QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We are exposed to market risks that may result from changes in foreign currency exchange rates, interest rates and credit and equity prices.
+Added: We are exposed to market risks that may result from changes in foreign currency exchange rates, interest rates and equity prices.
To reduce certain of these risks, we enter into various types of foreign currency derivative hedging transactions, follow investment guidelines and monitor outstanding receivables as part of our risk management program.
−Removed: We may also enter into other transactions, such as interest rate derivative hedges, as needed.
Foreign Currency Exchange Rate Risk
17 unchanged sentences
The analysis does not consider the impact that hypothetical changes in foreign currency exchange rates would have on anticipated transactions that these foreign currency sensitive instruments were designed to offset.
−Removed: Interest Rate and Credit Risk
−Removed: Our portfolio of available-for-sale debt securities and our long-term borrowings are exposed to interest rate and credit risk.
−Removed: With respect to our investment portfolio, we adhere to an investment policy that requires us to limit amounts invested in securities based on credit rating, maturity, industry group and investment type and issuer, except for securities issued by the U.S.
+Added: Interest Rate Risk
+Added: We occasionally invest in available-for-sale debt securities, adhering to a policy that requires us to limit invested amounts based on credit rating, maturity, industry group and investment type and issuer, except for securities issued by the U.S.
The goals of our investment policy, in order of priority, are as follows:
2 unchanged sentences
• a competitive after-tax rate of return.
−Removed: The fair value of our available-for-sale debt securities is subject to change as a result of potential changes in market interest rates.
−Removed: The fair value of our portfolio of available-for-sale debt securities would not be significantly affected by either a 10% increase or decrease in interest rates primarily due to the short-term nature of the portfolio.
−Removed: We do not believe that the future market risks related to our securities will have a material adverse impact on our financial position, results of operations, or liquidity.
+Added: The fair value of any available-for-sale debt securities is subject to change as a result of potential changes in market interest rates.
+Added: However, primarily due to the typically short-term nature of our portfolio, we do not believe that future market risks, including a hypothetical 10% increase or decrease in interest rates related to any securities, would have a material adverse impact on our financial position, results of operations, or liquidity.
Our senior unsecured notes have fixed interest rates.
6 unchanged sentences
Additionally, we have a $2.5 billion five-year revolving credit facility that matures in June 2029.
−Removed: Loans under our revolving credit facility bear interest at either (i) the Term Secured Overnight Financing Rate plus the Applicable Percentage, or (ii) the Base Rate plus the Applicable Percentage, each as defined in the revolving credit facility agreement.
+Added: Loans under our revolving credit facility bear interest at either (i) Term Secured Overnight Financing Rate plus the Applicable Percentage, (ii) the Alternative Currency Term Rate plus the Applicable Percentage, or (iii) the Base Rate plus the Applicable Percentage, each as defined in the revolving credit facility agreement.
There were no amounts outstanding under the revolving credit facility as of December 31, 2024.
7 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.