1 unchanged sentence
Interest Rate Risk
−Removed: The total amount of short-term debt, net of cash, amounted to net debt of $854.2 million and net debt of $317.9 million, at June 30, 2024 and December 31, 2023, respectively.
−Removed: A hypothetical 100 basis point increase in interest rates applied to this variable-rate short-term debt as of June 30, 2024 would have changed interest expense by approximately $4.1 million for the first six months of 2024 and $3.1 million for 2023.
+Added: The total amount of short-term debt, net of cash, amounted to net debt of $581.5 million and net debt of $317.9 million, at September 29, 2024 and December 31, 2023, respectively.
+Added: A hypothetical 100 basis point increase in interest rates applied to this variable-rate short-term debt as of September 29, 2024 would have changed interest expense by approximately $5.5 million for the first nine months of 2024 and $3.1 million for 2023.
We consider our current risk related to market fluctuations in interest rates on our remaining debt portfolio, excluding fixed-rate debt converted to variable rates with fixed-to-floating instruments, to be minimal since this debt is largely long-term and fixed-rate in nature.
Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise.
−Removed: A 100 basis point increase in market interest rates would decrease the fair value of our fixed-rate long-term debt at June 30, 2024 and December 31, 2023 by approximately $169 million and $203 million, respectively.
−Removed: However, since we currently have no plans to repurchase our outstanding fixed-rate instruments
−Removed: The Hershey Company | Q2 2024 Form 10-Q | Page 44
−Removed: before their maturities, the impact of market interest rate fluctuations on our long-term debt does not affect our results of operations or financial position.
+Added: A 100 basis point increase in market interest rates would decrease the fair value of our fixed-rate long-term debt at September 29, 2024 and December 31, 2023 by approximately $196 million and $203 million, respectively.
+Added: However, since we currently have no plans to repurchase our outstanding fixed-rate instruments before their maturities, the impact of market interest rate fluctuations on our long-term debt does not affect our results of operations or financial position.
Foreign Currency Exchange Rate Risk
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We estimate the fair value of foreign currency forward exchange contracts on a quarterly basis by obtaining market quotes of spot and forward rates for contracts with similar terms, adjusted where necessary for maturity differences.
−Removed: The potential decline in fair value of foreign currency forward exchange contracts resulting from a hypothetical near-term adverse change in market rates of 10% was $11.6 million as of June 30, 2024 and $20.2 million as of December 31, 2023, generally offset by a reduction in foreign exchange associated with our transactional activities.
+Added: The potential decline in fair value of foreign currency forward exchange contracts resulting from a hypothetical near-term adverse change in market rates of 10% was $32.1 million as of September 29, 2024 and $20.2 million as of December 31, 2023, generally offset by a reduction in foreign exchange associated with our transactional activities.
Commodities—Price Risk Management and Derivative Contracts
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Significant changes impacting our commodity price risk management since our 2023 Annual Report on Form 10-K are described below.
+Added: The Hershey Company | Q3 2024 Form 10-Q | Page 46
Cocoa Products
−Removed: During the first six months of 2024, the average cocoa futures contract price was $3.34 per pound, with a trading range of $1.84 to $5.20 per pound, based on the Intercontinental Exchange futures contract.
+Added: During the first nine months of 2024, the average cocoa futures contract price was $3.32 per pound, with a trading range of $1.84 to $5.20 per pound, based on the Intercontinental Exchange futures contract.
This average cocoa futures contract price represents an increase of approximately 123% compared to the 2023 annual average of $1.49 per pound.
5 unchanged sentences
Commodity Sensitivity Analysis
−Removed: Our open commodity derivative contracts had a notional value of $92.3 million as of June 30, 2024 and $94.9 million as of December 31, 2023.
−Removed: At the end of the second quarter of 2024, the potential change in fair value of commodity derivative instruments, assuming a 10% decrease in the underlying commodity price, would have increased our net unrealized losses by $1.4 million, generally offset by a reduction in the cost of the underlying commodity purchases.
+Added: Our open commodity derivative contracts had a notional value of $149.6 million as of September 29, 2024 and $94.9 million as of December 31, 2023.
+Added: At the end of the third quarter of 2024, the potential change in fair value of commodity derivative instruments, assuming a 10% decrease in the underlying commodity price, would have increased our net unrealized losses by $4.8 million, generally offset by a reduction in the cost of the underlying commodity purchases.
For additional information about our market risks, see Item 7A under Part II of our 2023 Annual Report on Form 10-K.
1 unchanged sentence
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.