6 unchanged sentences
Interest rates on our variable-rate debt are based on the market rate for the lender’s prime rate, SOFR or LIBOR.
−Removed: At March 31, 2022, we had $903.8 million in debt, $369.2 million of which had variable interest rates.
+Added: At June 30, 2022, we had $902.6 million in debt, $367.4 million of which had variable interest rates.
A 10% increase in interest rates would affect our interest cost by approximately $2.0 million per year.
5 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
−Removed: and winter and hurricanes in the spring, summer and fall.
+Added: Natural gas prices are influenced by severe weather in the summer 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 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.
+Added: During the three and six months ended June 30, 2022, revenues included net gains of $8.5 million and $2.5 million, respectively, and cost of goods sold included net gains of $0.2 million and net losses of $62.2 million, respectively, 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 March 31, 2022, which is as follows (in thousands):
−Removed: Estimated Total Volume
+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 June 30, 2022, which is as follows (in thousands):
+Added: Commodity Estimated Total Volume
Requirements for the
Next 12 Months (1)
−Removed: Net Income Effect of
+Added: Measure Net Income Effect of
Approximate 10%
Change in Price
−Removed: Distillers grains
+Added: Ethanol 958,000 Gallons $162,656
+Added: Corn 330,000 Bushels $152,692
+Added: Distillers grains 2,500 Tons (2)
+Added: Corn oil 290,000 Pounds $10,094
+Added: Natural gas 27,700 MmBTU $3,029
(1) Estimated volumes assume production at full capacity.
1 unchanged sentence
Agribusiness and Energy Services Segment
−Removed: In the agribusiness and energy services segment, our inventories, physical purchase and sale contracts and derivatives are marked to market.
+Added: In the agribusiness and energy services segment, physical purchase and sale contracts and derivatives are marked to market.
+Added: Our inventories are carried at the lower of cost or net realizable value, except fair-value hedged inventories.
To reduce commodity price risk caused by market fluctuations for purchase and sale commitments of grain and grain held in inventory, we enter into exchange-traded futures and options contracts that serve as economic hedges.
5 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: Controls and Pr ocedures.
−Removed: 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
−Removed: 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.
−Removed: 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.
−Removed: 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 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.
−Removed: Changes in Internal Control over Financial Reporting
−Removed: Management is responsible for establishing and maintaining effective internal control over financial reporting to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our consolidated financial statements for external purposes in accordance with U.S.
−Removed: generally accepted accounting principles.
−Removed: There were no material changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
−Removed: PART II – OTHER INFORMATION
−Removed: Legal Proceedings.
−Removed: We are currently involved in litigation that has arisen during the ordinary course of business.
−Removed: We do not believe this litigation will have a material adverse effect on our financial position, results of operations or cash flows.
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.