2 unchanged sentences
We have made investments in marketable securities of companies of varying size, style, industry and geography and changes in investment allocations may affect the price volatility of our investments.
−Removed: Equity Price Risk.
−Removed: At September 25, 2022, the recorded value of our marketable equity securities was $164 million.
−Removed: A 10% decrease in the market price of our marketable equity securities at September 25, 2022 would have caused a decrease in the carrying amounts of these securities of $16 million.
−Removed: A 10% decrease in the market price of our marketable equity securities at September 26, 2021 would have caused a decrease in the carrying amounts of these securities of $68 million.
−Removed: Certain of our marketable equity investments are in early or growth stage companies, and the fair values of these investments have been and may continue to be subject to increased volatility.
Interest Rate Risk.
6 unchanged sentences
Consequently, we could incur impairment losses or realized losses on all or part of the values of our non-marketable equity investments.
−Removed: At September 25, 2022, the aggregate carrying value of our non-marketable equity investments (including those accounted for under the equity method) was included in other assets and was $1.3 billion.
+Added: At September 24, 2023, our non-marketable equity investments (including those accounted for under the equity method) consisted of investments in over 150 companies with an aggregate carrying value included in other assets of $1.2 billion.
Debt and Interest Rate Swap Agreements
Interest Rate Risk.
−Removed: As substantially all of our debt is comprised of unsecured fixed-rate notes, we are not subject to significant interest rate risk.
−Removed: At September 25, 2022, we had an aggregate principal amount of $500 million in unsecured floating-rate notes due January 30, 2023.
−Removed: The interest rates on our floating-rate notes are based on LIBOR.
−Removed: At September 25, 2022 and September 26, 2021, a hypothetical increase in LIBOR-based interest rates of 100 basis points would cause a negligible increase to interest expense on an annualized basis as it relates to our floating-rate notes.
−Removed: At September 25, 2022, we also had $499 million in commercial paper outstanding, for which our exposure to interest rate risk was negligible based on the original maturities of approximately three months or less.
−Removed: From time to time, we manage our exposure to certain interest rate risks related to our long-term debt through the use of interest rate swaps.
−Removed: During fiscal 2022, we entered into interest rate swaps that are designated as fair value hedges with an aggregate notional amount of $2.1 billion to effectively convert certain fixed-rate interest payments into floating-rate payments on our outstanding debt.
−Removed: We entered into these agreements, in part, to manage interest rate risk associated with our cash equivalents and marketable securities, in addition to changes in the fair value of our outstanding debt.
−Removed: At September 25, 2022, a hypothetical incr ease in interest rates of 100 basis points would not cause a loss as an increase in interest expense related to these interest rate swaps agreements would be offset by an increase in interest income from our cash equivalents and marketable securities portfolio.
−Removed: At September 25, 2022 and September 26, 2021 , we had outstanding forward-starting interest rate swaps with an aggregate notional amount of $1.6 billion and $2.6 billion , respectively, to hedge the variability of forecasted interest payments on anticipated debt issuances.
−Removed: The interest rates on our interest rate swaps are based on LIBOR.
−Removed: At September 25, 2022 and September 26, 2021 , a hypothetical decrease in interest rates of 100 basis points would cause a negligible and $23 million increase, respectively, to interest expense on an annualized basis resulting from the changes in fair values of the interest rate swaps related to our anticipated debt issuances.
+Added: At September 25, 2022, we had an aggregate principal amount of $500 million in unsecured floating-rate notes that matured in January 2023.
+Added: At September 24, 2023, all of our debt was comprised of unsecured fixed-rate notes.
+Added: From time to time, we issue commercial paper for which our exposure to interest rate risk is negligible based on the original maturities of approximately three months or less.
+Added: We manage our exposure to certain interest rate risks related to our long-term debt through the use of interest rate swaps.
+Added: We enter into these agreements to manage interest rate risk associated with our cash equivalents and marketable securities, in addition to changes in the fair value of our outstanding debt.
+Added: At September 24, 2023 and September 25, 2022, we had an aggregate notional amount of $2.1 billion in interest rate swaps that are designated as fair value hedges to effectively convert certain fixed-rate interest payments into floating-rate payments on our outstanding debt.
+Added: At September 24, 2023 and September 25, 2022, a hypothetical increase in interest rates of 100 basis points would not cause a loss as an increase in interest expense related to these interest rate swaps agreements would be offset by an increase in interest income from our cash equivalents and marketable securities portfolio.
+Added: At September 25, 2022, we had outstanding forward-starting interest rate swaps with an aggregate notional amount of $1.6 billion to hedge the variability of forecasted interest payments on anticipated debt issuances.
+Added: During the first quarter of fiscal 2023, in connection with our debt issuance in November 2022, we terminated these swaps.
Foreign Exchange Risk
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In the event of the financial insolvency or distress of a counterparty to our derivative financial instruments, we may be unable to settle transactions if the counterparty does not provide us with sufficient collateral to secure its net settlement obligations to us, which could have a negative impact on our results.
−Removed: Foreign Currency Options.
−Removed: At September 25, 2022, our net asset related to foreign currency options designated as hedges of foreign currency risk on royalties earned from certain licensees was $19 million.
−Removed: At September 25, 2022 and September 26, 2021, if our forecasted royalty revenues for currencies in which we hedge were to decline by 10% and foreign exchange rates were to change unfavorably by 10% in our hedged foreign currency, we would not incur a loss as our hedge positions would continue to be fully effective.
−Removed: Foreign Currency Forwards.
−Removed: At September 25, 2022, our net liability related to foreign currency forward contracts designated as hedges of foreign currency risk on certain operating expenditure transactions was $133 million.
−Removed: If our forecasted operating expenditures for currencies in which we hedge were to decline by 10% and foreign exchange rates were to change unfavorably by 10% in our hedged foreign currency, we would incur a negligible loss.
−Removed: Based on forecasts at September 26, 2021, assuming the same hypothetical market conditions, we would have incurred a negligible loss.
−Removed: At September 25, 2022, our net liability related to foreign currency forward contracts not designated as hedging instruments used to manage foreign currency risk on certain receivables and payables was negligible.
−Removed: At September 25, 2022 and September 26, 2021, if the foreign exchange rates were to change unfavorably by 10% in our hedged foreign currency, we would not incur a loss as the change in the fair value of the foreign currency forward contracts would be offset by the change in fair value of the related receivables and/or payables being economically hedged.
−Removed: Net Investment Hedges .
−Removed: In the third quarter of fiscal 2022, as a result of the reversal of the 2018 EC fine, we discontinued the associated net investment hedge .
−Removed: At September 25, 2022, we have designated $235 million of a certain foreign currency-denominated liability, excluding accrued interest, as a hedge of our net investment in a foreign subsidiary.
−Removed: At September 25, 2022 and September 26, 2021, if foreign exchange rates were to change unfavorably by 10% in our hedged foreign currency, there would be an increase of $23 million and $145 million, respectively, in the accumulated other comprehensive loss attributable to the cumulative foreign currency translation adjustment related to our net investment hedge.
−Removed: The change in value recorded in cumulative foreign currency translation adjustment would be expected to offset a corresponding foreign currency translation gain or loss from our investment in the foreign subsidiary.
+Added: Gains or losses on hedged foreign currency transactions and investments, including certain royalties earned from licensees, operating expenses and net investments in foreign subsidiaries, are generally offset by corresponding losses or gains on the related hedging instrument.
Functional Currency.
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As a result, we could experience unanticipated gains or losses on anticipated foreign currency cash flows, as well as economic loss with respect to the recoverability of investments.
−Removed: While we may hedge certain
−Removed: transactions with non-U.S.
+Added: While we may hedge certain transactions with non-U.S.
customers, declines in currency values in certain regions may, if not reversed, adversely affect future product sales because our products may become more expensive to purchase in the countries of the affected currencies.
1 unchanged sentence
Additional information regarding the financial instruments mentioned above is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 1.
−Removed: Significant Accounting Policies,” “Notes to Consolidated Financial Statements, Note 2.
+Added: Significant Accounting Policies,” “Notes to Consolidated Financial
+Added: Statements, Note 2.
Composition of Certain Financial Statement Items,” “Notes to Consolidated Financial Statements, Note 6.
Debt,” “Notes to Consolidated Financial Statements, Note 10.
−Removed: Fair Value Measurements” and “Notes to Consolidated Financial Statements, Note 11.
−Removed: Marketable Securities.”
+Added: Fair Value Measurements and Marketable Securities.”
Financial Statements and Supplementary Data
2 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.