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 including commodity price risk, interest rate risk, foreign currency exchange rate risk, and investment risk, among others.
+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, investment risk, and concentration of credit risk, among others.
+Added: The Company may use derivative financial and commodity instruments to manage these risks and does not enter into these instruments for trading or speculative purposes.
Commodity Price Risk:
1 unchanged sentence
To reduce these exposures and offset the fluctuations caused by changes in market conditions, the Company employs hedging programs.
−Removed: These programs utilize futures, swaps, and options contracts and are accounted for as cash flow hedges.
+Added: These hedging programs utilize futures, swaps, and options contracts and are accounted for as cash flow hedges.
The fair value of the Company’s cash flow commodity contracts as of October 26, 2025, was $5.5 million compared to $(5.9) million as of October 27, 2024.
The Company measures its market risk exposure on its cash flow commodity contracts using a sensitivity analysis, which considers a hypothetical 10 percent change in the market prices.
−Removed: A 10 percent decrease in the market price would have negatively impacted the fair value of the Company’s cash flow commodity contracts as of October 27, 2024, by $26.7 million, which in turn would lower the Company’s future cost on purchased commodities by a similar amount.
+Added: A 10 percent decrease in the market price would have negatively impacted the fair value of the Company’s cash flow commodity contracts as of October 26, 2025, by $29.3 million, which in turn would have lowered the Company’s future cost on purchased commodities by a similar amount.
Interest Rate Risk :
The Company is subject to interest rate risk primarily from changes in fair value of long-term fixed rate debt.
−Removed: As of October 27, 2024, the Company’s long-term debt had a fair value of $2.5 billion compared to $2.7 billion as of October 29, 2023.
−Removed: The Company measures its market risk exposure of long-term fixed rate debt using a sensitivity analysis, which considers a 10 percent change in interest rates.
+Added: The Company’s long-term debt had a fair value of $2.6 billion as of October 26, 2025, compared to $2.5 billion as of October 27, 2024.
+Added: The Company measures its market risk exposure of long-term fixed rate debt using a sensitivity analysis, which considers a hypothetical 10 percent change in interest rates.
A 10 percent decrease in interest rates would have positively impacted the fair value of the Company’s long-term debt as of October 26, 2025, by $62.2 million.
1 unchanged sentence
Foreign Currency Exchange Rate Risk:
−Removed: The fair values of certain of the Company’s assets are subject to fluctuations in foreign currency exchange rates.
−Removed: 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.
−Removed: The Company currently does not use market risk sensitive instruments to manage this risk.
+Added: The fair values of certain Company assets and liabilities are subject to fluctuations in foreign currency exchange rates.
+Added: The Company’s net asset position in foreign currencies was $0.8 billion as of October 26, 2025, and $1.2 billion as of October 27, 2024, with most of the exposure existing in Chinese yuan, Indonesian rupiah, and Philippine peso.
+Added: The Company does not use market risk sensitive instruments to manage this risk.
Investment Risk:
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 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.
−Removed: 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 pre-tax earnings by approximately $10.0 million, while a 10 percent increase in value would have a positive impact of the same amount.
+Added: The Company is subject to market risk due to fluctuations in the value of the remaining investments.
+Added: As of October 26, 2025, the balance of these securities totaled $219.2 million compared to $209.7 million as of October 27, 2024.
+Added: A hypothetical 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 $10.6 million, while a 10 percent increase in value would have a positive impact of the same amount.
+Added: Concentration of Credit Risk:
+Added: The Company is exposed to credit risk from its customers.
+Added: The Company regularly assesses the credit worthiness of its customers.
+Added: As of October 26, 2025, and October 27, 2024, one customer accounted for more than 10 percent of net accounts receivable.
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.