3 unchanged sentences
We do not enter into derivative instruments for speculation, investing or trading.
+Added: Refer to Note 8 of the Notes to our Consolidated Financial Statements for further information about our derivative instruments.
FOREIGN EXCHANGE RISK
1 unchanged sentence
However, we have exposure with respect to foreign exchange rate fluctuations.
−Removed: Our primary exposure to foreign exchange rates is the Canadian dollar and Mexican peso against the U.S.
+Added: Our primary exposure to foreign exchange rates is the Canadian dollar, the Mexican peso and the Euro against the U.S.
Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses in our income statement as incurred.
4 unchanged sentences
We centrally manage our debt portfolio through the use of interest rate swaps and monitor our mix of fixed-rate and variable-rate debt.
−Removed: As of December 31, 2019 , the carrying value of our fixed-rate debt, excluding capital lease obligations, was $11,802 million and our variable-rate debt was $2,618 million , inclusive of commercial paper.
−Removed: Additionally, as of December 31, 2019 , the total notional value of receive-fixed, pay-variable interest rate swaps was $50 million and the total notional value of receive-variable, pay-fixed interest rate swaps was $575 million .
−Removed: The following table is an estimate of the impact to our interest expense based upon our variable rate debt and derivative instruments and the fair value of the interest rate swaps that could result from hypothetical interest rate changes during the term of the financial instruments, based on debt levels as of December 31, 2019 :
−Removed: Hypothetical Change in Interest Rates (1)
−Removed: Annual Impact to Interest Expense
−Removed: 1-percent decrease
−Removed: $21 million decrease
−Removed: 1-percent increase
−Removed: $21 million increase
−Removed: We pay an average floating rate, which fluctuates periodically, based on LIBOR and a credit spread, as a result of certain derivative instruments and variable rate debt instruments.
−Removed: See Notes 9 and 10 of the Notes to our Consolidated Financial Statements for further information.
−Removed: Commodity Risks
+Added: As of December 31, 2020, the carrying value of our fixed-rate debt, excluding lease obligations, was $13,065 million and our variable-rate debt was $423 million, inclusive of commercial paper.
+Added: As of December 31, 2020, the total notional value of our receive-variable, pay-fixed interest rate swaps was $450 million.
+Added: Based upon our variable rate debt and the fair value of the interest rate swaps that could result from hypothetical interest rate changes during the term of the financial instruments, there was no interest rate risk associated with our debt balances based on debt levels as of December 31, 2020.
+Added: COMMODITY RISK
We are subject to market risks with respect to commodities because our ability to recover increased costs through higher pricing may be limited by the competitive environment in which we operate.
1 unchanged sentence
We utilize commodities derivative instruments and supplier pricing agreements to hedge the risk of movements in commodity prices for limited time periods for certain commodities.
−Removed: The fair market value of these contracts as of December 31, 2019 was a net liability of $20 million .
+Added: As of December 31, 2020, we had derivative contracts outstanding with a notional value of $450 million maturing at various dates through January 1, 2024.
+Added: The fair market value of these contracts as of December 31, 2020 was a net asset of $50 million.
As of December 31, 2020, the impact of a 10% change (up or down) in market prices for these commodities where the risk of movements has not been hedged is estimated to have a $15 million impact to our income from operations for the year ended December 31, 2021.
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.