8 unchanged sentences
Our primary exposure to foreign exchange rates is the Canadian dollar, the Mexican peso, and the Euro against the U.S.
+Added: dollar, including significant anticipated Euro-denominated cash outflows resulting from the intended JDE Peet's Acquisition.
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, 2024, we had derivative contracts outstanding with notional values of $976 million maturing at various dates through September 2026.
−Removed: The fair value of foreign currency derivatives that qualify for hedge accounting resulted in a net unrealized gain of $41 million as of December 31, 2024, and the impact of a 10% weakening in the U.S.
−Removed: dollar is estimated to decrease the fair value by approximately $50 million.
−Removed: The fair value of foreign currency derivatives that do not qualify for hedge accounting resulted in a net unrealized gain of $10 million as of December 31, 2024, and the impact of a 10% weakening in the U.S.
+Added: As of December 31, 2025, we had derivative contracts outstanding with notional values of $13,033 million, including approximately $11,810 million of forward contracts associated with the planned JDE Peet's Acquisition.
+Added: These contracts mature at various dates through June 2027.
+Added: The fair value of foreign currency derivatives that qualify for hedge accounting resulted in a net unrealized loss of $13 million as of December 31, 2025, and the impact of a 10% weakening in the U.S.
dollar is estimated to decrease the fair value by approximately $68 million.
+Added: The fair value of foreign currency derivatives that do not qualify for hedge accounting resulted in a net unrealized loss of $40 million as of December 31, 2025, and the impact of a 10% weakening in the U.S.
+Added: dollar is estimated to increase the fair value by approximately $1,248 million.
Any increase or decrease in the value of the foreign currency derivatives would have an approximately offsetting change in the underlying hedged risk.
4 unchanged sentences
These derivative instruments are generally based on SOFR and a credit spread.
−Removed: As of December 31, 2024, all of our outstanding forward starting swaps, with a total notional value of $1,700 million, are expected to begin such payments or receipts in 2025.
+Added: As of December 31, 2025, we had derivative contracts outstanding with aggregate notional value of $3.8 billion, $1.5 billion of which relate to planned future issuances of long-term debt, and maturing at various dates through November 2046.
We estimate that the potential impact to our interest rate expense associated with variable rate interest payments resulting from a hypothetical interest rate change of 1%, based on amounts outstanding as of December 31, 2025, would be an increase or decrease of approximately $69 million.
−Removed: Our estimate of the annual impact to interest expense reflects our assumption that SOFR will not fall below 0%.
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.
−Removed: Our principal commodities risks relate to our purchases of coffee beans, PET, aluminum, diesel fuel, corn (for high fructose corn syrup), apple juice concentrate, sucrose, and natural gas (for use in processing and packaging).
+Added: Our principal commodities risks relate to our purchases of coffee beans, PET, Polypropylene, aluminum, diesel fuel, corn (for high fructose corn syrup), apple juice concentrate, sucrose, and natural gas (for use in processing and packaging).
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, 2024, we had derivative contracts outstanding with a notional value of $515 million maturing at various dates through July 2026.
−Removed: The fair market value of these contracts as of December 31, 2024 was a net liability of $51 million.
+Added: As of December 31, 2025, we had derivative contracts outstanding with a notional value of $595 million maturing at various dates through January 2028.
+Added: The fair market value of these contracts as of December 31, 2025 was a net asset of $18 million.
As of December 31, 2025, a 10% change (up or down) in commodity prices is estimated to increase or decrease the fair value of these derivative instruments by approximately $60 million.
−Removed: Any increase or decrease in the value of the commodities derivatives instruments would have an approximately offsetting change in the underlying hedged risk.
+Added: Any change in the value of the commodities derivatives instruments would have an approximately offsetting change in the underlying hedged risk.
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.