Quantitative and Qualitative Disclosures About Market Risk.
−Removed: We are exposed to market risk from changes in interest rates and currency exchange rates.
+Added: We are exposed to market risk primarily from changes in interest rates and currency exchange rates.
We manage our exposure to these risks by monitoring available financing alternatives, through the development and application of credit granting policies, and by entering into derivative arrangements.
We do not foresee any significant changes in either our exposure to fluctuations in interest rates or currency rates or how we manage such exposure in the future.
−Removed: We are exposed to interest rate risk on our floating-rate notes receivable and floating-rate debt.
−Removed: Changes in interest rates also impact the fair value of our fixed-rate notes receivable and the fair value of our fixed-rate long-term debt.
We use derivative instruments, including cash flow hedges, fair value hedges, net investment in non-U.S.
operations hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks associated with fluctuations in interest rates and currency exchange rates.
−Removed: As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes.
+Added: We continue to have exposure to such risks to the extent they are not hedged.
See Note 2 for more information on derivative instruments.
−Removed: The following table sets forth the scheduled maturities and the total fair value as of year-end 2022 for our financial instruments that are impacted by market risks:
+Added: We use forward contracts not designated as hedging instruments to manage currency exchange rate risk associated with certain cash and intercompany loan balances.
+Added: We intend to offset the gains and losses related to these forward contracts with the gains and losses related to the remeasurement of our cash and intercompany loan balances, such that there is a negligible effect on earnings.
+Added: We do not consider the fair value or earnings impact of these forward contracts to be material to our consolidated financial statements.
+Added: We are exposed to interest rate risk on our floating-rate notes receivable and floating-rate debt, including the effect of interest rate swaps.
+Added: Changes in interest rates also impact the fair value of our fixed-rate notes receivable and the fair value of our fixed-rate long-term debt.
+Added: The following table sets forth the scheduled maturities and the total fair value as of year-end 2023 for our financial instruments that are impacted by interest rate risk:
Maturities by Period
−Removed: ($ in millions) 2023 2024 2025 2026 2027 There-
+Added: (in millions)
+Added: 2024 2025 2026 2027 2028 There-
Assets - Maturities represent expected principal receipts.
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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.