4 unchanged sentences
Aircraft Fuel
−Removed: As of September 30, 2022, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption.
+Added: As of March 31, 2023, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption.
Our current policy is not to enter into transactions to hedge our fuel consumption, although we review that policy from time to time based on market conditions and other factors.
As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices.
−Removed: Based on our 2022 forecasted fuel consumption, we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2022 annual fuel expense by approximately $40 million.
+Added: Based on our 2023
+Added: T able of Contents
+Added: forecasted fuel consumption, we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2023 annual fuel expense by approximately $40 million.
Foreign Currency
1 unchanged sentence
dollar value of foreign currency-denominated transactions.
−Removed: Our largest exposure comes from the Euro, British pound sterling, various Latin American currencies, primarily the Brazilian real, Canadian dollar and Chinese yuan.
+Added: Our largest exposure comes from the Euro, British pound sterling, Canadian dollar and various Latin American currencies (primarily the Brazilian real).
We do not currently have a foreign currency hedge program.
4 unchanged sentences
Our earnings and cash flow are affected by changes in interest rates due to the impact those changes have on our interest expense from variable-rate debt instruments and our interest income from short-term, interest-bearing investments.
−Removed: If annual interest rates increase 100 basis points, based on our September 30, 2022 variable-rate debt and short-term investments balances, annual interest expense on variable rate debt would increase by approximately $140 million and annual interest income on short-term investments would increase by approximately $110 million.
+Added: If annual interest rates increase 100 basis points, based on our March 31, 2023 variable-rate debt and short-term investments balances, annual interest expense on variable rate debt would increase by approximately $90 million and annual interest income on short-term investments would increase by approximately $115 million.
On July 27, 2017, the U.K.
−Removed: Financial Conduct Authority (the authority that regulates LIBOR) announced that it intends to stop compelling banks to submit rates for the calculation of the London interbank offered rate (LIBOR) after 2021.
+Added: Financial Conduct Authority (the authority that regulates the London Interbank Offered Rate (LIBOR)) announced its intention to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
The discontinuation date for submission and publication of rates for certain tenors of USD LIBOR (1-month, 3-month, 6-month, and 12-month) was subsequently extended by the ICE Benchmark Administration (the administrator of LIBOR) until June 30, 2023.
−Removed: It is unclear whether new methods of calculating LIBOR will be established such that it continues to exist after 2023.
−Removed: Similarly, it is not possible to predict whether LIBOR will continue to be viewed as an acceptable market benchmark, what rate or rates may become acceptable alternatives to LIBOR, or what effect these changes in views or alternatives may have on financial markets for LIBOR-linked financial instruments.
+Added: It is not possible to predict what rate or rates may become the predominant alternative to LIBOR, or what effect these changes in views or alternatives may have on financial markets for LIBOR-linked financial instruments.
While the U.S.
−Removed: Federal Reserve, in conjunction with the Alternative Reference Rates Committee, has chosen the secured overnight financing rate (SOFR) as the recommended risk-free reference rate for the U.S.
+Added: Federal Reserve, in conjunction with the Alternative Reference Rates Committee, has chosen the Secured Overnight Financing Rate (SOFR), and specifically Term SOFR, as the recommended risk-free reference rate for the U.S.
(calculated based on repurchase agreements backed by treasury securities), we cannot currently predict the extent to which this index will gain widespread acceptance as a replacement for LIBOR.
It is not possible to predict the effect of these changes, other reforms or the establishment of alternative reference rates in the United Kingdom, the United States or elsewhere.
−Removed: We may in the future pursue amendments to our LIBOR-based debt transactions to provide for a transition mechanism or other reference rate in anticipation of LIBOR’s discontinuation, but we may not be able to reach agreement with our lenders on any such amendments.
−Removed: As of September 30, 2022, we had $10.5 billion of borrowings linked to LIBOR.
−Removed: The replacement of LIBOR with a comparable or successor rate could cause the amount of interest payable on our long-term debt to be different or higher than expected.
+Added: As of March 31, 2023, we had $5.3 billion of borrowings with interest rates linked to LIBOR.
+Added: We have commenced the process of amending our LIBOR-based financing agreements to transition them to successor reference rates in anticipation of LIBOR’s discontinuation, but we may not be able to reach agreements with all affected counterparties, or to do so on favorable terms.
+Added: Additionally, the replacement of LIBOR with a comparable or successor rate could cause the amount of interest payable on our long-term debt to be different or higher than expected.
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.