2 unchanged sentences
We are exposed to interest rate risk related to our fixed-rate investment portfolio and outstanding debt.
−Removed: The investment portfolio is managed consistent with our overall liquidity strategy in support of both working capital needs and strategic growth of our businesses.
+Added: The investment portfolio is managed consistent with our overall liquidity strategy in support of both working capital needs and growth of our businesses.
As of the end of fiscal year 2024, we performed a sensitivity analysis on our investment portfolio.
−Removed: According to our analysis, parallel shifts in the yield curve of both plus or minus 0.5% would result in changes in fair values for these investments of $17 million.
−Removed: As of the end of fiscal year 2023, we had $11.00 billion of senior Notes outstanding.
+Added: According to our analysis, parallel shifts in the yield curve of plus or minus 0.5% would result in a change in fair value for these investments of $93 million.
+Added: As of the end of fiscal year 2024, we had $9.7 billion of senior Notes net outstanding.
We carry the Notes at face value less unamortized discount on our Consolidated Balance Sheets.
−Removed: As the Notes bear interest at a fixed rate, we have no financial statement risk associated with changes in interest rates.
−Removed: Refer to Note 12 of
−Removed: the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for additional information.
+Added: As the Notes bear interest at a fixed rate, we have no
+Added: financial statement risk associated with changes in interest rates.
+Added: Refer to Note 12 of the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for additional information.
Foreign Exchange Rate Risk
We consider our direct exposure to foreign exchange rate fluctuations to be minimal as our sales are in United States dollars and foreign currency forward contracts are used to offset movements of foreign currency exchange rate movements.
−Removed: Gains or losses from foreign currency remeasurement are included in other income or expense.
+Added: Gains or losses from foreign currency remeasurement are included in other income or expenses.
The impact of foreign currency transaction gain or loss included in determining net income was not significant for fiscal years 2024 and 2023.
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Increases in the value of the United States’ dollar relative to other currencies would make our products more expensive, which could negatively impact our ability to compete.
−Removed: Conversely, decreases in the value of the United States’ dollar relative to other currencies could result in our suppliers raising their prices in order to continue doing business with us.
−Removed: Additionally, we have international operations and incur expenditures in currencies other than U.S.
−Removed: Our operating expenses benefit from a stronger dollar and are adversely affected by a weaker dollar.
−Removed: The primary currency we hedge is Israeli Shekel.
−Removed: We use foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses.
−Removed: We designate these contracts as cash flow hedges and assess the effectiveness of the hedge relationships on a spot to spot basis.
−Removed: Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss, and then reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur.
−Removed: We also use foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than U.S.
−Removed: These forward contracts were not designated for hedge accounting treatment.
−Removed: Therefore, the change in fair value of these contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense.
−Removed: dollar strengthened by 10% as of January 29, 2023 and January 30, 2022, the amount recorded in accumulated other comprehensive income (loss) related to our foreign exchange contracts before tax effect would have been approximately $112 million and $103 million lower, respectively.
+Added: Conversely, decreases in the value of the United States’ dollar relative to other currencies could result in our suppliers raising their manufacturing costs.
+Added: dollar strengthened by 10% as of January 28, 2024 and January 29, 2023, the amount recorded in accumulated other comprehensive income (loss) related to our foreign exchange contracts before tax effect would have been $116 million and $112 million lower, respectively.
Change in value recorded in accumulated other comprehensive income (loss) would be expected to offset a corresponding change in hedged forecasted foreign currency expenses when recognized.
−Removed: If an adverse 10% foreign exchange rate change was applied to our balance sheet hedging contracts, it would have resulted in an adverse impact on income before taxes of approximately $36 million and $41 million as of January 29, 2023 and January 30, 2022, respectively.
+Added: If an adverse 10% foreign exchange rate change was applied to our balance sheet hedging contracts, it would have resulted in an adverse impact on income before taxes of $60 million and $36 million as of January 28, 2024 and January 29, 2023, respectively.
These changes in fair values would be offset in other income (expense), net by corresponding change in fair values of the foreign currency denominated monetary assets and liabilities, assuming the hedge contracts fully cover the foreign currency denominated monetary assets and liabilities balances.
4 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.