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, 2023, we had $709.6 million in debt, $271.6 million of which had variable interest rates.
+Added: At June 30, 2023, we had $742.5 million in debt, $304.6 million of which had variable interest rates.
A 10% increase in interest rates would affect our interest cost by approximately $2.8 million per year.
−Removed: For additional information related to our debt, see Note 7 – 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, 2022.
+Added: For additional information related to our debt, see Note 7 – Debt included as part of the notes to the unaudited consolidated financial statements included herein 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, 2022.
Commodity Price Risk
10 unchanged sentences
Our results can be impacted if there is 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, 2023, revenues included net losses of $7.2 million, and cost of goods sold included net gains of $17.2 million associated with derivative financial instruments.
+Added: During the three and six months ended June 30, 2023, revenues included net losses of $0.8 million and $8.0 million, respectively, and cost of goods sold included net losses of $9.3 million and net gains of $7.9 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 results are impacted when there is a mismatch of gains or losses associated with the derivative instrument during a reporting period when the physical commodity purchase or sale has not yet occurred.
−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, 2023, 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 June 30, 2023, which is as follows (in thousands):
Commodity Estimated Total Volume
12 unchanged sentences
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, our physical purchase and sale contracts, derivatives and some of our inventories are marked to market.
Our inventories are carried at the lower of cost or net realizable value, except fair-value hedged inventories.
−Removed: To reduce commodity price risk caused by market fluctuations for purchase and sale commitments of grain and
−Removed: grain held in inventory, we enter into exchange-traded futures and options contracts that serve as economic hedges.
+Added: 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.
The market value of exchange-traded futures and options used for hedging are highly correlated with the underlying market value of grain inventories and related purchase and sale contracts for grain.
−Removed: The less correlated portion of inventory and purchase and sale contract market values, known as basis, is much less volatile than the overall market value of exchange-traded futures and tends to follow historical patterns.
+Added: The less correlated portion of inventory
+Added: and purchase and sale contract market values, known as basis, is much less volatile than the overall market value of exchange-traded futures and tends to follow historical patterns.
We manage this less volatile risk by constantly monitoring our position relative to the price changes in the market.
3 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.