7 unchanged sentences
We are exposed to interest rate risk on our variable-rate debt.
−Removed: Our primary sensitivity is 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 the majority of our variable-rate debt is based on this index;
+Added: however, we intend to adjust our LIBOR-based variable rates, as permitted under the relevant debt agreements, by the effective date of the LIBOR transition, which is in 2023.
We use interest rate swaps in order to maintain an appropriate level of exposure to interest rate variability.
−Removed: As of December 31, 2020, we held interest rate swaps through which we receive one-month LIBOR and pay a fixed rate on a portion of the Term Loans.
+Added: As of December 31, 2021, we held interest rate swaps for a portion of the Term Loan through which we receive one-month LIBOR and pay a fixed rate.
We elected to designate these interest rate swaps as cash flow hedges for accounting purposes.
−Removed: The following table sets forth the contractual maturities and the total fair values as of December 31, 2020 for our financial instruments that are materially affected by interest rate risk, including long-term debt and an interest rate swap.
−Removed: For long-term debt, the table presents contractual maturities and related weighted average interest rates.
−Removed: For the interest rate swap, the table presents the notional amount and weighted average interest rate by contractual maturity date.
−Removed: Fixed rates are the weighted average actual rates, and variable rates are the weighted average market rates prevailing as of December 31, 2020:
+Added: The following table sets forth the current carrying value of our contractual maturities, total fair values and interest rates as of December 31, 2021 for our financial instruments that are materially affected by interest rate risk, including long-term debt and our active interest rate swap:
Maturities by Period
4 unchanged sentences
$ — $ — $ — $ 495 $ — $ 5,435 $ 5,930 $ 6,180
−Removed: Weighted average interest rate 4.74 %
+Added: Weighted average fixed interest rate (3)
Variable-rate long-term debt (2)(4)
$ — $ — $ — $ — $ 2,602 $ — $ 2,602 $ 2,599
−Removed: Weighted average interest rate 1.61 %
+Added: Weighted average variable interest rate (3)
Interest rate swap (5) :
3 unchanged sentences
Fixed interest rate payable
−Removed: (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.
+Added: (1) Excludes finance lease liabilities with carrying values totaling $208 million and other debt of consolidated VIEs with carrying values totaling $22 million as of December 31, 2021.
(2) Carrying value includes unamortized deferred financing costs and discount.
−Removed: (3) The carrying value reflects the notional amount.
+Added: (3) The fixed interest rate is the weighted average of actual rates, and the variable interest rate is the weighted average using the market rate prevailing as of December 31, 2021.
+Added: (4) Excludes debt of a consolidated VIE with a carrying value of $4 million as of December 31, 2021.
+Added: (5) The carrying value reflects the notional amount, and the variable interest rate receivable is based on the market rate prevailing as of December 31, 2021.
We measure our derivative instruments at fair value and, as of December 31, 2021, this interest rate swap was in a liability position.
−Removed: (4) Excludes an interest rate swap agreement with a notional amount of $1.6 billion, which swaps one-month LIBOR on the Term Loans to a fixed rate of 3.03 percent, with a term for the period from March 2022 to March 2023.
−Removed: The interest rate swap had a liability fair value of $45 million as of December 31, 2020.
−Removed: (5) Represents the interest rate receivable.
−Removed: (6) Represents the interest rate payable.
+Added: Information excludes an interest rate swap with a notional amount of $1.6 billion, which swaps one-month LIBOR on a portion of the Term Loan to a fixed rate of 1.83 percent, with a term from March 2022 to March 2026, that had a liability fair value of $34 million as of December 31, 2021.
+Added: These interest rate swaps were included in other long-term liabilities in our consolidated balance sheets.
Refer to Note 11:
−Removed: "Fair Value Measurements" in our consolidated financial statements for additional information on the fair value measurements of our derivatives and financial assets and liabilities.
+Added: "Fair Value Measurements" in our consolidated financial statements for additional information on the fair value measurements of our long-term debt and interest rate swaps.
Foreign Currency Exchange Rate Risk
We conduct business in various currencies and are exposed to earnings and cash flow volatility associated with changes in foreign currency exchange rates.
−Removed: Our principal exposure results from management and franchise fees earned in foreign currencies and revenues from our international leased hotels, partially offset by foreign operating expenses.
−Removed: The value of these revenues and expenses could change materially in reference to the functional currencies of the exposed entities and to our reporting currency, USD.
−Removed: We also have exposure from our international financial assets and liabilities, including certain
−Removed: intercompany loans not deemed to be permanently invested, the value of which could change materially in reference to the functional currencies of the exposed entities.
+Added: Our principal exposure results from management and franchise fees earned in foreign currencies, as well as revenues and expenses from our international owned and leased hotels.
+Added: The value of these revenues and expenses could change materially in relation to the functional currencies of the exposed entities and to our reporting currency, USD.
+Added: We also have exposure from our international financial assets and liabilities, including certain intercompany loans not deemed to be permanently invested, the value of which could change materially in relation to the functional currencies of the exposed entities.
As of December 31, 2021, our largest net exposures were to AUD and EUR.
−Removed: We use forward contracts designated as cash flow hedges to offset exposure from foreign currency exchange rate risks associated with our management and franchise fees denominated in certain foreign currencies.
+Added: We use forward contracts designated as cash flow hedges to offset exposure from foreign currency exchange rate risks associated with certain of our management, franchise and other fees denominated in certain foreign currencies.
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 .
1 unchanged sentence
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.