2 unchanged sentences
We are exposed to interest rate risk related to our indebtedness and our investment portfolio.
−Removed: As of August 29, 2019 and August 30, 2018 , we had fixed-rate debt of $5.3 billion and $3.1 billion, respectively, and as a result, the fair value of our debt fluctuates with changes in market interest rates.
−Removed: We estimate that, as of August 29, 2019 and August 30, 2018 , a decrease in market interest rates of 1% would increase the fair value of our fixed-rate debt by approximately $290 million and $79 million, respectively.
+Added: As of September 3, 2020 and August 29, 2019, we had fixed-rate debt of $4.9 billion and $5.3 billion, respectively, and as a result, the fair value of our debt fluctuates with changes in market interest rates.
+Added: We estimate that, as of September 3, 2020 and August 29, 2019, a decrease in market interest rates of 1% would increase the fair value of our fixed-rate debt by nearly $300 million.
+Added: As of September 3, 2020, we had variable-rate debt of $1.25 billion and, therefore, a 1% increase in the interest rates of our variable-rate debt would result in an increase in annual interest expense of approximately $13 million.
As of August 29, 2019, we had no variable rate debt.
−Removed: As of August 30, 2018 , we had variable-rate debt of $725 million.
−Removed: As of August 30, 2018 , a 1% increase in the interest rates of our variable-rate debt would result in an increase in annual interest expense of approximately $7 million.
Foreign Currency Exchange Rate Risk
3 unchanged sentences
The substantial majority of our sales are transacted in the U.S.
−Removed: however, significant amounts of our debt, operating expenditures, and capital purchases are incurred in or exposed to other currencies, primarily the euro, New Taiwan dollar, Singapore dollar, and yen.
+Added: however, significant amounts of our operating expenditures and capital purchases, and certain assets and liabilities, are incurred in or exposed to other currencies, primarily the euro, New Taiwan dollar, Singapore dollar, and yen.
We have established currency risk management programs for our monetary assets and liabilities denominated in foreign currencies to hedge against fluctuations in the fair value and volatility of future cash flows caused by changes in currency exchange rates.
−Removed: We generally utilize currency forward contracts in these hedging programs, which reduce, but do not always entirely eliminate, the impact of currency exchange rate movements.
+Added: We generally utilize currency forward contracts in these
+Added: 45 | 2020 10-K
+Added: hedging programs, which reduce, but do not always entirely eliminate, the impact of currency exchange rate movements.
We do not use derivative financial instruments for trading or speculative purposes.
Based on monetary assets and liabilities denominated in foreign currencies, we estimate that a 10% adverse change in exchange rates versus the U.S.
−Removed: dollar would result in losses of approximately $149 million as of August 29, 2019 and $78 million as of August 30, 2018 .
+Added: dollar would result in losses of approximately $98 million as of September 3, 2020 and $149 million as of August 29, 2019.
We hedge our exposure to changes in currency exchange rates by utilizing a rolling hedge strategy for our primary currency exposures with currency forward contracts that generally mature within three months.
−Removed: The effectiveness of our hedges is dependent, among other factors, upon our ability to accurately forecast our monetary assets and liabilities.
−Removed: To hedge the exposure of changes in cash flows from changes in currency exchange rates for certain capital expenditures, we may utilize currency forward contracts that generally mature within 12 months.
+Added: The effectiveness of our hedges is dependent, among other factors, upon our ability to accurately measure exposures on a timely basis.
+Added: To hedge the exposure of changes in cash flows from changes in currency exchange rates for certain capital expenditures and manufacturing costs, we may utilize currency forward contracts that generally mature within two years.
(See “Item 8.
1 unchanged sentence
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.