−Removed: We updated certain of our previously disclosed risk factors in the offering materials for the senior notes offering discussed under Recent Developments—2020 Senior Notes Issuance and Revolving Credit Facility Amendment in MD&A.
−Removed: Other than these updated risk factors, which are provided below, there have been no material changes in our risk factors as discussed in Part I, Item 1A of the 2019 Annual Report and Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.
−Removed: We are exposed to the risks inherent in international sales and operations.
−Removed: In 2019, sales outside of the U.S.
−Removed: made up approximately 40 percent of our total sales, and we sell our products to customers in approximately 75 countries.
−Removed: We have exposure to risks of operating in many foreign countries, including:
−Removed: • fluctuations in foreign currency exchange rates, including the euro, pound sterling, Japanese yen and Chinese renminbi;
−Removed: • restrictions on, or difficulties and costs associated with, the repatriation of cash from foreign countries to the U.S.;
−Removed: • difficulties and costs associated with complying with a wide variety of complex laws, treaties and regulations;
−Removed: • unexpected changes in political or regulatory environments;
−Removed: • earnings and cash flows that may be subject to tax withholding requirements or the imposition of tariffs, exchange controls or other restrictions;
−Removed: • political and economic instability;
−Removed: • unforeseen public health crises, such as pandemic and epidemic diseases (including the recent coronavirus disease 2019 (COVID-19) (the “Coronavirus”));
−Removed: • import and export restrictions, tariffs, and other trade barriers or retaliatory actions;
−Removed: • difficulties in maintaining overseas subsidiaries and international operations;
−Removed: • difficulties in obtaining approval for significant transactions;
−Removed: • government limitations on foreign ownership;
−Removed: • government takeover or nationalization of business;
−Removed: • government mandated price controls.
−Removed: Any one or more of the above factors could adversely affect our international operations and could significantly affect our financial condition and results of operations.
−Removed: We have also expanded our participation in certain markets.
−Removed: As our international operations and activities expand, we inevitably have greater exposure to the risks of operating in many foreign countries.
Adverse conditions in the automotive market may adversely affect demand for our automotive carbon products.
2 unchanged sentences
For example, the global economic downturn in 2008/2009, led to a drastic reduction in vehicle sales and an even greater reduction in vehicle production as OEMs right-sized their inventories to meet the lower sales volumes.
−Removed: Regional disruptions due to localized natural disasters or multi-month strikes at suppliers or OEMs can also significantly impact vehicle production and therefore demand for our automotive carbon.
−Removed: Additionally, if the Coronavirus pandemic continues, it could negatively impact demand for automotive sales, which would adversely impact sales of our carbon products, as was the case in the second quarter of 2020.
−Removed: The extent to which the Coronavirus pandemic impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including the severity of the Coronavirus, actions to contain the Coronavirus or treat its impact, among others.
−Removed: The Company’s oilfield technologies business is significantly affected by trends in oil and natural gas prices that affect the level of exploration, development and production activity.
−Removed: Demand for our oilfield technologies services and products is particularly sensitive to the level of exploration, development and production activity of, and the corresponding capital spending by, oil and natural gas companies, including national oil companies.
−Removed: The level of exploration, development and production activity is directly affected by trends in oil and natural gas prices, which historically have been volatile.
−Removed: Crude oil prices have declined significantly since 2014, with West Texas Intermediate oil spot prices declining from a high of $108 per barrel in June 2014 to a low of $27 per barrel in February 2016, a level which had not been experienced since 2003.
−Removed: In 2020, pricing has moved from $58 per barrel in January to a low of $16 per barrel in April to $41 per barrel in September.
−Removed: Unless potential hostilities between the U.S.
−Removed: and Iran escalate, pricing is not currently forecasted to change significantly from these levels during 2020.
−Removed: While these pricing levels are significantly above the February 2016 levels, they remain off their highs seen in the last decade.
−Removed: Any prolonged low pricing environment for oil and natural gas is likely to result in reduced demand for our oilfield technology products, which may have a material adverse effect on our results of operations.
−Removed: Disruptions at any of our manufacturing facilities or within our supply chain could negatively impact our production, financial condition and results of operations.
−Removed: An operational disruption in any of our facilities could negatively impact production and our financial results.
−Removed: The occurrence of a natural disaster, such as a hurricane, tropical storm, earthquake, tornado, severe weather, flood, fire, as well as risk that may result from climate change, could cause operational disruptions.
−Removed: Additionally, other unanticipated problems such as labor difficulties, health epidemics (including the recent Coronavirus pandemic), equipment failure, capacity expansion difficulties or unscheduled maintenance could also cause operational disruptions of varied duration.
−Removed: These types of disruptions could materially adversely affect our financial condition and results of operations to varying degrees dependent upon the facility, the duration of the disruption, our ability to shift business to another facility or find alternative sources of materials or energy.
−Removed: In certain cases, we have some products that are only made at one facility.
−Removed: For example, in the case of our Waynesboro, Georgia facility, while we have some redundancies within the facility, we only have one facility that makes our extruded honeycomb products.
−Removed: In the case of our Warrington, UK facility, while we have some redundancies within the facility, we only have one facility that makes our caprolactone products.
−Removed: As other examples, in our Charleston SC facility, we source black liquor from an adjacent paper mill to isolate and subsequently modify lignin to serve our agriculture customers while we make the vast majority of our ink resin products in our DeRidder, Louisiana facility.
−Removed: While we have redundancies within these facilities, we have limited ability to make these products at other facilities.
−Removed: Finally, the Coronavirus pandemic is causing travel disruptions, quarantines and/or closures, which could result in disruptions to our manufacturing and production operations at our facilities, as well as those of our suppliers and customers.
−Removed: Any losses due to these events may not be covered by our existing insurance policies or may be subject to certain deductibles.
−Removed: We could be similarly adversely affected by disruptions within our supply chain and transportation network.
−Removed: Our products are transported by truck, rail, barge or ship by third-party providers.
−Removed: The costs of transporting our products could be negatively affected by factors outside of our control, including rail service interruptions or rate increases, extreme weather events, tariffs, rising fuel costs and capacity constraints.
−Removed: Significant delays or increased costs affecting these transportation methods could materially affect our financial condition and results of operations.
−Removed: Disruptions at our suppliers could lead to short term or longer rises in raw material or energy costs and/or reduced availability of materials or energy, potentially affecting our financial condition and results of operations.
−Removed: For example, Solvay is our primary provider of hydrogen peroxide to our Warrington, UK Performance Chemicals facility, which is co-located with the Solvay Warrington, UK chemical plant (“Solvay Plant”).
−Removed: Disruptions at the Solvay Plant impacting Solvay’s ability to supply hydrogen peroxide could adversely affect our financial condition and results of operations.
−Removed: See also “—General Business and Economic Risks—Our engineered polymers product line may be adversely affected by the United Kingdom’s withdrawal from the European Union.”
−Removed: As we rely on information technologies to conduct our business, security breaches and other disruptions could compromise our information and expose us to liability, which could cause our business and reputation to suffer.
−Removed: We rely on information technologies, some of which are managed by third parties, to manage the day-to-day operations and activities of our business, operate elements of our manufacturing facilities, manage our customer and vendor transactions, and maintain our financial, accounting and business records.
−Removed: In addition, we collect and store certain data, including proprietary business information, and may have access to confidential or personal information that is subject to privacy and security laws and regulations.
−Removed: The secure processing, maintenance and transmission of sensitive, confidential and personal data is critical to our operations and business strategy.
−Removed: We follow industry best practices and have instituted a system of security policies, procedures, capabilities, and internal controls designed to protect this information.
−Removed: Additionally, we engage third-party threat detection and monitoring services which includes a global cyber security incident response team.
−Removed: Despite our security design and controls, and those of our third-party providers, we may be vulnerable to cyber- attacks, computer viruses, security breaches, inadvertent or intentional employee actions, system failures and other risks that could potentially lead to the compromising of sensitive, confidential or personal data, improper use of our, or our third-party provider systems, solutions or networks, unauthorized access, use, disclosure, modification or destruction of information, and operational disruptions.
−Removed: In addition, the global regulatory environment pertaining to information security and privacy is increasingly demanding, with new and changing requirements, such as the European Union’s General Data Protection Regulation (“GDPR”), California Consumer Privacy Act (“CCPA”), and the China Cybersecurity Law.
−Removed: GDPR, which applies to the collection, use, retention, security, processing, and transfer of personally identifiable information of residents of EU countries, mandates new compliance obligations, and imposes significant fines and sanctions for violations.
−Removed: CCPA requires companies to provide new data disclosure, access, deletion and opt-out rights to consumers in California.
−Removed: Implementing and complying with these laws and regulations may be more costly or take longer than we anticipate, or could otherwise affect our business operations.
−Removed: Such breaches, cyber incidents and disruptions, or failure to comply with laws and regulations related to information security or privacy, could result in legal claims or proceedings against us by governmental entities or individuals, significant fines, penalties or judgements, disruption of our operations, remediation requirements, changes to our business practices, and damage to our reputation, which could adversely affect our business, financial condition or results of operations.
+Added: Furthermore, primarily during the first half of 2020, the COVID-19 pandemic led to a significant reduction in vehicle production and vehicles sales were negatively impacted by government shutdown orders and stay-at-home directives.
+Added: Additionally, microchip shortages during 2021 have resulted in reduced vehicle production and as a result vehicle sales have been negatively impacted.
+Added: We currently anticipate this negative impact to continue into the second half of 2021.
+Added: Regional disruptions due to localized natural disasters or multi-month strikes at suppliers or OEMs can also significantly impact vehicle production and therefore demand for our automotive carbon products.
+Added: Additionally, if the COVID-19 pandemic continues, it could negatively impact demand for automotive sales, which would adversely impact sales of our carbon products, as was the case in the second quarter of 2020.
+Added: The extent to which COVID-19 pandemic impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including the severity of the COVD-19 pandemic, actions to contain COVID-19 or treat its impact, among others.
+Added: There have been no other material changes in Ingevity's risk factors discussed in Item 1A of the 2020 Form 10-K.
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.