1 unchanged sentence
Foreign currency exchange rate risk
−Removed: We have foreign-based operations, primarily in Europe, South America and Asia, which accounted for approximately 21 percent of our net sales in the first nine months of 2023.
+Added: We have foreign-based operations, primarily in Europe, South America and Asia, which accounted for approximately 24 percent of our net sales in the first three months of 2024.
We have designated the local currency as the functional currency of our significant operations outside of the U.S.
8 unchanged sentences
A hypothetical 10 percent adverse change, excluding the impact of any hedging instruments, in the average Chinese renminbi and euro to U.S.
−Removed: dollar exchange rates during the nine months ended September 30, 2023, would have decreased our net sales and income before income taxes by approximately $13.2 million or one percent, and $3.9 million or one percent, respectively.
+Added: dollar exchange rates during the three months ended March 31, 2024, would have decreased our net sales and income before income taxes by approximately $3.9 million or one percent, and $1.2 million or two percent, respectively.
Comparatively, a hypothetical 10 percent adverse change, excluding the impact of any hedging instruments, in the average Chinese renminbi and euro to U.S.
−Removed: dollar exchange rates during the nine months ended September 30, 2022, would have decreased our net sales and income before income taxes by approximately $15.0 million or one percent, and $5.9 million or two percent, respectively.
+Added: dollar exchange rates during the three months ended March 31, 2023, would have decreased our net sales and income before income taxes by approximately $3.8 million or one percent, and $1.1 million or two percent, respectively.
Interest rate risk
−Removed: As of September 30, 2023, approximately $827.0 million of our borrowings include a variable interest rate component.
+Added: As of March 31, 2024, approximately $847.6 million of our borrowings include a variable interest rate component.
As a result, we are subject to interest rate risk with respect to such floating-rate debt.
−Removed: A hypothetical 100 basis point increase in the variable interest rate component of our borrowings for the nine months ended September 30, 2023, would have increased our annual interest expense by approximately $8.3 million or ten percent.
−Removed: Comparatively, a 100 basis point increase in the variable interest rate component of our borrowings for the nine months ended September 30, 2022, would have increased our interest expense by approximately $5.1 million or ten percent.
+Added: A hypothetical 100 basis point increase in the variable interest rate component of our borrowings for the three months ended March 31, 2024, would have increased our annual interest expense by approximately $8.5 million or ten percent.
+Added: Comparatively, a 100 basis point increase in the variable interest rate component of our borrowings for the three months ended March 31, 2023, would have increased our interest expense by approximately $8.6 million or eleven percent.
Commodity price risk
2 unchanged sentences
Crude tall oil price risk
−Removed: Our results of operations are directly affected by the cost of our raw materials, particularly CTO, which represented approximately 25 percent of our consolidated cost of sales for the nine months ended September 30, 2023.
−Removed: Comparatively, CTO represented approximately 13 percent of our consolidated cost of sales for the nine months ended September 30, 2022.
+Added: Our results of operations are directly affected by the cost of our raw materials, particularly CTO.
+Added: Total raw material CTO spend was approximately $74 million during the three months ended March 31, 2024.
+Added: Comparatively, total raw material CTO spend was approximately $41 million during the three months ended March 31, 2023.
Pricing for CTO is driven by the limited supply of the product and competing demands for its use, both of which drive pressure on its price.
Our gross profit and margins have been and could continue to be adversely affected by increases in the cost of CTO if we are unable to pass the increases on to our customers.
−Removed: Based on average pricing during the nine months ended September 30, 2023, a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our cost of sales for the nine months ended September 30, 2023, by approximately $22 million or two percent, which we may not have been able to pass on to our customers.
−Removed: Comparatively, based on average pricing during the nine months ended September 30, 2022, a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our cost of sales for the nine months ended September 30, 2022, by approximately $10 million or one percent.
+Added: Based on average pricing during the three months ended March 31, 2024, a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our spend for the three months
+Added: ended March 31, 2024, by approximately $7.4 million, which we may not have been able to pass on to our customers.
+Added: Comparatively, based on average pricing during the three months ended March 31, 2023, a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our spend for the three months ended March 31, 2023, by approximately $4.1 million.
Other market risks
−Removed: Information about our other remaining market risks for the period ended September 30, 2023, does not differ materially from that discussed under Part II, Item 7A.
+Added: Information about our other remaining market risks for the period ended March 31, 2024, does not differ materially from that discussed under Part II, Item 7A.
Quantitative and Qualitative Disclosures About Market Risk of our 2023 Annual Report.
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.