QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: The Company is exposed to various forms of market risk as a part of its ongoing business practices.
−Removed: The Company utilizes derivative instruments to mitigate earnings fluctuations due to market volatility.
+Added: The Company is exposed to various forms of market risk as a part of its ongoing business practices including commodity price risk, interest rate risk, foreign currency exchange rate risk, and investment risk, among others.
Commodity Price Risk:
−Removed: The Company is subject to commodity price risk primarily through grain, lean hog, and natural gas markets.
+Added: The Company is subject to commodity price risk through grain, lean hog, natural gas, and diesel fuel markets.
To reduce these exposures and offset the fluctuations caused by changes in market conditions, the Company employs hedging programs.
10 unchanged sentences
Foreign Currency Exchange Rate Risk:
−Removed: The fair values of certain assets are subject to fluctuations in foreign currency exchange rates.
−Removed: The Company's net asset position in foreign currencies as of October 29, 2023, was $1.1 billion, compared to $652.4 million as of October 30, 2022, with most of the exposure existing in Indonesian rupiah, Chinese yuan, and Brazilian real.
+Added: The fair values of certain of the Company’s assets are subject to fluctuations in foreign currency exchange rates.
+Added: The Company’s net asset position in foreign currencies as of October 27, 2024, was $1.2 billion, compared to $1.1 billion as of October 29, 2023, with most of the exposure existing in Chinese yuan, Indonesian rupiah and Brazilian real.
The Company currently does not use market risk sensitive instruments to manage this risk.
1 unchanged sentence
The Company has corporate-owned life insurance policies classified as trading securities as part of a rabbi trust to fund certain supplemental executive retirement plans and deferred income plans.
−Removed: As of October 29, 2023, the balance of
−Removed: these securities totaled $188.2 million compared to $186.2 million as of October 30, 2022.
+Added: As of October 27, 2024, the balance of these securities totaled $209.7 million compared to $188.2 million as of October 29, 2023.
The rabbi trust is invested primarily in fixed income funds.
The Company is subject to market risk due to fluctuations in the value of the remaining investments as unrealized gains and losses associated with these securities are included in the Company’s net earnings on a mark-to-market basis.
−Removed: A 10 percent decline in the value of the investments not held in fixed income funds would have negatively impacted the Company’s pretax earnings by approximately $7.8 million, while a 10 percent increase in value would have a positive impact of the same amount.
+Added: A 10 percent decline in the value of the investments not held in fixed income funds would have negatively impacted the Company’s pre-tax earnings by approximately $10.0 million, while a 10 percent increase in value would have a positive impact of the same amount.
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.