1 unchanged sentence
We are exposed to financial risk resulting from volatility in foreign exchange rates, interest rates and commodity prices.
−Removed: This risk is closely monitored and managed through the use of physical forward contracts (which are not considered derivatives) and financial derivative instruments including foreign currency forward contracts, commodity swap contracts and interest rate swaps and locks.
+Added: This risk is closely monitored and managed through the use of physical forward contracts (which are not considered derivatives) and financial derivative instruments including foreign currency forward contracts, commodity swap contracts and interest rate swaps.
Financial derivatives are used expressly for hedging purposes and under no circumstances are they used for speculative purposes.
21 unchanged sentences
In order to minimize movements in certain investments, in 2022 we began entering into foreign exchange forwards designated as net investment hedges.
−Removed: Under the terms of our foreign exchange forwards, we agreed with third parties to sell British pounds in exchange for U.S.
+Added: Under the terms of our foreign exchange forwards, we agreed with third parties to sell British pounds, Chinese renminbi and Euros in exchange for U.S.
dollar currency at a specified rate at the maturity of the contract.
−Removed: These forwards are utilized to hedge portions of our net investments denominated in the British pound against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S.
+Added: These forwards are utilized to hedge portions of our net investments denominated in these currencies against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S.
The change in fair value related to the spot-to-forward rate difference is recorded as other income (expense) with all other changes in fair value deferred and reported as components of AOCL.
27 unchanged sentences
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.