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.
+Added: We are exposed to market risk primarily from changes in the one-month Secured Overnight Financing Rate ("SOFR"), the benchmark rate for which the interest rate of the majority of our variable-rate indebtedness is based on, and foreign currency exchange rates.
These rate changes may affect future income, cash flows and the fair value of the Company, its assets and its liabilities.
4 unchanged sentences
We are exposed to interest rate risk on our variable-rate indebtedness.
−Removed: Our primary sensitivity in 2023 was to changes in one-month Secured Overnight Financing Rate ("SOFR"), as the interest rates on our Term Loans, which represent the majority of our variable-rate indebtedness, were based on this benchmark rate.
+Added: Our primary sensitivity in 2024 was to changes in one-month SOFR, as the interest rates on our Term Loans, which represent the majority of our variable-rate indebtedness, were based on this benchmark rate.
We use an interest rate swap in order to maintain what we believe to be an appropriate level of exposure to interest rate variability.
11 unchanged sentences
$ — $ — $ — $ — $ — $ 3,119 $ 3,119 $ 3,140
−Removed: Weighted average variable interest rate (2)(3)
+Added: Variable interest rate (2)(3)
Interest rate swap (4) :
3 unchanged sentences
Fixed interest rate payable
−Removed: (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 $139 million and $9 million, respectively, as of December 31, 2023.
−Removed: (2) The weighted average fixed interest rate is based on actual rates and the weighted average variable interest rate is based on the market rate that was applicable as of December 31, 2023.
−Removed: (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.
+Added: (1) The carrying values exclude the deduction for unamortized deferred financing costs and any applicable discounts, as well as all finance lease liabilities totaling $117 million as of December 31, 2024.
+Added: (2) The weighted average fixed interest rate is the weighted average of the actual rates and the variable interest rate is based on the market rate that was applicable as of December 31, 2024.
+Added: (3) The variable interest rate receivable on the interest rate swap excludes the fixed component of the variable interest rate on the long-term debt.
(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, 2024.
7 unchanged sentences
We also have exposure from our international financial assets and liabilities, including certain intercompany financing arrangements not deemed to be permanently invested, the value of which could change materially in relation to the functional currencies of the exposed entities.
−Removed: 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.
−Removed: 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 or earnings effect of these forward contracts to be material to our consolidated financial statements.
+Added: We use foreign currency 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.
+Added: We use foreign currency forward contracts not designated as hedging instruments to offset exposure to foreign currency exchange rate fluctuations in certain cash and intercompany loan balances .
+Added: We do not consider the fair value or earnings effect of these foreign currency 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.