Important risk factors that apply to us are outlined in Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “ 10-K Report ” ).
+Added: In addition to these risk factors, we include the following updates:
Operational Risks
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For example, the ongoing conflict between Russia and Ukraine and the related sanctions have led, and may continue to lead, to disruption and instability in global markets, supply chains and volatile pricing and availability of these key inputs.
−Removed: A significant increase in the price or availability of these key inputs or energy costs could have a material adverse impact on our business, financial condition and results of operations.
+Added: A significant increase in the price or availability of these key inputs or energy costs in the future could have a material adverse impact on our business, financial condition and results of operations.
+Added: Important raw materials and energy used in our businesses in the past have been and may in the future be the subject of volatile pricing.
+Added: Changes in the price of our raw materials have had, and could again have, a material adverse impact on our businesses.
+Added: Natural gas, ammonia and sulfur are key raw materials used in the manufacture of phosphate crop nutrient products.
+Added: Natural gas is used as both a chemical feedstock and a fuel to produce anhydrous ammonia, which is a raw material used in the production of concentrated phosphate products.
+Added: Natural gas is also a significant energy source used in the potash solution mining process.
+Added: From time to time, our profitability has been and may in the future be adversely impacted by the price and availability of these raw materials and other energy costs.
+Added: Because most of our products are commodities, there can be no assurance that we will be able to pass through increased costs to our customers.
+Added: A significant increase in the price of natural gas, ammonia, sulfur or energy costs that is not recovered through an increase in the price of our related crop nutrients products could have a material adverse impact on our business.
+Added: In addition, under an ammonia supply agreement with CF, we have agreed to purchase approximately 545,000 to 725,000 tonnes of ammonia per year at a price to be determined by a formula based on the prevailing price of U.S.
+Added: If the price of natural gas rises or the market price for ammonia falls outside of the range anticipated at execution of this agreement, we may not realize a cost benefit from the natural gas-based pricing over the term of the agreement, or the cost of our ammonia under the agreement could become a competitive disadvantage.
+Added: At times, we have paid considerably more for ammonia under the agreement than what we would have paid had we purchased it in the spot market.
+Added: On October 14, 2022, we received notice from CF to exercise the bilateral, contractual right to end the ammonia supply agreement in its current form, effective January 1, 2025.
+Added: The contract allows for either party to exercise rights on certain dates through 2032 that can result in changes to terms and conditions.
+Added: We expect that we will continue to have adequate sources of supply for ammonia at competitive pricing, including from CF.
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.