5 unchanged sentences
Dollars and various other currencies, which subject us to exposure from movements in exchange rates.
−Removed: We may use foreign exchange option contracts or forward contracts to hedge a portion of our forecasted foreign currency denominated revenue.
+Added: We may use foreign exchange option contracts or forward contracts to hedge a portion of our forecasted foreign currency denominated revenue and expenses.
Additionally, we hedge our net recognized foreign currency monetary assets and liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates.
5 unchanged sentences
Australian Dollars $ 876 $ 768 $ 645
−Removed: As of December 3, 2021, the total notional amounts of all outstanding foreign exchange contracts, including options and forwards, were $3.03 billion, which included the notional equivalent of $1.47 billion in Euros, $480 million in British Pounds, $448 million in Japanese Yen, $338 million in Australian Dollars and $299 million in other foreign currencies.
−Removed: As of December 3, 2021, all contracts were set to expire at various dates through June 2022.
+Added: As of December 2, 2022, the total notional amounts of all outstanding foreign exchange contracts, including options and forwards, were $3.25 billion, which included the notional equivalent of $1.32 billion in Euros, $602 million in Indian Rupees, $480 million in British Pounds, $394 million in Japanese Yen, $338 million in Australian Dollars and $112 million in other foreign currencies.
+Added: As of December 2, 2022, all contracts were set to expire at various dates through November 2023.
The bank counterparties in these contracts could expose us to credit-related losses that would be largely mitigated with master netting arrangements with the same counterparty by permitting net settlement transactions.
5 unchanged sentences
Dollar and a corresponding decrease in the value of the hedged foreign currency asset would lead to an increase in the fair value of our financial hedging instruments by $75 million.
−Removed: Conversely, a 10% decrease in the value of the U.S.
−Removed: Dollar would result in a decrease in the fair value of these financial instruments by $76 million.
+Added: A 10% decrease in the value of the U.S.
+Added: Dollar would lead to an increase in the fair value of these financial instruments by $17 million.
As a general rule, we do not use foreign exchange contracts to hedge local currency denominated operating expenses in countries where a natural hedge exists.
−Removed: For example, in many countries, revenue in the local currencies substantially offsets the
−Removed: Table of Content s
−Removed: local currency denominated operating expenses.
+Added: For example, in many countries, revenue in the local currencies substantially offsets the local currency denominated operating expenses.
We also have long-term investment exposures consisting of the capitalization and retained earnings in our non-U.S.
Dollar functional currency foreign subsidiaries.
−Removed: As of December 3, 2021 and November 27, 2020, this long-term investment exposure totaled an absolute notional equivalent of $749 million and $598 million, respectively, with the year-over-year increase primarily driven by earnings growth.
+Added: As of December 2, 2022 and December 3, 2021, this long-term investment exposure totaled an absolute notional equivalent of $770 million and $749 million, respectively.
At this time, we do not hedge these long-term investment exposures.
1 unchanged sentence
We regularly review our hedging program and assess the need to utilize financial instruments to hedge currency exposures on an ongoing basis.
−Removed: Cash Flow Hedges of Forecasted Foreign Currency Revenue
−Removed: We may use foreign exchange purchased options or forward contracts to hedge foreign currency revenue denominated in Euros, British Pounds, Japanese Yen and Australian Dollars.
+Added: Cash Flow Hedges of Forecasted Foreign Currency Revenue and Expenses
+Added: We may use foreign exchange purchased options or forward contracts to hedge foreign currency revenue denominated in Euros, British Pounds, Japanese Yen and Australian Dollars, or foreign currency expenses in Indian Rupees.
We hedge these cash flow exposures to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates.
These foreign exchange contracts, carried at fair value, have maturities of up to twelve months.
−Removed: We enter into these foreign exchange contracts to hedge forecasted revenue in the normal course of business and accordingly, they are not speculative in nature.
−Removed: We record changes in fair value of these cash flow hedges of foreign currency denominated revenue in accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs.
−Removed: When the forecasted transaction affects earnings, we reclassify the related gain or loss on the cash flow hedge to revenue.
−Removed: In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to revenue.
−Removed: For the fiscal year ended December 3, 2021, there were no net gains or losses recognized in revenue relating to hedges of forecasted transactions that did not occur.
+Added: We enter into these foreign exchange contracts to hedge forecasted revenue and expenses in the normal course of business and accordingly, they are not speculative in nature.
+Added: We record changes in fair value of these cash flow hedges of foreign currency denominated revenue and expenses in accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs.
+Added: When the forecasted transaction affects earnings, we reclassify the related gain or loss on the cash flow hedge to revenue or
+Added: operating expenses, as applicable.
+Added: In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to revenue or operating expenses, as applicable.
+Added: For the fiscal year ended December 2, 2022, there were no net gains or losses recognized in revenue or operating expenses relating to hedges of forecasted transactions that did not occur.
Non-Designated Hedges of Foreign Currency Assets and Liabilities
8 unchanged sentences
Changes in interest rates could adversely affect the market value of these investments.
−Removed: A sensitivity analysis was performed on our investment portfolio as of December 3, 2021, based on an estimate of the hypothetical changes in market value of the portfolio that would result from an immediate parallel shift in the yield curve.
+Added: A sensitivity analysis was performed on our short-term investment portfolio as of December 2, 2022, based on an estimate of the hypothetical changes in market value of the portfolio that would result from an immediate parallel shift in the yield curve.
A 150 basis point increase in interest rates would lead to a $20 million decrease in the market value of our short-term investments.
3 unchanged sentences
See Note 17 of our Notes to Consolidated Financial Statements for information regarding our senior notes.
−Removed: Table of Content s
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.