1 unchanged sentence
The principal market risks affecting us are exposures to price fluctuations of commodity and energy inputs, interest rates, and foreign currencies.
−Removed: Other than the changes noted below, there have been no material changes in our market risk during the thirteen weeks ended August 29, 2021.
+Added: Other than the changes noted below, there have been no material changes in our market risk during the twenty-six weeks ended November 28, 2021.
For additional information, refer to the "Quantitative and Qualitative Disclosures About Market Risk" section in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended May 30, 2021.
8 unchanged sentences
We may use interest rate swaps to manage the effect of interest rate changes on the fair value of our existing debt as well as the forecasted interest payments for the anticipated issuance of debt.
−Removed: The carrying amount of long-term debt (including current installments) was $8.80 billion as of August 29, 2021.
−Removed: Based on current market rates, the fair value of this debt at August 29, 2021 was estimated at $10.32 billion.
−Removed: As of August 29, 2021, a 1% increase in the interest rates would decrease the fair value of our fixed rate debt by approximately $691.8 million, while a 1% decrease in interest rates would increase the fair value of our fixed rate debt by approximately $791.0 million.
+Added: The carrying amount of long-term debt (including current installments) was $8.80 billion as of November 28, 2021.
+Added: Based on current market rates, the fair value of this debt at November 28, 2021 was estimated at $10.19 billion.
+Added: As of November 28, 2021, a 1% increase in the interest rates would decrease the fair value of our fixed rate debt by approximately $666.8 million, while a 1% decrease in interest rates would increase the fair value of our fixed rate debt by approximately $762.2 million.
Foreign Currency Risk
1 unchanged sentence
This activity primarily relates to economically hedging against foreign currency risk in purchasing inventory and capital equipment, sales of finished goods, and future settlement of foreign denominated assets and liabilities.
−Removed: Value-at-Risk (VaR)
−Removed: We employ various tools to monitor our derivative risk, including value-at-risk ("VaR") models.
−Removed: We perform simulations using historical data to estimate potential losses in the fair value of current derivative positions.
−Removed: We use price and volatility information for the prior 90 days in the calculation of VaR that is used to monitor our daily risk.
−Removed: The purpose of this measurement is to provide a single view of the potential risk of loss associated with derivative positions at a given point in time based on recent changes in market prices.
−Removed: Our model uses a 95% confidence level.
−Removed: Accordingly, in any given one-day time period, losses greater than the amounts included in the table below are expected to occur only 5% of the time.
−Removed: We include commodity swaps, futures, and options and foreign exchange forwards, swaps, and options in this calculation.
−Removed: The following table provides an overview of our average daily VaR for our energy, agriculture, and foreign exchange positions during the thirteen weeks ended August 29, 2021 and August 30, 2020.
+Added: Effect of Hypothetical 10% Fluctuation
+Added: We changed the disclosure alternative for reporting our commodity and foreign exchange derivatives (inclusive of commodity and foreign exchange swaps, futures, forwards, and options) in the second quarter of fiscal 2022 from a value-at-risk ("VaR") model to a hypothetical sensitivity analysis.
+Added: The change in the methodology was made to simplify and enhance the information presented about the sensitivities of our derivative positions.
+Added: The potential gain or loss on the fair value of our outstanding commodity and foreign exchange contracts, assuming a hypothetical 10% fluctuation in commodity prices and foreign currency exchange rates, would have been (in millions):
Fair Value Impact
−Removed: During Thirteen Weeks
−Removed: Ended August 29, 2021
−Removed: During Thirteen Weeks
−Removed: Ended August 30, 2020
+Added: November 28, 2021
+Added: November 29, 2020
Energy commodities
1 unchanged sentence
Foreign exchange
+Added: It should be noted that any change in the fair value of our derivative contracts, real or hypothetical, would be significantly offset by an inverse change in the value of the underlying hedged items.
+Added: In relation to foreign currency contracts, this hypothetical calculation assumes that each exchange rate would change in the same direction relative to the U.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.