1 unchanged sentence
We use various financial instruments to manage and reduce our exposure to various market risks, including changes in commodity prices and interest rates.
−Removed: We conduct all of our business in U.S.
+Added: We conduct the majority of our business in U.S.
dollars and are not currently exposed to foreign currency risk.
1 unchanged sentence
We are exposed to interest rate risk through our loans which bear interest at variable rates.
−Removed: Interest rates on our variable-rate debt are based on the market rate for the lender’s prime rate or LIBOR.
+Added: Interest rates on our variable-rate debt are based on the market rate for the lender’s prime rate, SOFR or LIBOR.
+Added: At March 31, 2022, we had $903.8 million in debt, $369.2 million of which had variable interest rates.
A 10% increase in interest rates would affect our interest cost by approximately $1.6 million per year.
−Removed: At September 30, 2021, we had $711.4 million in debt, $222.0 million of which had variable interest rates.
For additional information related to our debt, see Note 8 – Debt included as part of the notes to consolidated financial statements and Note 12 – Debt included as part of the notes to consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2021.
4 unchanged sentences
Distillers grains prices are impacted by livestock numbers on feed, prices for feed alternatives and supply, which is associated with ethanol plant production.
−Removed: Natural gas prices are influenced by severe weather in the summer and winter and hurricanes in the spring, summer and fall.
+Added: Natural gas prices are influenced by severe weather in the summer
+Added: and winter and hurricanes in the spring, summer and fall.
Other factors include North American energy exploration and production, and the amount of natural gas in underground storage during injection and withdrawal seasons.
4 unchanged sentences
Our results are impacted by a mismatch of gains or losses associated with the derivative instrument during a reporting period when the physical commodity purchases or sale has not yet occurred.
−Removed: During the three and nine months ended September 30, 2021, revenues included net gains of $0.9 million and net losses of $89.8 million, respectively, and cost of goods sold included net losses of $17.4 million and net gains of $15.3 million, respectively, associated with derivative financial instruments.
+Added: During the three months ended March 31, 2022, revenues included net losses of $6.0 million, and cost of goods sold included net losses of $62.4 million associated with derivative financial instruments.
Ethanol Production Segment
1 unchanged sentence
To reduce commodity price risk caused by market fluctuations, we enter into exchange-traded futures and options contracts that serve as economic hedges.
−Removed: Our exposure to market risk, which includes the impact of our risk management activities resulting from our fixed-price purchase and sale contracts and derivatives, is based on the estimated net income effect resulting from a hypothetical 10% change in price for the next 12 months starting on September 30, 2021, which is as follows (in thousands):
+Added: Our exposure to market risk, which includes the impact of our risk management activities resulting from our fixed-price purchase and sale contracts and derivatives, is based on the estimated net income effect resulting from a hypothetical 10% change in price for the next 12 months starting on March 31, 2022, which is as follows (in thousands):
Estimated Total Volume
16 unchanged sentences
Our accounting policy for futures and options, as well as the underlying inventory held for sale and purchase and sale contracts, is to reflect their current market values and include gains and losses in the consolidated statement of operations.
−Removed: Our daily net commodity position consists of inventories related to purchase and sale contracts and exchange-traded contracts .
−Removed: The fair value of our position was approximately $0.7 million for grain at September 30, 2021.
−Removed: Our market risk at that date, based on the estimated net income effect resulting from a hypothetical 10% change in price, was approximately $55 thousand.
Controls and Pr ocedures.
Evaluation of Disclosure Controls and Procedures
−Removed: We maintain disclosure controls and procedures designed to ensure the information that must be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required financial disclosure.
+Added: We maintain disclosure controls and procedures designed to ensure the information that must be disclosed in the reports
+Added: we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required financial disclosure.
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
−Removed: Under the supervision and participation of our chief executive officer and chief financial officer, management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2021, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act and concluded that our disclosure controls and procedures were effective.
+Added: Under the supervision and participation of our chief executive officer and chief financial officer, management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2022 as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act and concluded that our disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
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.