9 unchanged sentences
Our earnings are therefore subject to change due to fluctuations in foreign currency exchange rates when the earnings in foreign currencies are translated into U.S.
−Removed: In some cases, we use foreign exchange forward contracts to hedge firm and highly anticipated foreign currency cash flows.
+Added: In some cases, to minimize the effects of such fluctuations, we use foreign exchange forward contracts to hedge firm and highly anticipated foreign currency cash flows.
Our largest exposures are to the Chinese renminbi and the euro.
−Removed: A hypothetical 10 percent change in the average Chinese renminbi and euro to U.S.
−Removed: dollar exchange rates during the year ended December 31, 2020, would have impacted our net sales and income before income taxes by approximately $19 million or two percent and $6 million or two percent, respectively.
+Added: A hypothetical 10 percent adverse change, excluding the impact of any hedging instruments, in the average Chinese renminbi and euro to U.S.
+Added: dollar exchange rates during the year ended December 31, 2021 would have decreased our net sales and income before income taxes for the year ended December 31, 2021 by approximately $21.9 million or two percent and $8.9 million or five percent, respectively.
+Added: Comparatively, a hypothetical 10 percent adverse change in the average Chinese renminbi and euro to U.S.
+Added: dollar exchange rates during the year ended December 31, 2020 would have decreased our net sales and income before income taxes for the year ended December 31, 2020 by approximately $19 million or two percent and $6 million or two percent, respectively.
Concentration of credit risk
2 unchanged sentences
We had accounts receivable from our largest customer of $6.6 million and $5.7 million as of December 31, 2021 and 2020, respectively.
−Removed: Sales to this customer, which are included in the Performance Materials segment, were approximately six percent, five percent, and three percent of total net sales for each of the years ended December 31, 2020, 2019, and 2018, respectively.
−Removed: No customers individually accounted for greater than 10 percent of the Ingevity's consolidated net sales.
+Added: Sales to this customer, which are included in the Performance Materials segment, were approximately five percent, five percent, and four percent of total net sales for each of the years ended December 31, 2021, 2020, and 2019, respectively.
+Added: Sales to the automotive industry represented approximately 35 percent of Ingevity’s consolidated Net sales and are our largest industry concentration risk.
+Added: No customer individually accounted for greater than 10 percent of Ingevity's consolidated net sales.
Commodity price risk
4 unchanged sentences
Crude tall oil price risk
−Removed: Our results of operations are directly affected by the cost of our raw materials, particularly crude tall oil ("CTO"), which is approximately 11 percent of consolidated cost of sales and 37 percent of our raw materials purchases for the year ended December 31, 2020.
−Removed: Pricing for CTO is subject to particular pricing pressures by reasons of the limited supply elasticity of the product and competing demands for its use, both of which drive pressure on price.
−Removed: Our gross profit and margins could be adversely affected by changes in the cost of CTO if we are unable to pass the increases on to our customers.
−Removed: CTO is a thinly traded commodity with pricing commonly established for periods ranging from one quarter to one year periods of time.
−Removed: We try to protect against such pricing fluctuations through various business strategies.
−Removed: Based on average pricing during the year ended December 31, 2020, a hypothetical unhedged, unfavorable 10 percent change in the market price for CTO would have impacted costs of sales by approximately $8 million or one percent, which we may or may not have been able to pass on to our customers.
+Added: Our results of operations are directly affected by the cost of our raw materials, particularly crude tall oil ("CTO"), which represents approximately 10 percent of consolidated cost of sales and 22 percent of our raw materials purchases for the year ended December 31, 2021.
+Added: Pricing for CTO is driven by the limited supply elasticity of the product and competing demands for its use, both of which drive pressure on price.
+Added: Our gross profit and margins could be adversely affected by increases in the cost of CTO if we are unable to pass the increases on to our customers.
+Added: CTO is a thinly traded commodity with pricing commonly established for periods ranging from one quarter to one year.
+Added: We try to protect against pricing fluctuations through various business strategies.
+Added: Based on average pricing during the year ended December 31, 2021, a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our cost of sales for the year ended December 31, 2021 by approximately $9 million or one percent, which we may or may not have been able to pass on to
+Added: our customers.
+Added: Comparatively, based on average pricing during the year ended December 31, 2020 , a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our cost of sales for the year ended December 31, 2020 by approximately $8 million or one percent.
Natural gas price risk
−Removed: Natural gas is our largest form of energy purchases constituting approximately two percent of our cost of goods sold for the year ended December 31, 2020.
+Added: Natural gas, both direct and indirect, is our largest form of utility costs constituting approximately five percent of our cost of goods sold for the year ended December 31, 2021.
Increases in natural gas costs, unless passed on to our customers, would adversely affect our results of operations.
3 unchanged sentences
Item 8 of this Form 10-K for more information on our natural gas price risk hedging program.
−Removed: For the year ended December 31, 2020, a hypothetical, unhedged 10 percent increase in natural gas pricing would have resulted in an increase to cost of sales of approximately $1.2 million or two percent.
+Added: For the year ended December 31, 2021, a hypothetical, unhedged 10 percent increase in natural gas pricing would have resulted in an increase to cost of sales of approximately $4.3 million or 50 basis points.
As of December 31, 2021, we had 1.4 million and 1.0 million mmBTUS (millions of British Thermal Units) in aggregate notional volume of outstanding natural gas commodity swap contracts and zero cost collar option contracts, respectively, designated as cash flow hedges.
−Removed: As of December 31, 2020, open commodity contracts hedge forecasted transactions until February 2022.
+Added: Comparatively, for the year ended December 31, 2020, a hypothetical, unhedged 10 percent increase in natural gas pricing would have resulted in an increase to cost of sales of approximately $2.4 million or 30 basis points.
+Added: As of December 31, 2021, open commodity contracts hedge forecasted transactions until March 2023.
The fair value of the outstanding designated natural gas commodity hedge contracts as of December 31, 2021 and 2020 was a net liability of $0.6 million and $0.1 million, respectively.
2 unchanged sentences
As a result, we are subject to interest rate risk with respect to such floating-rate debt.
−Removed: A 100 basis point increase in the variable interest rate component of our borrowings would increase our annual interest expense by approximately $4 million or eight percent.
+Added: For the year ended December 31, 2021, a hypothetical 100 basis point increase in the variable interest rate component of our borrowings would increase our annual interest expense by approximately $3 million or seven percent.
+Added: Comparatively, for the year ended December 31, 2020, a hypothetical 100 basis point increase in the variable interest rate component of our borrowings would have increased our annual interest expense by approximately $4 million or eight percent.
As of December 31, 2021, we have entered into an interest rate swap with a notional amount of $166.2 million to manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $166.2 million of our floating rate debt to a fixed rate.
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.