1 unchanged sentence
We are exposed to market risks arising from changes in market rates and prices, including movements in foreign currency exchange rates, interest rates and commodity prices.
−Removed: From time to time, we may enter into derivatives or other financial instruments to hedge or mitigate commercial risks.
+Added: We regularly enter into derivatives or other financial instruments to hedge or mitigate commercial risks.
We do not enter into derivative instruments for speculation, investing or trading.
4 unchanged sentences
Our primary exposure to foreign exchange rates is the Canadian dollar, the Mexican peso and the Euro against the U.S.
−Removed: Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses in our income statement as incurred.
−Removed: As of December 31, 2021, the impact to our income from operations of a 10% swing (up or down) in exchange rates is estimated to be an increase or decrease of approximately $48 million on an annual basis.
+Added: Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses in earnings as incurred.
We use derivative instruments such as foreign exchange forward contracts to manage a portion of our exposure to changes in foreign exchange rates.
−Removed: As of December 31, 2021, we had derivative contracts outstanding with notional values of $848 million maturing at various dates through September 25, 2024.
+Added: As of December 31, 2022, we had derivative contracts outstanding with notional values of $1,001 million maturing at various dates through October 2024.
+Added: The fair value of foreign currency derivatives that qualify for hedge accounting resulted in a net unrealized gain of $19 million as of December 31, 2022, and the impact of a 10% change (up or down) in exchange rates is estimated to increase or decrease the fair value by approximately $50 million.
+Added: The fair value of foreign currency derivatives that do not qualify for hedge accounting resulted in a net unrealized gain of $16 million as of December 31, 2022, and the impact of a 10% change (up or down) in exchange rates is estimated to increase or decrease the fair value by approximately $50 million.
+Added: Any increase or decrease in the value of the foreign currency derivatives would have an approximately offsetting change in the underlying hedged risk.
INTEREST RATE RISK
2 unchanged sentences
Additionally, as of December 31, 2022, the total notional value of receive-fixed, pay-variable interest rate swaps was $1,900 million.
−Removed: Our variable-rate instruments are generally based on LIBOR and a credit spread.
−Removed: We estimate that the potential impact to our interest rate expense associated with variable rate debt and derivative instruments resulting from a hypothetical interest rate change of 1%, based on variable-rate debt and derivative instrument levels as of December 31, 2021, would be an increase of approximately $5 million or decrease of approximately $1 million.
−Removed: Our estimate of the annual impact to interest expense reflects our assumption that LIBOR will not fall below 0%.
+Added: Our variable-rate derivative instruments are generally based on SOFR and a credit spread.
+Added: We estimate that the potential impact to our interest rate expense associated with variable rate debt and derivative instruments resulting from a hypothetical interest rate change of 1%, based on variable-rate debt and derivative instrument levels as of December 31, 2022, would be an increase or decrease of approximately $23 million.
+Added: Our estimate of the annual impact to interest expense reflects our assumption that SOFR will not fall below 0%.
COMMODITY RISK
2 unchanged sentences
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: As of December 31, 2021, we had derivative contracts outstanding with a notional value of $529 million maturing at various dates through November 28, 2023.
−Removed: The fair market value of these contracts as of December 31, 2021 was a net asset of $106 million.
+Added: As of December 31, 2022, we had derivative contracts outstanding with a notional value of $754 million maturing at various dates through April 2024.
+Added: The fair market value of these contracts as of December 31, 2022 was a net liability of $45 million.
As of December 31, 2022, 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 $42 million impact to our income from operations for the year ended December 31, 2023.
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.