8 unchanged sentences
We primarily use forward contracts to hedge the foreign exchange risk to earnings relating to forecasted transactions and recognized assets and liabilities denominated in foreign currencies.
−Removed: The maximum term over which we have cash flow hedge contracts in place related to foreign exchange risk on forecasted transactions as of June 30, 2024 is 12 months.
+Added: The maximum term over which we have cash flow hedge contracts in place related to foreign exchange risk on forecasted transactions as of September 30, 2024 is 12 months.
We also enter into derivative instruments to hedge foreign exchange risk on certain intra-company and third-party receivables and payables and debt denominated in foreign currencies.
As part of our risk-management program, we perform sensitivity analyses to assess potential changes in the fair value of our foreign exchange instruments relating to hypothetical and reasonably possible near-term movements in foreign exchange rates.
−Removed: A sensitivity analysis of changes in the fair value of foreign exchange contracts outstanding as of June 30, 2024, while not predictive in nature, indicated that if the U.S.
−Removed: Dollar uniformly weakened by 10% against all currencies, the net pre-tax asset balance of $1 million with respect to those contracts would change by $40 million.
−Removed: The sensitivity analysis model recalculates the fair value of the foreign exchange contracts outstanding as of June 30, 2024 by replacing the actual exchange rates as of June 30, 2024 with exchange rates that are 10% weaker compared to the actual exchange rates for each applicable currency.
+Added: A sensitivity analysis of changes in the fair value of foreign exchange contracts outstanding as of September 30, 2024, while not predictive in nature, indicated that if the U.S.
+Added: Dollar uniformly weakened by 10% against all currencies, the net pre-tax liability balance of $5 million with respect to those contracts would change by $5 million.
+Added: The sensitivity analysis model recalculates the fair value of the foreign exchange contracts outstanding as of September 30, 2024 by replacing the actual exchange rates as of September 30, 2024 with exchange rates that are 10% weaker compared to the actual exchange rates for each applicable currency.
All other factors are held constant.
1 unchanged sentence
The analyses also disregard the offsetting change in value of the underlying hedged transactions and balances.
−Removed: In February 2022, the three-year cumulative inflation rate in Turkey exceeded 100 percent.
−Removed: As a result, on April 1, 2022, we began reporting the results of our subsidiary in that jurisdiction using highly inflationary accounting, which requires that the functional currency of the entity be changed to the reporting currency of its parent.
−Removed: As of June 30, 2024, our subsidiary in Turkey had net monetary assets of $16 million.
Interest Rate and Other Risks
Refer to the caption “Interest Rate and Other Risks” in the “Financial Instrument Market Risk” section of the 2023 Annual Report.
−Removed: There were no significant changes during the quarter ended June 30, 2024.
+Added: There were no significant changes during the quarter ended September 30, 2024.
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.