1 unchanged sentence
Foreign Currency Risk
−Removed: Because we manufacture and sell products and finance operations in a number of countries throughout the world, we are exposed to the impact on revenue and expenses of movements in currency exchange rates, including as a result of the strengthening of the U.S.
−Removed: dollar or fluctuations in foreign currency rates in numerous jurisdictions, particularly the European Union, the United Kingdom, Japan, China, Canada, Brazil, and India.
+Added: The global nature of our operations (particularly, the EU, China, Canada, the United Kingdom, Brazil, and India), both in the manufacture and sale of our products, results in foreign currency exposure to our financial statements.
+Added: Because we manufacture and sell products and finance operations in a number of countries throughout the world, we are exposed to the impact of movements in currency exchange rates on revenue and expenses.
A hypothetical 10% unfavorable change in the average exchange rate used to translate Net income for the fiscal twelve months ended December 29, 2024 from local currencies to U.S.
−Removed: dollars would result in a decline of approximately $98 million.
−Removed: We manage the impact of foreign exchange rate movements on our earnings, cash flows and fair values of assets and liabilities through operational means and through the use of various financial instruments, including derivative instruments such as forward and swap foreign exchange contracts.
−Removed: The financial instruments utilized are viewed as risk management tools and are not used for trading or speculative purposes.
−Removed: Forward and swap foreign exchange contracts are sensitive to changes in foreign currency rates.
−Removed: As of December 31, 2023, a hypothetical 10% unfavorable change in exchange rate would result in an unrealized loss of approximately $69 million.
+Added: dollars would result in a decline in Net income of approximately $83 million.
+Added: We manage the impact of foreign exchange rate translation and transaction exposures through operational means and the use of derivative financial instruments such as forward foreign exchange contracts and cross currency swap contracts.
+Added: The derivative financial instruments are utilized as risk management tools and are not used for trading or speculative purposes.
+Added: The fair value of forward foreign exchange contracts and cross currency swap contracts is sensitive to changes in foreign currency rates.
+Added: As of December 29, 2024, a hypothetical 10% unfavorable change in exchange rates would result in an unrealized loss of approximately $187 million associated with the change in the fair value of the forward foreign exchange contracts and the cross currency swap contracts.
Gains or losses on these contracts are generally offset by the gains or losses on the underlying transactions, and therefore, would have no impact on future anticipated earnings and cash flows.
Inflation Risk
−Removed: Inflationary pressures have recently increased, and may continue to increase, the costs of raw materials, packaging components, and other inputs for our products.
−Removed: In recent years, we have experienced, and we continue to experience, higher than expected inflation, including escalating transportation, commodity, and other supply chain costs and disruptions that have affected, and continue to affect, our results of operations.
−Removed: We have partially offset the impact of inflation largely through price increases, in addition to continued supply chain optimization initiatives.
−Removed: However, if our costs continue to be subject to significant inflationary pressures, we may not be able to offset such higher costs through price increases, which could adversely affect our business, results of operations, or financial condition.
+Added: Inflationary pressures have increased in recent years, and may increase in the future the costs of raw materials, packaging components, and other inputs for our products.
+Added: Since 2021, we have experienced, and we may in the future experience, higher than expected inflation, including escalating transportation, commodity, and other supply chain costs and disruptions that have adversely affected, and could in the future adversely affect, our results of operations.
+Added: During 2023 and 2024, we partially offset the impact of prior inflationary increases through price increases, in addition to continued supply chain optimization initiatives.
+Added: However, if our costs continue to be subject to inflationary pressures, we may not be able to offset the higher costs through price increases, achieve cost efficiencies, or otherwise manage the exposure through sourcing strategies, ongoing productivity initiatives, and the use of commodity hedging contracts, which could adversely affect our business, results of operations, or financial condition.
Interest Rate Risk
−Removed: Our cash equivalents and marketable securities are subject to market risk due to changes in interest rates.
+Added: We are subject to interest rate risk related to our cash equivalents and marketable securities.
Fixed rate securities may have their market value adversely affected due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.
−Removed: Interest rate risk is managed through the maintenance of a portfolio of variable and fixed-rate debt composed of short and long-term instruments.
+Added: Interest rate risk is managed through the maintenance of a portfolio of variable and fixed-rate debt composed of short-term and long-term instruments.
The objective is to maintain a cost-effective mix that management deems appropriate.
2 unchanged sentences
In connection with the Separation, we incurred approximately $9.0 billion of new debt pursuant to the Debt Financing Transactions.
−Removed: As of December 31, 2023, we have $7.7 billion of Senior Notes and $599 million of commercial paper issued under the Commercial Paper Program outstanding, net of related amortization of debt issuance costs and discounts.
+Added: As of December 29, 2024, we have $7.7 billion of Senior Notes and $797 million of commercial paper issued under the Commercial Paper Program outstanding, net of related amortization of discounts and debt issuance costs.
Our interest expense for any new floating rate debt we may incur in the future, including under the Revolving Credit Facility, could be exposed to changes in interest rates.
Interest rate risk is highly sensitive due to many factors, including the monetary and tax policies of the United States and other countries, market and economic factors, and other factors beyond our control.
−Removed: Beginning in October 2022, we entered into forward starting interest rate swap agreements in contemplation of securing long-term financing for the Separation or for other long-term financing purposes in the event the Separation did not occur.
+Added: Beginning in the fiscal three months ended January 1, 2023, we entered into forward starting interest rate swap agreements in contemplation of securing long-term financing for the Separation or for other long-term financing purposes in the event the
+Added: Separation did not occur.
In connection with the Senior Notes offering, the interest rate swap contracts were early terminated on a negotiated basis.
1 unchanged sentence
Commodity Price Risk
−Removed: We are exposed to commodity and other price risk, including from resins, pulp and corn derivatives, vegetable oils and oleochemicals;
+Added: We are exposed to commodity and other price risks, including from resins, silicon, pulp and corn derivatives, paper, agrochemicals, vegetable oils and oleochemicals;
and other inputs, including energy, labor, transportation (such as trucks, containers, and ocean freight), and logistics services.
7 unchanged sentences
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.