6 unchanged sentences
Interest Rate Risk
−Removed: 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 the majority of our variable-rate debt is based on this index;
−Removed: 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.
−Removed: We use interest rate swaps in order to maintain an appropriate level of exposure to interest rate variability.
−Removed: 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.
−Removed: We elected to designate these interest rate swaps as cash flow hedges for accounting purposes.
−Removed: 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:
+Added: We are exposed to interest rate risk on our variable-rate indebtedness.
+Added: Our primary sensitivity in 2022 was to changes in one-month LIBOR, as the interest rate on our Term Loan, which represents the majority of our variable-rate indebtedness, was based on this benchmark rate until we amended the credit agreement that governs our Term Loan in December 2022 to adjust our LIBOR-based variable rate to a SOFR-based variable rate.
+Added: We use an interest rate swap in order to maintain what we believe to be an appropriate level of exposure to interest rate variability.
+Added: As of December 31, 2022, we held an interest rate swap for a portion of the Term Loan, for which we executed an amendment concurrent with the amendment for our Term Loan, through which we receive one-month term SOFR and pay a fixed rate.
+Added: We elected to designate this interest rate swap as a cash flow hedge for accounting purposes and applied the practical expedient as prescribed in ASU No.
+Added: 2020-04, Reference Rate Reform (Topic 848):
+Added: Facilitation of the Effects of Reference Rate Reform on Financial Reporting that allowed us to maintain hedge accounting with the transition to SOFR.
+Added: The following table sets forth the current carrying values of our contractual maturities, total fair values and interest rates as of December 31, 2022 for our financial instruments that are materially affected by interest rate risk, including long-term debt and our interest rate swap:
Maturities by Period
7 unchanged sentences
$ — $ — $ — $ 2,619 $ — $ — $ 2,619 $ 2,616
−Removed: Weighted average variable interest rate (3)
+Added: Variable interest rate (2)(3)
Interest rate swap (4) :
3 unchanged sentences
Fixed interest rate payable
−Removed: (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.
−Removed: (2) Carrying value includes unamortized deferred financing costs and discount.
−Removed: (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.
−Removed: (4) Excludes debt of a consolidated VIE with a carrying value of $4 million as of December 31, 2021.
+Added: (1) The carrying values exclude the deduction for unamortized deferred financing costs and any applicable discounts, as well as all finance lease liabilities and other debt of consolidated VIEs totaling $164 million and $37 million, respectively, as of December 31, 2022.
+Added: (2) The fixed interest rate is the weighted average of actual rates, and the variable interest rate is based on the market rate prevailing as of December 31, 2022.
+Added: (3) The variable interest rate receivable on the interest rate swap does not include fixed components of the overall variable interest rate, including applicable spreads.
(4) The carrying value reflects the notional amount and the variable interest rate receivable is based on the market rate prevailing as of December 31, 2022.
−Removed: We measure our derivative instruments at fair value and, as of December 31, 2021, this interest rate swap was in a liability position.
−Removed: 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.
−Removed: These interest rate swaps were included in other long-term liabilities in our consolidated balance sheets.
+Added: We measure our derivative instruments at fair value and, as of December 31, 2022, our interest rate swap was in an asset position.
Refer to Note 10:
−Removed: "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.
+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 swap.
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, as well as revenues and expenses from our international owned and leased hotels.
+Added: Our principal exposure results from management and franchise fees earned in foreign currencies, as well as revenues and expenses from our international leased hotels.
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.
−Removed: 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.
−Removed: As of December 31, 2021, our largest net exposures were to AUD and EUR.
+Added: We also have exposure from our international financial assets and liabilities, including certain intercompany financing arrangements
+Added: not deemed to be permanently invested, the value of which could change materially in relation to the functional currencies of the exposed entities.
+Added: As of December 31, 2022, our largest net exposures were to GBP and EUR.
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.
2 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.