3 unchanged sentences
Our objective is to minimize the economic impact of these market risks.
−Removed: We may use derivatives in accordance with policies and procedures approved by the Finance and Strategic Planning Committee of our Board of Directors.
+Added: We may use derivatives in accordance with policies and procedures approved by our Board of Directors.
Foreign Currency
3 unchanged sentences
We do not utilize financial instruments for trading or other speculative purposes.
−Removed: The prices, sales volumes and margins of our High Purity Cellulose operating segment’s commodity products and all the High-Yield Pulp operating segment’s products have historically been cyclically affected by economic and market shifts, fluctuations in capacity and changes in foreign currency exchange rates.
+Added: The prices, sales volumes and margins of our Cellulose Commodities and High-Yield Pulp operating segments’ products have historically been cyclically affected by economic and market shifts, fluctuations in capacity and changes in foreign currency exchange rates.
These products have fewer distinguishing qualities from producer to producer and competition is based primarily on price, which is determined by market supply relative to demand.
The overall levels of demand for the products we manufacture, and consequently our sales and profitability, reflect fluctuations in end user demand.
−Removed: Our cellulose specialties product prices are impacted by market supply and demand, raw material and processing costs, changes in global currencies and other factors.
+Added: Our Cellulose Specialties operating segment’s product prices are impacted by market supply and demand, raw material and processing costs, changes in global currencies and other factors.
Certain key input costs, such as wood fiber, chemicals and energy, may experience significant price fluctuations, also impacted by market shifts, fluctuations in capacity and other demand and supply dynamics.
−Removed: We may periodically enter into commodity forward contracts to fix some of our energy costs that are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors.
+Added: We may periodically enter into commodity forward contracts to fix some of our commodity costs, including our energy costs that are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors.
Such forward contracts partially mitigate the risk of changes to our gross margins resulting from an increase or decrease in these costs.
1 unchanged sentence
Variable Interest Rates
−Removed: At December 31, 2024, we had $702 million of variable rate debt subject to interest rate risk.
−Removed: In the fourth quarter of 2024, we secured variable-rate term loan financing of $700 million, which was used, together with cash on hand, to redeem the respective $453 million and $245 million outstanding principal balances of the fixed-rate 2026 Notes and the variable-rate 2027 Term Loan.
−Removed: The 2029 Term Loan bears interest at an annual rate equal to three-month Term SOFR plus an initial applicable margin of 7 percent.
−Removed: At this new borrowing level, a hypothetical one percent change in interest rates would result in a $7 million annual change in interest expense.
−Removed: At December 31, 2023, we had $255 million of variable rate debt subject to interest rate risk, for which a hypothetical one percent change in interest rates would have resulted in a $2 million annual change in interest expense.
−Removed: The fair market value of our long-term fixed interest rate debt may also be subject to interest rate risk when the debt becomes due or if we do not hold the debt until maturity.
−Removed: The estimated fair value of our fixed-rate debt at December 31, 2024 and 2023 was $75 million and $498 million, respectively, compared to their respective $75 million and $540 million principal amounts.
−Removed: We use quoted market prices to estimate the fair value of our fixed-rate debt.
−Removed: Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise.
+Added: At December 31, 2025 and December 31, 2024, we had $748 million and $702 million, respectively, of variable rate debt subject to interest rate risk.
+Added: At these borrowing levels, a hypothetical one percent change in interest rates would result in a $7 million annual change in interest expense.
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.