QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our results of operations and operating cash flows are affected by changes in market prices of natural gas, changes in market interest rates and changes in market currency exchange rates.
+Added: Our results of operations and operating cash flows are affected by changes in market prices of ammonia and natural gas and changes in market interest rates.
Forward Sales Commitments Risk
Periodically, we enter into forward firm sales commitments for products to be delivered in future periods.
−Removed: As a result, we could be exposed to embedded losses should our product costs exceed the firm sales prices.
+Added: As a result, we could be exposed to embedded losses should our product costs exceed the firm sales prices at the end of a reporting period.
At December 31, 2020, we had no embedded losses associated with sales commitments with firm sales prices.
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A substantial portion of our products and raw materials are commodities whose prices fluctuate as market supply and demand fundamentals change.
−Removed: We are exposed to commodity price risk as we generally do not use derivative financial instruments to manage risks related to changes in prices of commodities.
−Removed: We periodically enter into contracts to purchase natural gas for anticipated production needs.
−Removed: Generally, these contracts are considered normal purchases and sales because they provide for the purchase of natural gas that will be delivered in quantities expected to be used over a reasonable period of time in the normal course of business, these contracts are exempt from the accounting and reporting requirements relating to derivatives.
−Removed: At December 31 , 2019, we did not have any natural gas derivatives not meeting the definition of a normal purchase and sale.
+Added: S ince we are exposed to commodity price risk, we periodically enter into contracts to purchase natural gas for anticipated production needs to manage risk related to changes in prices of natural gas commodities.
+Added: Generally, these contracts are considered normal purchases because they provide for the purchase of natural gas that will be delivered in quantities expected to be used over a reasonable period of time in the normal course of business, these contracts are exempt from the accounting and reporting requirements relating to derivatives.
+Added: As discussed in Note 9, during 2020, we entered into certain natural gas contracts, which are accounted for on a mark-to-market basis.
+Added: At December 31, 2020, these natural gas contracts included 7.3 million MMBtus of natural gas and therefore a $0.10 change in natural gas price would impact pre-tax operating results by approximately $0.7 million.
Interest Rate Risk
Generally, we are exposed to variable interest rate risk with respect to our revolving credit facility.
−Removed: As of December 31, 2019, we had no outstanding borrowings on this credit facility .
−Removed: We are also exposed to interest rate risk on variable rate borrowings for certain commercial loans in the amount of approximately $17.9 million.
+Added: As of December 31, 2020, we had no outstanding borrowings on this credit facility and no other variable rate borrowings.
We currently do not hedge our interest rate risk associated with these variable interest loans .
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Expected maturities of long-term debt (1):
−Removed: Variable interest rate debt
−Removed: Weighted-average interest rate
Fixed interest rate debt
Weighted-average interest rate
−Removed: The variable and fixed interest rate debt balances and weighted-average interest rate are based on the aggregate amount of debt outstanding as of December 31, 2019.
−Removed: At December 31, 2019 and 2018, we did not have any financial instruments with fair values significantly different from their carrying amounts (which excludes issua nce costs, if applicable).
+Added: The debt balances and weighted-average interest rate are based on the aggregate amount of debt outstanding as of December 31, 2020.
+Added: At December 31, 2020 and 2019, we did not have any financial instruments with fair values materially different from their carrying amounts (which excludes issuance costs, if applicable).
The fair value of financial instruments is not indicative of the overall fair value of our assets and liabilities since financial instruments do not include all assets, including intangibles, and all liabilities.
−Removed: FINANCIAL STATEMEN TS AND SUPPLEM ENTARY DATA
−Removed: We have included the financial statements and supplementary financial information required by this item immediately following Part IV of this report and hereby incorporate by reference the relevant portions of those statements and information into this Item 8.
−Removed: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
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.