3 unchanged sentences
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.
−Removed: 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.
+Added: A hypothetical 10% unfavorable change in the average
+Added: exchange rate used to translate Net income for the fiscal twelve months ended December 28, 2025 from local currencies to U.S.
dollars would result in a decline in Net income of approximately $122 million.
5 unchanged sentences
Inflation Risk
−Removed: 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.
−Removed: 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.
−Removed: During 2023 and 2024, we partially offset the impact of prior inflationary increases through price increases, in addition to continued supply chain optimization initiatives.
−Removed: 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.
+Added: Inflationary pressures have increased in recent years, and the costs of raw materials, packaging components, and other inputs for our products may increase in the future.
+Added: In recent years, 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, 2024, and 2025, we partially offset the impact of prior inflationary increases, as well as tariffs, through price increases, in addition to continued supply chain optimization initiatives.
+Added: However, if our costs continue to be subject to inflationary pressures or higher tariffs, which remain subject to frequent and rapid change, 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
3 unchanged sentences
The objective is to maintain a cost-effective mix that management deems appropriate.
−Removed: From time to time, we also hedge the anticipated issuance of fixed-rate debt, and those contracts are designated as cash flow hedges.
+Added: From time to time, we also hedge the anticipated issuance of fixed-rate debt by entering into forward starting interest rate swaps, which are designated as cash flow hedging relationships at the date of contract inception.
+Added: See Note 16, “Fair Value Measurements,” to the Consolidated Financial Statements included herein for additional information.
As of December 28, 2025, our outstanding long-term debt portfolio was comprised of primarily fixed-rate debt, and therefore, any fluctuation in market interest rate is not expected to have a material impact on our results of operations.
−Removed: In connection with the Separation, we incurred approximately $9.0 billion of new debt pursuant to the Debt Financing Transactions.
−Removed: 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 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
−Removed: Separation did not occur.
−Removed: In connection with the Senior Notes offering, the interest rate swap contracts were early terminated on a negotiated basis.
−Removed: See Note 16, “Fair Value Measurements,” to the Consolidated Financial Statements included herein.
Commodity Price Risk
7 unchanged sentences
We are also exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts;
−Removed: however, nonperformance is considered unlikely and any nonperformance is unlikely to be material as it is our policy to contract with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations.
+Added: however, nonperformance is considered unlikely and any nonperformance is
+Added: unlikely to be material as it is our policy to contract with diverse, creditworthy counterparties based upon both strong credit ratings and other credit considerations.
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.