to LIFO inventory, which is subject to reversal in subsequent periods, not to exceed LIFO cost, should market prices recover.
−Removed: At December 31, 2019, we recorded a pre-tax inventory valuation reserve of $1.7 million, of which $1.2 million related to LIFO inventory, which is subject to reversal in subsequent periods, not to exceed LIFO cost, when those physical inventory quantities are sold.
+Added: At December 31, 2021 and 2020, we held approximately 5.0 million and 3.8 million barrels, respectively, of crude and product inventories associated with the Tyler refinery valued under the last-in, first-out ("LIFO") valuation method, with an average cost of $65.56 and $52.50 per barrel, respectively.
+Added: At December 31, 2021 and 2020, the excess of replacement cost over the carrying value of refinery inventories was $68.4 million and $3.4 million, respectively.
+Added: At December 31, 2021 and 2020, we held approximately 8.7 million and 9.1 million barrels, respectively, of crude and product inventories associated with the El Dorado, Big Spring and Krotz Springs refineries valued under the first-in, first-out ("FIFO") valuation method, with an average cost of $81.04 and $49.31 per barrel, respectively.
+Added: In periods of declining crude oil and refined product pricing, market prices may decline to a level below the average cost of our inventories.
+Added: At December 31, 2021, we recorded a pre-tax inventory valuation reserve of $8.8 million, none of which related to LIFO inventory.
+Added: At December 31, 2020, we recorded a pre-tax
+Added: Management's Discussion and Analysis
+Added: inventory valuation reserve of $31.1 million, of which $30.3 million related to LIFO inventory, which is subject to reversal in subsequent periods, not to exceed LIFO cost, when those physical inventory quantities are sold.
For the years ended December 31, 2021, 2020 and 2019, we recognized net inventory valuation (losses) gains of $(8.8) million, $(31.1) million and $37.6 million, respectively, which were recorded as a component of cost of materials and other in the consolidated statements of income.
5 unchanged sentences
commodity derivative contracts which we use to manage our price exposure to our inventory positions, future purchases of crude oil and ethanol, future sales of refined products or to fix margins on future production;
−Removed: and future commitments to purchase or sell RINs at fixed prices and quantities, which are used to manage the costs associated with our RINs obligations and meet the definition of derivative instruments under Accounting Standards Codification 815, Derivatives and Hedging ("ASC 815").
+Added: and future commitments to purchase or sell RINs at fixed prices and quantities, which are used to manage the costs associated with our RINs obligations and meet the definition of derivative instruments under Accounting Standards Codification ("ASC") 815, Derivatives and Hedging ("ASC 815").
In accordance with ASC 815, all of these commodity contracts and future purchase commitments are recorded at fair value, and any change in fair value between periods has historically been recorded in the profit and loss section of our consolidated financial statements.
1 unchanged sentence
Gains or losses on commodity derivative contracts accounted for as cash flow hedges are recognized in other comprehensive income on the consolidated balance sheets and, ultimately, when the forecasted transactions are completed in net revenues or cost of materials and other in the consolidated statements of income.
−Removed: Management's Discussion and Analysis
The following table sets forth information relating to our open commodity derivative contracts, excluding our trading derivative contracts (which are presented separately below), as of December 31, 2021 ($ in millions):
10 unchanged sentences
(50.2) 69,393,000 54,593,000 14,800,000 — — —
−Removed: Natural gas forward contracts - long (3)
−Removed: 26.4 11,280,000 11,280,000 — — — —
−Removed: Natural gas forward contracts - short (3)
+Added: Natural gas swaps - short (3)
— 1,320,000 1,320,000 — — — —
4 unchanged sentences
Total $ (3.9) 193,646,000 154,671,000 29,600,000 — — —
−Removed: (1) Volume in barrels.
−Removed: (2) Volume in RINs.
−Removed: (3) Volume in MMBTU
+Added: (1) Volume in barrels (2) Volume in RINs (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 certain LIBOR rates after 2021, with a complete cessation for all USD LIBOR rates after June 2023.
+Added: The United Kingdom’s Financial Conduct Authority, which regulates LIBOR discontinued the reporting of certain LIBOR rates on December 31, 2021, and has publically announced that it intends to discontinue 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.
+Added: Management's Discussion and Analysis
Commodity Derivatives Trading Activities
1 unchanged sentence
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.
−Removed: 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.
−Removed: The following table sets forth information relating to commodity derivative contracts held for trading purposes as of December 31, 2020.
−Removed: Contract Description Less than 1 year
−Removed: Over the counter forward sales contracts (crude)
−Removed: Notional contract volume (1)
−Removed: Weighted-average market price (per barrel) $ 33.07
−Removed: Contractual volume at fair value (in millions) $ 36.1
−Removed: Over the counter forward purchase contracts (crude)
−Removed: Notional contract volume (1)
−Removed: Weighted-average market price (per barrel) $ 33.00
−Removed: Contractual volume at fair value (in millions) $ 31.9
+Added: These contracts are classified as held for trading and are recognized at fair value with changes in fair value recognized in the income statement.
+Added: The following table sets forth information relating to trading commodity derivative contracts as of December 31, 2021 ($ in millions):
+Added: Total Outstanding Notional Contract Volume by Year of Maturity
+Added: Contract Description Fair Value Notional Contract Volume 2022 2023 2024 2025 2026
+Added: Crude oil price swaps - long (1)
+Added: $ 21.9 3,400,000 3,400,000 — — — —
+Added: Crude oil price swaps - short (1)
+Added: (2.2) 3,550,000 3,550,000 — — — —
+Added: Crude forward contracts- long (1)
+Added: 152.6 2,406,412 2,406,412 — — — —
+Added: Crude forward contracts- short (1)
+Added: (157.3) 2,468,481 2,468,481 — — — —
+Added: Total $ 15.0 11,824,893 11,824,893 — — — —
(1) Volume in barrels.
1 unchanged sentence
The information required by Item 8 is incorporated by reference to the section beginning on page F-1.
−Removed: 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.