3 unchanged sentences
Our risk management program focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results.
+Added: During 2020, the COVID-19 pandemic and related global response significantly impacted economic activity and markets around the world.
+Added: National and local governments imposed preventative or protective restrictions on travel and business operations and advised or required citizens to remain at home.
+Added: Temporary closures of businesses were ordered and numerous other businesses temporarily closed voluntarily.
+Added: The impact of the global pandemic and response has had a material unfavorable impact on global markets, including commodity, currency and capital markets.
+Added: While some of these markets such as the U.S.
+Added: and other major stock markets and certain currencies have rebounded significantly in the second and third quarters of 2020, these markets are likely to continue to remain volatile while the situation continues.
+Added: An economic or credit crisis could occur and impair credit availability and our ability to raise capital when needed.
+Added: A disruption in the financial markets may have a negative effect on our derivative counterparties and could impair our banking or other business partners, on whom we rely for access to capital and as counterparties for a number of our derivative contracts.
+Added: We are actively working to mitigate these risks and we largely employed existing strategies that are described below to mitigate these market risks related to currency, commodity and interest rate risks.
We principally utilize derivative instruments to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates.
−Removed: For additional information on our derivative activity and the types of derivative instruments we use to hedge our currency exchange, commodity price and interest rate exposures, see Note 1, Summary of Significant Accounting Policies , and Note 10, Financial Instruments .
+Added: For additional information on our derivative activity and the types of derivative instruments we use to hedge our currency exchange, commodity price and interest rate exposures, see Note 10, Financial Instruments .
Many of our non-U.S.
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operations and other currency impacts, we cannot fully predict or eliminate volatility arising from changes in currency exchange rates on our consolidated financial results.
−Removed: See Consolidated Results of Operations and Results of Operations by Reportable Segment under Discussion and Analysis of Historical Results for currency exchange effects on our financial results.
+Added: See Consolidated Results of Operations and Results of Operations by Operating Segment under Discussion and Analysis of Historical Results for currency exchange effects on our financial results.
+Added: Throughout our discussion and analysis of results, we isolate currency impacts and supplementally provide net revenues, operating income and diluted earnings per share on a constant currency basis.
For additional information on the impact of currency policies, recent currency devaluations and highly inflationary accounting on our financial condition and results of operations, also see Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting .
We also continually monitor the market for commodities that we use in our products.
−Removed: Input costs may fluctuate widely due to international demand, weather conditions, government policy and regulation and unforeseen conditions.
+Added: Input costs may fluctuate widely due to international demand, weather conditions, government policy and regulation and unforeseen conditions such as the current COVID-19 pandemic.
To manage input cost volatility, we enter into forward purchase agreements and other derivative financial instruments.
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We periodically use interest rate swaps and forward interest rate contracts to achieve a desired proportion of variable versus fixed rate debt based on current and projected market conditions.
−Removed: Our weighted-average interest rate on our total debt was 2.2% as of December 31, 2019 , down from 2.3% as of December 31, 2018 , primarily due to lower interest rates on commercial paper borrowings.
−Removed: Beginning in 2018, we entered into new investment hedge derivative contracts, specifically, cross-currency interest rate swaps and forwards, to hedge certain investments in our non-U.S.
−Removed: operations against movements in exchange rates.
+Added: For more information on our 2020 debt activity, see Note 9, Debt and Borrowing Arrangements .
See Note 10, Financial Instruments , for more information on our derivative activity.
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As of December 31, 2020 and December 31, 2019, the estimated potential one-day loss in fair value of our interest rate-sensitive instruments, primarily debt, and the estimated potential one-day loss in pre-tax earnings from our currency and commodity instruments, as calculated in the VAR model, were:
−Removed: Pre-Tax Earnings Impact
−Removed: Fair Value Impact
+Added: Pre-Tax Earnings Impact Fair Value Impact
+Added: At 12/31/20 Average High Low At 12/31/20 Average High Low
(in millions)
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Commodity prices 6 25 42 6
−Removed: Pre-Tax Earnings Impact
−Removed: Fair Value Impact
+Added: Pre-Tax Earnings Impact Fair Value Impact
+Added: At 12/31/19 Average High Low At 12/31/19 Average High Low
(in millions)
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.