16 unchanged sentences
Our objective in managing this interest rate exposure is to limit the impact of interest rate changes on earnings and cash flows and to reduce overall borrowing costs.
−Removed: To achieve these objectives, we maintain a mix of commercial paper, bank loans, and fixed-rate debt of varying maturities.
+Added: To achieve these objectives, we maintain a mix of commercial paper, bank loans, and fixed-rate debt of varying maturities and have entered into receive-fixed, pay-variable interest rate swaps for a portion of our fixed-rate debt.
MARKET RISK MEASUREMENT
We monitor foreign exchange risk, interest rate risk and related derivatives using a variety of techniques including a review of market value, sensitivity analysis and Value-at-Risk ("VaR").
−Removed: Our market-sensitive derivative and other financial instruments are foreign currency forward contracts, foreign currency option contracts, intercompany loans denominated in non-functional currencies and fixed interest rate U.S.
+Added: Our market-sensitive derivative and other financial instruments are foreign currency forward contracts, foreign currency option contracts, interest rate swaps, intercompany loans denominated in non-functional currencies and fixed interest rate U.S.
Dollar denominated debt.
12 unchanged sentences
The estimated maximum one-day loss in fair value on our foreign currency sensitive derivative financial instruments, derived using the VaR model, was $57 million and $111 million as of May 31, 2024 and 2023, respectively.
−Removed: The VaR increased year-over-year as a result of an increase in foreign currency volatilities as of May 31, 2023.
+Added: The VaR decreased year-over-year as a result of a decrease in foreign currency volatilities as of May 31, 2024.
Such a hypothetical loss in the fair value of our derivatives would be offset by increases in the value of the underlying transactions being hedged.
The average monthly change in the fair values of foreign currency forward and foreign currency option derivative instruments was $180 million and $289 million during fiscal 2024 and fiscal 2023, respectively.
−Removed: The instruments not included in the VaR are intercompany loans denominated in non-functional currencies and fixed interest rate U.S.
−Removed: Dollar denominated debt.
−Removed: Intercompany loans and related interest amounts are eliminated in consolidation.
−Removed: Furthermore, our non-functional currency intercompany loans are substantially hedged against foreign exchange risk through the use of forward
+Added: The instruments not included in the VaR are intercompany loans denominated in non-functional currencies, fixed interest rate U.S.
+Added: Dollar denominated debt, and interest rate swaps.
+Added: Intercompany loans and related interest amounts are eliminated in
2024 FORM 10-K 51
−Removed: contracts, which are included in the VaR calculation above.
+Added: consolidation.
+Added: Furthermore, our non-functional currency intercompany loans are substantially hedged against foreign exchange risk through the use of forward contracts, which are included in the VaR calculation above.
Therefore, we consider the interest rate and foreign currency market risks associated with our non-functional currency intercompany loans to be immaterial to our consolidated financial position, results of operations and cash flows.
−Removed: Details of third-party debt are provided in the table below.
+Added: Details of third-party debt and interest rate swaps are provided in the table below.
The table presents principal cash flows and related weighted average interest rates by expected maturity dates.
+Added: The weighted average variable interest rates for the fixed rate swapped to variable rate swaps reflect the effective interest rates at May 31, 2024.
EXPECTED MATURITY DATE YEAR ENDING MAY 31,
6 unchanged sentences
Average interest rate 2.4 % 0.0 % 2.6 % 0.0 % 0.0 % 3.3 % 3.1 %
+Added: Interest Rate Swaps — Fixed rate swapped to variable rate
+Added: Notional amount
+Added: $ — $ — $ — $ — $ — $ 1,800 $ 1,800 $ (31)
+Added: Average fixed interest rate
+Added: 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 3.5 % 3.5 %
+Added: Average variable interest rate
+Added: 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 3.7 % 3.7 %
2024 FORM 10-K 52
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.