Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are exposed to market risk primarily from changes in interest rates and foreign currency exchange rates, which may affect future income, cash flows and the fair value of the Company, depending on changes to interest rates or foreign currency exchange rates.
−Removed: In certain situations, we may seek to reduce cash flow volatility associated with changes in interest rates and foreign currency exchange rates by entering into derivative financial instruments intended to provide a hedge against a portion of the risks associated with such volatility.
+Added: We are exposed to market risk primarily from changes in interest rates and foreign currency exchange rates.
+Added: These rate changes may affect future income, cash flows and the fair value of the Company, its assets and its liabilities.
+Added: In certain situations, we may seek to reduce volatility associated with changes in interest rates and foreign currency exchange rates by entering into derivative financial instruments intended to provide a hedge against a portion of the risks associated with such volatility.
We continue to have exposure to such risks to the extent they are not hedged.
−Removed: We enter into derivative financial instruments to the extent they meet the objectives described above, and we do not use derivatives for trading or speculative purposes.
+Added: We enter into derivative financial instruments to the extent they meet the objectives described above, and we do not use derivatives for speculative purposes.
Interest Rate Risk
We are exposed to interest rate risk on our variable-rate debt.
−Removed: We are most vulnerable to changes in one-month LIBOR, as the interest rate on our variable-rate debt is based on this index.
+Added: Our primary sensitivity is to changes in one-month LIBOR, as the interest rate on our variable-rate debt is based on this index.
We use interest rate swaps in order to maintain an appropriate level of exposure to interest rate variability.
7 unchanged sentences
2021 2022 2023 2024 2025 Thereafter Carrying Value Fair Value
−Removed: (in millions, excluding interest rates)
+Added: (dollars in millions)
Long-term debt:
8 unchanged sentences
$ — $ 1,600 $ — $ — $ — $ — $ 1,600 $ 37
−Removed: Variable interest rate payable (5)
−Removed: Fixed interest rate receivable (6)
−Removed: (1) Excludes finance lease liabilities with a carrying value of $245 million and debt of consolidated VIEs with a carrying value of $17 million as of December 31, 2019.
+Added: Variable interest rate receivable (5)
+Added: Fixed interest rate payable (6)
+Added: (1) Excludes finance lease liabilities with a carrying value of $252 million and other debt of consolidated VIEs with a carrying value of $19 million as of December 31, 2020.
(2) Carrying value includes unamortized deferred financing costs and discount.
−Removed: (3) The carrying value balance reflects the notional amount.
+Added: (3) The carrying value reflects the notional amount.
We measure our derivative instruments at fair value and, as of December 31, 2020, this interest rate swap was in a liability position.
1 unchanged sentence
The interest rate swap had a liability fair value of $45 million as of December 31, 2020.
−Removed: (5) Represents the estimated interest rate payable.
−Removed: (6) Represents the estimated interest rate receivable.
+Added: (5) Represents the interest rate receivable.
+Added: (6) Represents the interest rate payable.
Refer to Note 11:
9 unchanged sentences
We use forward contracts not designated as hedging instruments to offset exposure to foreign currency exchange rate fluctuations in certain cash and intercompany loan balances .
−Removed: We do not consider the fair value of earnings effect of these forward contracts to be material to our consolidated financial statements.
+Added: We do not consider the fair value or earnings effect of these forward contracts to be material to our consolidated financial statements.
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.