QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: These disclosures should be read in conjunction with the condensed consolidated financial statements, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and other information presented herein, as well as in the "Quantitative and Qualitative Disclosures About Market Risk" section contained in our Annual Report on Form 10-K, filed on March 1, 2021.
+Added: These disclosures should be read in conjunction with the condensed consolidated financial statements, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and other information presented herein, as well as in the "Quantitative and Qualitative Disclosures About Market Risk" section contained in our Annual Report on Form 10-K, filed on February 25, 2022.
Price Risk Management Activities
5 unchanged sentences
Gains or losses on commodity derivative contracts accounted for as cash flow hedges are recognized in other comprehensive income on the condensed consolidated balance sheets and, ultimately, when the forecasted transactions are completed, in net revenues or cost of materials and other in the condensed consolidated statements of income.
−Removed: The following table sets forth information relating to our open commodity derivative contracts as of September 30, 2021 ($ in millions):
+Added: 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 March 31, 2022 ($ in millions):
Total Outstanding Notional Contract Volume by Year of Maturity
17 unchanged sentences
Interest Risk Management Activities
−Removed: We have market exposure to changes in interest rates relating to our outstanding floating rate borrowings, which totaled approximately $1,553.5 million as of September 30, 2021.
−Removed: The annualized impact of a hypothetical one percent change in interest rates on our floating rate debt as of September 30, 2021 would be to change interest expense by approximately $15.5 million.
+Added: We have market exposure to changes in interest rates relating to our outstanding floating rate borrowings, which totaled approximately $1,540.0 million as of March 31, 2022.
+Added: The annualized impact of a hypothetical one percent change in interest rates on our floating rate debt as of March 31, 2022 would be to change interest expense by approximately $15.4 million.
+Added: Inflationary factors, such as increases in the costs of our inputs, operating expenses, and interest rates may adversely affect our operating results.
+Added: Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales if the prices at which we are able to sell our products and services does not increase in line with increases in costs.
+Added: LIBOR Transition
+Added: LIBOR is a commonly used indicative measure of the average interest rate at which major global banks could borrow from one another.
+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.
+Added: Certain of our agreements use LIBOR as a “benchmark” or “reference rate” for various terms.
+Added: Some agreements contain an existing LIBOR alternative.
+Added: Where there is not an alternative, we expect to replace the LIBOR benchmark with an alternative reference rate.
+Added: 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.
Management's Discussion and Analysis
2 unchanged sentences
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 September 30, 2021, 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 trading commodity derivative contracts held for trading purposes as of September 30, 2021:
−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) $ 64.30
−Removed: Contractual volume at fair value (in millions) $ 54.4
−Removed: Over the counter forward purchase contracts (crude)
−Removed: Notional contract volume (1)
−Removed: Weighted-average market price (per barrel) $ 64.17
−Removed: Contractual volume at fair value (in millions) $ 45.4
+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 March 31, 2022:
+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 forward contracts- long (1)
+Added: 135.7 1,516,141 1,516,141 — — — —
+Added: Crude forward contracts- short (1)
+Added: (142.4) 1,579,048 1,579,048 — — — —
+Added: Total $ (6.7) 3,095,189 3,095,189 — — — —
(1) Volume in barrels
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.