What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-07-24 compared with 2025-04-24 · 137 added, 57 removed, 142 unchanged (58% of the section changed)

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The following discussion should be read in conjunction with our audited consolidated financial statements and notes thereto in our Annual Report.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, including, in particular, statements about the impact of future events, future financial performance, plans, strategies, business combinations, expectations, prospects, competitive environment, regulation, labor matters, supply chain issues, tariffs or trade wars, inflation, and availability of raw materials.

Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as “outlook,” “guidance,” “anticipate,” “expect,” “believe,” “could,” “estimate,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “target,” “will,” “would,” and similar words, phrases, or expressions and variations or negatives of these words in this Quarterly Report on Form 10-Q.

We have based these forward-looking statements on our current views with respect to future events and financial performance.

Our actual financial performance could differ materially from those projected in the forward-looking statements due to a variety of factors, including the inherent uncertainty of estimates, forecasts, and projections, global economic uncertainty or economic downturns, tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions, as well as the possibility that we are unable to successfully integrate GHOST into our business, and our financial performance may be better or worse than anticipated.

Our actual financial performance could differ materially from those projected in the forward-looking statements due to a variety of factors, including the inherent uncertainty of estimates, forecasts, and projections, global economic uncertainty or economic downturns, tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions and related uncertainty, as well as the possibility that we are unable to successfully integrate GHOST into our business, and our financial performance may be better or worse than anticipated.

Given these uncertainties, you should not put undue reliance on any forward-looking statements.

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We have a broad portfolio of iconic beverage brands, including Dr Pepper, Canada Dry, Mott's, A&W, Peñafiel, Snapple, 7UP, Green Mountain Coffee Roasters, GHOST, Clamato, Core Hydration, and The Original Donut Shop, as well as the Keurig brewing system.

We have some of the most recognized beverage brands in North America, with significant consumer awareness levels and long histories that evoke strong emotional connections with consumers.

Our beverage brands are some of the most recognized in North America, with significant consumer awareness levels and long histories that evoke strong emotional connections with consumers.

We offer more than 125 owned, licensed, and partner brands, as well as powerful distribution capabilities.

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RESULTS OF OPERATIONS

Financial Overview - First Quarter of 2025 as compared to First Quarter of 2024

As Reported, in millions (except Diluted EPS)

Key Events During the First Quarter of 2025

Related Party Changes

In February 2025, JAB BevCo B.V., a subsidiary of JAB, sold approximately 87 million shares of our common stock through an underwritten secondary offering.

Upon completion of the offering on February 28, 2025, JAB beneficially owned less than 10% of our outstanding common stock, and the three members of our Board affiliated with JAB resigned.

2025 Revolving Credit Agreement

On March 31, 2025, we entered into the 2025 Revolving Credit Agreement, which replaced our previous revolving credit agreement.

The 2025 Revolving Credit Agreement provides for a $4 billion revolving credit facility, which matures on March 31, 2030.

Second Quarter of 2025 as compared to Second Quarter of 2024

(in millions, except Diluted EPS)

Key Events During the Second Quarter of 2025

Debt Issuance

On May 5, 2025, we completed the issuance of an aggregate principal amount of $2 billion of senior unsecured notes.

The proceeds from the issuance were used for the repayment of outstanding commercial paper borrowings.

Refer to Note 2 of the Notes to our Unaudited Consolidated Financial Statements for further information.

First Quarter of 2025 Compared to First Quarter of 2024

Second Quarter of 2025 Compared to Second Quarter of 2024

Consolidated Operations

First Quarter Percentage Change

Second Quarter Percentage Change

($ in millions, except per share amounts) 2025 2024

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Selling, general, and administrative expenses 1,356 1,295 4.7

Other operating income, net (8) (1) NM

Other operating expense, net 1 16 NM

Income from operations 898 861 4.3

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Income before provision for income taxes 718 672 6.8

Provision for income taxes 143 140 2.1

Provision for income taxes 171 157 NM

Net income $ 547 $ 515 6.2

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(1) The acquisition of GHOST contributed 4.0 percentage points to our consolidated volume / mix growth in the quarter.

Gross profit increased 2.3% to $1,985 million for the first quarter of 2025.

This performance primarily reflected the gross profit impact of net sales growth (3 percentage points) and favorable changes in unrealized commodity mark-to-market activity (2 percentage points), partially offset by the impact of a smaller earned equity achievement compared to the prior year quarter (2 percentage points).

SG&A expenses increased 1.4% to $1,192 million for the first quarter of 2025, primarily driven by increased transportation and warehousing expenses (4 percentage points) and an unfavorable change in unrealized commodity mark-to-market activity (1 percentage point), partially offset by favorable FX impacts (2 percentage points) and reduced costs associated with productivity projects (1 percentage point).

Income from operations increased 4.7% to $801 million for the first quarter of 2025, primarily driven by increased gross profit.

Interest expense, net decreased 16.9% to $148 million for the first quarter of 2025, primarily driven by a favorable change in unrealized mark-to-market activity (32 percentage points), which was partially offset by increased debt and higher financing costs (13 percentage points).

The effective tax rate decreased 190 bps to 21.7% for the first quarter of 2025, compared to 23.6% in the first quarter of 2024, primarily driven by a non-cash revaluation of state deferred tax liabilities (110 bps) and a shift in the mix of income from higher tax jurisdictions to lower tax jurisdictions (60 bps).

Net income increased 13.9% to $517 million for the first quarter of 2025, driven primarily by increased income from operations and lower interest expense.

Diluted EPS increased 15.2% to $0.38 per diluted share for the first quarter of 2025 as compared to $0.33 in the first quarter of 2024.

Gross profit increased 3.8% to $2,255 million for the second quarter of 2025.

This performance primarily reflected the gross profit impact of net sales growth (6 percentage points), partially offset by the net impact from changes in ingredients, materials, and productivity (3 percentage points).

SG&A expenses increased 4.7% to $1,356 million for the second quarter of 2025, primarily driven by increased transportation and warehousing expenses (4 percentage points) and integration expenses associated with acquisitions (2 percentage points), partially offset by lower marketing expense (2 percentage points).

Other operating expense, net decreased in the second quarter of 2025, primarily reflecting a favorable comparison to losses incurred in 2024 on the disposal of assets related to our Network Optimization program.

Income from operations increased 4.3% to $898 million for the second quarter of 2025, driven by increased gross profit, partially offset by higher SG&A expenses.

Interest expense, net decreased 11.8% to $180 million for the second quarter of 2025, primarily driven by a favorable year-over-year change in unrealized mark-to-market activity (15 percentage points), which was partially offset by increased debt and higher financing costs (4 percentage points).

Other income, net decreased in the second quarter of 2025, primarily reflecting an increase of approximately $29 million in our mandatory redemption liability for GHOST during the quarter, partially offset by net gains on our investments in unconsolidated affiliates.

The effective tax rate increased 40 bps to 23.8% for the second quarter of 2025, compared to 23.4% for the second quarter of 2024, primarily driven by an increase in uncertain tax positions (170 bps) and an unfavorable comparison to a non-cash revaluation of state deferred tax liabilities in the second quarter of 2024 (110 bps), which was fully offset by a shift in the mix of income from higher tax jurisdictions to lower tax jurisdictions (280 bps).

Net income increased 6.2%, to $547 million for the second quarter of 2025, primarily driven by increased income from operations and reduced interest expense.

Diluted EPS increased 5.3% to $0.40 per diluted share for the second quarter of 2025 as compared to $0.38 in the second quarter of 2024.

Results of Operations by Segment

The following tables provide certain results of operations for our reportable segments for the first quarter of 2025 and 2024.

First Quarter Percentage Change

The following tables provide certain results of operations for our reportable segments for the second quarter of 2025 and 2024.

Second Quarter Percentage Change

(in millions) 2025 2024

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Unallocated corporate costs (224) (234) (4.3)

Income from operations $ 898 $ 861 4.3

Operating margin

Refreshment Beverages 28.0 % 29.8 % (180) bps

Coffee 24.6 24.0 60 bps

International 25.8 26.5 (70) bps

Sales Volumes

LRB K-Cup Pods Appliances

Refreshment Beverages 2.0 % — % — %

Coffee NM (3.7) (22.6)

International (2.2) 4.5 4.8

Volume / Mix (1)

Net Price Realization FX Total

Refreshment Beverages 9.5 % 1.0 % — % 10.5 %

Coffee (3.8) 3.6 — (0.2)

International 0.4 5.3 (7.5) (1.8)

(1) The acquisition of GHOST contributed 6.6 percentage points to our volume / mix growth in U.S.

Refreshment Beverages in the quarter.

Refreshment Beverages

Sales volume increased 2.0% in the second quarter of 2025, driven by growth in our energy portfolio, including the acquisition of GHOST, as well as in carbonated soft drinks.

These benefits were partially offset by softness in our still beverages portfolio.

Net sales increased 10.5% to $2,660 million for the second quarter of 2025, led by volume / mix growth, including a benefit from the acquisition of GHOST, as well as higher net price realization.

Income from operations increased 4.0% to $746 million for the second quarter of 2025.

This performance was led by the gross profit impact of net sales growth (17 percentage points), partially offset by increased transportation and warehousing expenses (6 percentage points), a net unfavorable change in ingredients, materials, and productivity (3 percentage points), and integration expenses associated with acquisitions (3 percentage points).

Appliance volume decreased 22.6%, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases.

Net sales decreased 0.2% to $948 million for the second quarter of 2025, as favorable net price realization was fully offset by unfavorable volume / mix.

Income from operations increased 2.2% to $233 million for the second quarter of 2025, reflecting the impacts of favorable net price realization (15 percentage points) and lower marketing expense (7 percentage points), partially offset by a net unfavorable change in ingredients, materials, and productivity (14 percentage points), unfavorable volume / mix (4 percentage points) and increases in other manufacturing costs.

International

LRB sales volume decreased 2.2%, driven by carbonated soft drinks.

Appliance volumes increased 4.8% and K-Cup pod volumes increased 4.5%, reflecting category growth and market share gains in key brands.

Net sales decreased 1.8% to $555 million in the second quarter of 2025, reflecting unfavorable FX translation, partially offset by higher net price realization and volume / mix growth.

Income from operations decreased 4.7%, to $143 million for the second quarter of 2025, as the benefit from the gross profit impact of the higher net price realization and volume / mix growth (17 percentage points) was more than offset by increased transportation and warehousing expenses (8 percentage points), unfavorable FX impacts (7 percentage points), a net unfavorable impact from changes in ingredients, materials, and productivity (1 percentage point), and increases in other manufacturing costs.

First Six Months of 2025 Compared to First Six Months of 2024

Consolidated Operations

First Six Months Percentage Change

($ in millions, except per share amounts) 2025 2024

Net sales $ 7,798 $ 7,390 5.5 %

Cost of sales 3,558 3,278 8.5

Gross profit 4,240 4,112 3.1

Selling, general, and administrative expenses 2,548 2,471 3.1

Other operating (income) expense, net (7) 15 NM

Income from operations 1,699 1,626 4.5

Interest expense, net 328 382 (14.1)

Other income, net (7) (22) NM

Income before provision for income taxes 1,378 1,266 8.8

Provision for income taxes 314 297 NM

Net income $ 1,064 $ 969 9.8

Earnings per common share:

Basic $ 0.78 $ 0.71 9.9 %

Diluted 0.78 0.70 11.4

Gross margin 54.4 % 55.6 % (120) bps

Operating margin 21.8 22.0 (20) bps

Effective tax rate 22.8 23.5 (70) bps

Percentage Change

K-Cup pods (4.3)

Appliances (15.0)

Net Sales Drivers

Percentage Change

Volume / mix (1)

Net price realization 2.5

(1) The acquisition of GHOST contributed 3.5 percentage points to our consolidated volume / mix growth in the first six months of 2025.

Gross profit increased 3.1% to $4,240 million for the first six months of 2025.

This performance primarily reflected the gross profit impact of net sales growth (5 percentage points), partially offset by a net unfavorable impact from changes in ingredients, materials, and productivity (2 percentage points).

SG&A expenses increased 3.1% to $2,548 million for the first six months of 2025, primarily driven by increased transportation and warehousing expenses (4 percentage points), partially offset by lower marketing expense (1 percentage point).

Income from operations increased 4.5% to $1,699 million for the first six months of 2025, primarily driven by increased gross profit, partially offset by higher SG&A expenses.

Interest expense, net decreased 14.1% to $328 million for the first six months of 2025, primarily driven by a favorable change in unrealized mark-to-market activity (22 percentage points), which was partially offset by increased debt and higher financing costs (8 percentage points).

Other income, net decreased in the first six months of 2025, primarily reflecting an increase of approximately $40 million in our mandatory redemption liability for GHOST, partially offset by net gains on our investments in unconsolidated affiliates.

The effective tax rate decreased 70 bps to 22.8% for the first six months of 2025, compared to 23.5% in the first six months of 2024, primarily driven by a shift in the mix of income from higher tax jurisdictions to lower tax jurisdictions (170 bps), which was partially offset by an increase in uncertain tax positions (100 bps).

Net income increased 9.8% to $1,064 million for the first six months of 2025, driven primarily by increased income from operations and lower interest expense.

Diluted EPS increased 11.4% to $0.78 per diluted share for the first six months of 2025 as compared to $0.70 in the first six months of 2024.

Results of Operations by Segment

The following tables provide certain results of operations for our reportable segments for the first six months of 2025 and 2024.

First Six Months Percentage Change

(in millions) 2025 2024

Refreshment Beverages $ 4,983 $ 4,500 10.7 %

Coffee 1,825 1,861 (1.9)

International 990 1,029 (3.8)

Total net sales $ 7,798 $ 7,390 5.5

Income from operations

Refreshment Beverages $ 1,400 $ 1,332 5.1 %

Coffee 435 476 (8.6)

International 233 262 (11.1)

Unallocated corporate costs (369) (444) (16.9)

Total income from operations $ 1,699 $ 1,626 4.5

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Sales Volumes

The following table provides the percentage change in sales volumes compared to the prior year quarter:

LRB K-Cup Pods Appliances

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International 0.5 1.5 (0.4)

The following table provides the percentage change in net sales compared to the prior year period:

Volume / Mix (1)

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Refreshment Beverages

Sales volume increased 1.9% for the first quarter of 2025, driven by growth in carbonated soft drinks and in our energy portfolio, including the acquisition of GHOST.

Sales volume increased 2.0% for the first six months of 2025, driven by growth in our energy portfolio, including the acquisition of GHOST, and in carbonated soft drinks.

These benefits were partially offset by softness in our still beverages portfolio.

Net sales increased 11.0% to $2,323 million for the first quarter of 2025, led by higher net price realization and volume / mix growth, including a benefit from the acquisition of GHOST.

Income from operations increased 6.3% to $654 million for the first quarter of 2025.

This performance was led by the gross profit impact of net sales growth (18 percentage points), partially offset by the impact of a smaller earned equity achievement compared to the prior year quarter (6 percentage points), increased transportation and warehousing expenses (5 percentage points), and higher people costs (3 percentage points).

Appliance volume decreased 8.4% and K-Cup pod volume decreased 6.5%.

These decreases primarily reflected impacts related to retailer inventory management and the timing of price increases.

Net sales decreased 3.7% to $877 million for the first quarter of 2025, driven by unfavorable volume / mix, partially offset by higher net price realization.

Income from operations decreased 18.5% to $202 million for the first quarter of 2025, driven by a net unfavorable impact from changes in ingredients, materials, and productivity (10 percentage points) and the gross profit impact of the net sales decline (12 percentage points).

Net sales increased 10.7% to $4,983 million for the first six months of 2025, led by volume / mix growth, including a benefit from the acquisition of GHOST, as well as higher net price realization.

Income from operations increased 5.1% to $1,400 million for the first six months of 2025.

This performance was led by the gross profit impact of net sales growth (17 percentage points), partially offset by increased transportation and warehousing expenses (6 percentage points), higher labor costs driven by acquisitions (3 percentage points), and the impact of a smaller earned equity achievement in 2025 compared to 2024 (3 percentage points).

Appliance volume decreased 16.6%, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 5.1%, reflecting category elasticity in response to price increases.

Net sales decreased 1.9% to $1,825 million for the first six months of 2025, as higher net price realization was more than offset by unfavorable volume / mix.

Income from operations decreased 8.6% to $435 million for the first six months of 2025, driven by a net unfavorable impact from changes in ingredients, materials, and productivity (13 percentage points), partially offset by lower marketing expense (5 percentage points).

International

LRB sales volume increased 3.9%, driven by growth in carbonated soft drinks and mineral water.

Appliance volumes decreased 6.1% and K-Cup pod volumes decreased 1.5%, primarily reflecting retailer inventory management.

Net sales decreased 6.3% to $435 million in the first quarter of 2025, reflecting unfavorable FX translation, partially offset by higher net price realization and volume / mix growth.

Income from operations decreased 19.6% to $90 million for the first quarter of 2025, as the benefit from the gross profit impact of the higher net price realization and volume/mix growth (23 percentage points) was more than offset by increased transportation and warehousing expenses (13 percentage points), unfavorable FX impacts (10 percentage points), a net unfavorable impact from changes in ingredients, materials, and productivity (6 percentage points), and increases in other manufacturing costs.

LRB sales volume increased 0.5%, primarily driven by growth in carbonated soft drinks.

Appliance volumes decreased 0.4% and K-Cup pod volumes increased 1.5%.

Net sales decreased 3.8% to $990 million in the first six months of 2025, reflecting unfavorable FX translation, partially offset by higher net price realization and volume / mix growth.

Income from operations decreased 11.1% to $233 million for the first six months of 2025, as the benefit from the gross profit impact of the higher net price realization and volume/mix growth (20 percentage points) was more than offset by increased transportation and warehousing expenses (10 percentage points), unfavorable FX impacts (8 percentage points), a net unfavorable impact from changes in ingredients, materials, and productivity (4 percentage points), and increases in other manufacturing costs.

CRITICAL ACCOUNTING ESTIMATES

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Principal Sources of Capital Resources

Our principal sources of liquidity are our existing cash and cash equivalents, cash generated from our operations, and borrowing capacity currently available under our 2025 Revolving Credit Agreement and Term Loan Agreement.

Our principal sources of liquidity are our existing cash and cash equivalents, cash generated from our operations, and borrowing capacity available under our 2025 Revolving Credit Agreement.

Additionally, we have an uncommitted commercial paper program where we can issue unsecured commercial paper notes on a private placement basis.

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Sources of Liquidity - Operations

Net cash provided by operating activities increased $124 million for the first quarter of 2025, as compared to the first quarter of 2024, driven by the favorable comparison in working capital versus the prior year period, partially offset by lower net income adjusted for non-cash items.

Net cash provided by operating activities decreased $102 million for the first six months of 2025, as compared to the first six months of 2024, driven by the unfavorable comparison in working capital versus the prior year period and lower net income adjusted for non-cash items.

Sources of Liquidity - Financing

Refer to Note 2 of the Notes to our Unaudited Consolidated Financial Statements for management's discussion of our financing arrangements.

As of March 31, 2025, we were in compliance with all debt covenants and we have no reason to believe that we will be unable to satisfy these covenants.

As of June 30, 2025, we were in compliance with all debt covenants and we have no reason to believe that we will be unable to satisfy these covenants.

We also have an active shelf registration statement, filed with the SEC on August 19, 2022, which allows us to issue an indeterminate number or amount of common stock, preferred stock, debt securities, and warrants from time to time in one or more offerings at the direction of our Board.

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Regular Quarterly Dividends

We have declared total dividends of $0.23 per share and $0.215 per share for the first quarter of 2025 and 2024, respectively.

We have declared total dividends of $0.46 per share and $0.43 per share for the first six months of 2025 and 2024, respectively.

Repurchases of Common Stock

Our Board authorized a four-year share repurchase program, ending December 31, 2025, of up to $4 billion of our outstanding common stock.

We did not repurchase any common stock during the first quarter of 2025.

As of March 31, 2025, $1,810 million remained available for repurchase under the authorized share repurchase program.

We did not repurchase any common stock during the first six months of 2025.

As of June 30, 2025, $1,810 million remained available for repurchase under the authorized share repurchase program.

Capital Expenditures

Purchases of property, plant, and equipment were $120 million and $158 million for the first quarter of 2025 and 2024, respectively.

Purchases of property, plant, and equipment were $226 million and $273 million for the first six months of 2025 and 2024, respectively.

Capital expenditures, which includes both purchases of property, plant, and equipment and amounts included in accounts payable and accrued expenses, primarily related to investments in manufacturing capabilities, both in the U.S.

and internationally, for the first quarter of 2025 and 2024.

Capital expenditures included in accounts payable and accrued expenses were $176 million and $189 million for the first quarter of 2025 and 2024, respectively, which primarily related to these investments.

and internationally, for the first six months of 2025 and 2024.

Capital expenditures included in accounts payable and accrued expenses were $155 million and $173 million for the first six months of 2025 and 2024, respectively, which primarily related to these investments.

Investments in Unconsolidated Affiliates

From time to time, we expect to invest in beverage startup companies or in brand ownership companies to grow our presence in certain product categories, or enter into various licensing and distribution agreements to expand our product portfolio.

Our investments generally involve acquiring a minority interest in equity securities of a company, in certain cases with a protected path to ownership at our future option.

Our investments may involve acquiring a minority interest in equity securities of a company, in certain cases with a protected path to ownership at our future option.

Acquisitions of Businesses and Purchases of Intangible Assets

We have invested in the expansion of our distribution network through transactions with strategic independent bottlers or third-party brand ownership companies to ensure competitive distribution scale.

From time to time, we additionally acquire brand ownership companies to expand our portfolio.

Additionally, from time to time, we acquire brand ownership companies to expand our portfolio.

These transactions could be accounted for either as an acquisition of a business or as an asset acquisition, if the majority of the transaction price represents the acquisition of a single intangible asset.

Purchases of intangible assets were $14 million and $31 million for the first quarter of 2025 and 2024, respectively.

In the second quarter of 2025, we completed the Dyla acquisition.

Refer to Note 3 of the Notes to our Unaudited Consolidated Financial Statements for additional information.

Purchases of intangible assets were $16 million and $49 million for the first six months of 2025 and 2024, respectively.

Uncertainties and Trends Affecting Liquidity

Disruptions in financial and credit markets, including those caused by inflation, global economic uncertainty or economic downturns, the imposition of new tariffs or changes to existing tariffs, trade wars, barriers or restrictions, or threats of such actions, or fluctuations in interest rates, may impact our ability to manage normal commercial relationships with our customers, suppliers, and creditors, and may also impact our ability to access liquidity through financial markets in a timely and cost-effective manner.

Disruptions in financial and credit markets, including those caused by inflation, global economic uncertainty or economic downturns, fluctuations in interest rates, or the imposition of new tariffs or changes to existing tariffs, trade wars, barriers or restrictions, or threats of such actions, and related uncertainty, may impact our ability to manage normal commercial relationships with our customers, suppliers, and creditors, and may also impact our ability to access liquidity through financial markets in a timely and cost-effective manner.

These disruptions could have a negative impact on the ability of our customers to timely pay their obligations to us, thus reducing our cash flow, or the ability of our vendors to timely supply materials.

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Summarized financial information for the Parent and Guarantors follows:

(in millions) For the First Quarter of 2025

(in millions) First Six Months of 2025

Net sales $ 5,041

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Net income 1,084

(in millions) March 31, 2025 December 31, 2024

(in millions) June 30, 2025 December 31, 2024

Current assets $ 2,843 $ 2,373

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$ 27,485 $ 27,085

(1) Includes $134 million and $115 million of intercompany receivables due to the Parent and Guarantors from the Non-Guarantors as of March 31, 2025 and December 31, 2024, respectively.

(2) Includes $2,153 million and $1,997 million of intercompany payables due to the Non-Guarantors from the Parent and Guarantors as of March 31, 2025 and December 31, 2024, respectively.

(1) Includes $196 million and $115 million of intercompany receivables due to the Parent and Guarantors from the Non-Guarantors as of June 30, 2025 and December 31, 2024, respectively.

(2) Includes $2,330 million and $1,997 million of intercompany payables due to the Non-Guarantors from the Parent and Guarantors as of June 30, 2025 and December 31, 2024, respectively.

Quantitative and Qualitative Disclosures About Market Risk

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis