8 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, excluding our trading derivative contracts (which are presented separately below), as of June 30, 2022 ($ 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 September 30, 2022 ($ in millions):
Total Outstanding Notional Contract Volume by Year of Maturity
9 unchanged sentences
22.0 7,343,000 4,953,000 2,390,000 —
+Added: Natural gas swaps - long (3)
+Added: (2.7) 2,030,000 — 2,030,000 —
+Added: Natural gas swaps - short (3)
+Added: 0.5 5,755,000 5,475,000 280,000 —
RIN commitment contracts - long (2)
0.3 128,800,000 128,800,000 — —
+Added: RIN commitment contracts - short (2)
+Added: 1.6 22,000,000 22,000,000 — —
Total $ 21.2 271,158,000 216,746,000 54,412,000 —
−Removed: (1) Volume in barrels
−Removed: (2) Volume in RINs
+Added: (1) Volume in barrels (2) Volume in RINs (3) Volume in MMBTU .
Interest Risk Management Activities
−Removed: We have market exposure to changes in interest rates relating to our outstanding floating rate borrowings, which totaled approximately $2,143.4 million as of June 30, 2022.
−Removed: The annualized impact of a hypothetical one percent change in interest rates on our floating rate debt as of June 30, 2022 would be to change interest expense by approximately $21.4 million.
+Added: We have market exposure to changes in interest rates relating to our outstanding floating rate borrowings, which totaled approximately $2,107.1 million as of September 30, 2022.
+Added: The annualized impact of a hypothetical one percent change in interest rates on our floating rate debt as of September 30, 2022 would be to change interest expense by approximately $21.1 million.
Inflationary factors, such as increases in the costs of our inputs, operating expenses, and interest rates may adversely affect our operating results.
−Removed: 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: During 2022, our results of operations were negatively affected by higher natural gas costs, higher labor costs and supply chain disruptions, in part, by the COVID-19 Pandemic, the uncertain economic environment, and macroeconomic and geopolitical events and trends.
+Added: We expect these cost pressures and supply chain challenges to continue into fiscal year 2023.
+Added: In addition, current or future governmental policies may increase the risk of inflation, which could further increase costs and 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 do not increase in line with increases in costs.
+Added: Management's Discussion and Analysis
LIBOR Transition
2 unchanged sentences
Certain of our agreements use LIBOR as a “benchmark” or “reference rate” for various terms.
−Removed: Some agreements contain an existing LIBOR alternative.
+Added: Some agreements contain an existing LIBOR alternative such as the Secured Overnight Financing Rate.
Where there is not an alternative, we expect to replace the LIBOR benchmark with an alternative reference rate.
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
2 unchanged sentences
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: The following table sets forth information relating to trading commodity derivative contracts as of June 30, 2022:
+Added: The following table sets forth information relating to trading commodity derivative contracts as of September 30, 2022:
Total Outstanding Notional Contract Volume by Year of Maturity
7 unchanged sentences
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.