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 24 percent of our net sales in the first six months of 2025.
+Added: We have foreign-based operations, primarily in Europe, South America and Asia, which accounted for approximately 25 percent of our net sales in the first nine months of 2025.
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 Brazilian real, Chinese renminbi and euro to U.S.
−Removed: dollar exchange rates during the six months ended June 30, 2025, would have decreased our net sales and income before income taxes by approximately $7.8 million or one percent, and $2.7 million or two percent, respectively.
+Added: dollar exchange rates during the nine months ended September 30, 2025, would have decreased our net sales and income from continuing operations before income taxes by approximately $10.8 million or one percent, and $3.5 million or ten percent, respectively.
Comparatively, a hypothetical 10 percent adverse change, excluding the impact of any hedging instruments, in the average Brazilian real, Chinese renminbi and euro to U.S.
−Removed: dollar exchange rates during the six months ended June 30, 2024, would have decreased our net sales and income before income taxes by approximately $8.4 million or one percent, and $2.9 million or one percent, respectively.
+Added: dollar exchange rates during the nine months ended September 30, 2024, would have decreased our net sales and income from continuing operations before income taxes by approximately $11.0 million or one percent, and $3.6 million or two percent, respectively.
Interest rate risk
1 unchanged sentence
In accordance with the terms of this instrument, we receive floating rate interest payments based upon one-month U.S.
−Removed: dollar SOFR, which was 4.32 percent as of June 30, 2025, and in return are obligated to pay interest at a fixed rate of 3.84 percent until August 2026.
−Removed: The fair value of the interest rate swap was an asset (liability) of $(0.2) million and $0.6 million at June 30, 2025 and December 31, 2024, respectively.
−Removed: As of June 30, 2025, approximately $485 million of our borrowings, adjusted for our $200.0 million floating-to-fixed interest rate swap, included a variable interest rate component.
−Removed: The weighted average interest rate associated with our variable interest rate borrowings was 5.69 percent for the period ended June 30, 2025.
−Removed: A hypothetical 100 basis point increase in the variable interest rate component of our borrowings for the six months ended June 30, 2025, would have increased our annual interest expense by approximately $4.8 million or seven percent.
−Removed: Comparatively, a 100 basis point increase in the variable interest rate component of our borrowings for the six months ended June 30, 2024, would have increased our annual interest expense by approximately $8.5 million or 10 percent.
+Added: dollar SOFR, which was 4.13 percent as of September 30, 2025, and in return are obligated to pay interest at a fixed rate of 3.84 percent until August 2026.
+Added: The fair value of the interest rate swap was an asset (liability) of $(0.3) million and $0.6 million at September 30, 2025 and December 31, 2024, respectively.
+Added: As of September 30, 2025, approximately $415 million of our borrowings, adjusted for our $200.0 million floating-to-fixed interest rate swap, included a variable interest rate component.
+Added: The weighted average interest rate associated with our variable interest rate borrowings was 5.75 percent for the period ended September 30, 2025.
+Added: A hypothetical 100 basis point increase in the variable interest rate component of our borrowings for the nine months ended September 30, 2025, would have increased our annual interest expense by approximately $4.1 million or seven percent.
+Added: Comparatively, a 100 basis point increase in the variable interest rate component of our borrowings for the nine months ended September 30, 2024, would have increased our annual interest expense by approximately $6.5 million or eight percent.
Commodity price risk
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Accordingly, product margins and the level of our profitability tend to fluctuate with the changes in these commodity prices.
−Removed: Crude tall oil price risk
−Removed: Our results of operations are directly affected by the cost of our raw materials, particularly CTO, which, excluding CTO resales, represented 7 percent and 16 percent of our condensed consolidated cost of sales for the six months ended June 30, 2025 and 2024, respectively.
−Removed: Raw material CTO spend was approximately $8 million and $18 million during the three and six months ended June 30, 2025.
−Removed: Comparatively, total raw material CTO spend was approximately $55 million and $111 million during the three and six months ended June 30, 2024.
−Removed: 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.
−Removed: 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 three and six months ended June 30, 2025, a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our cost of sales by approximately $0.8 million (zero percent) and $1.8 million (zero percent), respectively, which we may not have been able to pass on to our customers.
−Removed: Comparatively, based on average pricing during the three and six months ended June 30, 2024, a hypothetical unhedged, unfavorable 10 percent increase in the market price for CTO would have increased our cost of sales by approximately $5.5 (two percent) and $11.1 million (two percent), respectively.
−Removed: The repositioning of the Performance Chemicals reportable segment and the termination of the long-term CTO supply contract have significantly reduced the company's volume requirements and exposure to CTO beginning in 2025.
Natural gas price risk
−Removed: Natural gas, both direct and indirect, is our largest form of energy costs constituting approximately four percent of our cost of goods sold for the six months ended June 30, 2025.
+Added: Natural gas, both direct and indirect, is our largest form of energy costs constituting approximately four percent of our cost of goods sold for the nine months ended September 30, 2025.
Increases in natural gas costs, unless passed on to our customers, would adversely affect our results of operations.
2 unchanged sentences
Refer to Note 8 for more information on our natural gas price risk hedging program.
−Removed: For the three and six months ended June 30, 2025, a hypothetical, unhedged 10 percent increase in natural gas pricing would have resulted in an increase to cost of sales of approximately $0.7 million (28 basis points) and $1.6 million (39 basis points).
−Removed: Comparatively, for the three and six months ended June 30, 2024, a hypothetical, unhedged 10 percent increase in natural gas pricing would have resulted in an increase to cost of sales of approximately $0.9 million (33 basis points) and $1.9 million (36 basis points).
−Removed: As of June 30, 2025, we had 1.8 million mmBTUS (millions of British Thermal Units) in open natural gas derivative contracts, designated as cash flow hedges.
−Removed: As of June 30, 2025, open natural gas derivative contracts hedge a portion of forecasted transactions until September 2026.
−Removed: The fair value of the open natural gas derivative contracts was a net asset (liability) of $(0.5) million and $0.3 million as of June 30, 2025 and December 31, 2024, respectively.
+Added: For the three and nine months ended September 30, 2025, a hypothetical, unhedged 10 percent increase in natural gas pricing would have resulted in an increase to cost of sales of approximately $0.7 million (34 basis points) and $2.1 million (39 basis points).
+Added: Comparatively, for the three and nine months ended September 30, 2024, a hypothetical, unhedged 10 percent increase in natural gas pricing would have resulted in an increase to cost of sales of approximately $0.7 million (34 basis points) and $2.1 million (36 basis points).
+Added: As of September 30, 2025, we had 1.5 million mmBTUS (millions of British Thermal Units) in open natural gas derivative contracts, designated as cash flow hedges.
+Added: As of September 30, 2025, open natural gas derivative contracts hedge a portion of forecasted transactions until September 2026.
+Added: The fair value of the open natural gas derivative contracts was a net asset (liability) of $(0.8) million and $0.3 million as of September 30, 2025 and December 31, 2024, respectively.
Other market risks
−Removed: Information about our other remaining market risks for the period ended June 30, 2025, does not differ materially from that discussed under Part II, Item 7A.
+Added: Information about our other remaining market risks for the period ended September 30, 2025, does not differ materially from that discussed under Part II, Item 7A.
Quantitative and Qualitative Disclosures About Market Risk of our 2024 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.