22 unchanged sentences
The analyses cover all of our foreign currency derivative contracts offset by underlying exposures.
−Removed: The foreign currency exchange rates we used in performing the sensitivity analysis were based on market rates in effect at October 31, 2022 and 2021.
+Added: The foreign currency exchange rates we used in performing the sensitivity analysis were based on market rates in effect at October 31, 2023 and 2022, respectively.
The sensitivity analyses indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would result in a foreign exchange fair value loss of $48 million and $49 million at October 31, 2023 and 2022, respectively.
Interest rate risk
−Removed: We also are exposed to interest rate risk related to debt we have issued, our investment portfolio and financing receivables.
+Added: We also are exposed to interest rate risk related to debt we have issued, our debt investment portfolio and net portfolio assets of our Financial Services segment.
We issue long-term debt in either U.S.
4 unchanged sentences
However, in circumstances where we believe additional fixed-rate debt would be beneficial, we may choose to terminate a previously executed swap, or swap certain floating interest payments to fixed.
−Removed: In order to hedge the fair value of certain fixed-rate investments, we may enter into interest rate swaps that convert fixed interest returns into variable interest returns.
−Removed: We may use cash flow hedges to hedge the variability of interest income received on certain variable-rate investments, by entering into interest rate swaps that convert variable rate interest returns into fixed-rate interest returns.
We have performed sensitivity analyses as of October 31, 2023 and 2022, using a modeling technique that measures the change in the fair values arising from a hypothetical 10% adverse movement in the levels of interest rates across the entire yield curve, with all other variables held constant.
−Removed: The analyses cover our debt, investments, financing receivables, and interest rate swaps.
−Removed: The analyses use actual or approximate maturities for the debt, investments, financing receivables, and interest rate swaps.
−Removed: The discount rates used were based on the market interest rates in effect at October 31, 2022 and 2021.
−Removed: The sensitivity analyses indicated that a hypothetical 10% adverse movement in interest rates would result in a loss in the fair values of our debt, investments and financing receivables, net of interest rate swaps, of $32 million and $58 million at October 31, 2022 and 2021, respectively.
+Added: The analyses cover our debt, debt investments, net portfolio assets, and interest rate swaps.
+Added: The analyses use actual or approximate maturities for the debt, debt investments, net portfolio assets, and interest rate swaps.
+Added: The discount rates used were based on the market interest rates in effect at October 31, 2023 and 2022, respectively.
+Added: The sensitivity analyses indicated that a hypothetical 10% adverse movement in interest rates would result in a loss in the fair values of our debt, debt investments and net portfolio assets, net of interest rate swaps, of $41 million and $32 million at October 31, 2023 and 2022, respectively.
+Added: For more information about our debt, use of derivative instruments, forward contracts and investments, Refer to Note 1, “Overview and Summary of Significant Accounting Policies”, Note 13, Financial Instruments”, and Note 14, “Borrowings”, of the Notes to the Consolidated Financial Statements section included in this report.
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.