9 unchanged sentences
We use foreign currency forward contracts to hedge the price risk associated with firmly committed and forecasted foreign denominated payments and receipts related to our ongoing business and financing.
−Removed: We actively manage foreign currency exposures that are associated with commi tted foreign currency purchases and sales, and other assets and liabilities created in the normal course of business at the operating unit level.
+Added: We actively manage foreign currency exposures that are
+Added: associated with commi tted foreign currency purchases and sales, and other assets and liabilities created in the normal course of business at the operating unit level.
More than insignificant exposures that cannot be naturally offset within an operating unit are hedged with foreign currency derivatives.
5 unchanged sentences
We believe these foreign currency forward exchange contracts and the offsetting underlying commitments, when taken together, do not create material market risk.
−Removed: Within our aerospace business, our sales are typically denominated in U.S.
+Added: Our sales are typically denominated in U.S.
However, for our non-U.S.
−Removed: based entities, such as Pratt & Whitney Canada (P&WC), a substantial portion of their costs are incurred in local currencies.
+Added: based entities, such as Pratt & Whitney Canada Corp.
+Added: (P&WC), a substantial portion of their costs are incurred in local currencies.
Consequently, there is a foreign currency exchange impact and risk to operational results as U.S.
4 unchanged sentences
Dollars will be converted.
−Removed: The majority of this hedging activity occurs at P&WC and Collins, and hedging activity also occurs to a lesser extent at the remainder of Pratt & Whitney.
−Removed: At P&WC and Collins, firm and forecasted sales for both original equipment and spare parts are hedged at varying amounts for up to 49 months on the U.S.
+Added: At P&WC and Collins Aerospace, firm and forecasted sales for both original equipment and spare parts are hedged at varying amounts on the U.S.
Dollar sales exposure as represented by the excess of U.S.
1 unchanged sentence
Dollar denominated purchases.
+Added: At Raytheon, portions of the cost to deliver a program may be denominated in a currency other than the currency of sale, and forecasts of such costs are frequently hedged to reduce foreign exchange exposures that can impact the cost of delivery of such programs.
+Added: Where sales of a Raytheon program are denominated in a currency other than the functional currency of the contracting affiliate, forecasted sales for that program may be hedged to minimize the resulting foreign exchange exposure for that affiliate.
Hedging gains and losses resulting from movements in foreign currency exchange rates are partially offset by the foreign currency translation impacts that are generated on the translation of local currency operating results into U.S.
Dollars for reporting purposes.
−Removed: While the objective of the hedging program is to minimize the foreign currency exchange impact on operating results, there are typically variances between the hedging gains or losses and the translational impact due to the length of hedging contracts, changes in the sales profile, volatility in the exchange rates and other such operational considerations.
+Added: While the objective of the hedging program is to minimize the foreign curren cy exchange impact on operating results, there are typically variances between the hedging gains or losses and the translational impact due to the length of hedging contracts, changes in the sales profile, volatility in the exchange rates and other such operational considerations.
Interest Rate Risk.
We have financial instruments that are subject to interest rate risk, principally fixed-rate debt obligations.
−Removed: A 100 basis points unfavorable interest rate movement would have had an approximate $3 billion and $4 billion i mpact on the fair value of our fixed-rate debt at December 31, 2022 and 2021.
+Added: A 100 basis point unfavorable interest rate movement would have had an approximate $3 billion i mpact on the fair value of our fixed-rate debt at both December 31, 2023 and 2022.
The investors in our fixed-rate debt obligations generally do not have the right to demand we pay off these obligations prior to maturity.
Therefore, we believe our exposure to interest rate risk on our fixed-rate debt is not material.
+Added: We also have variable-rate debt, including $4 billion of term loans outstanding, which is affected by changes in market interest rates.
+Added: A 100 basis point unfavorable interest rate movement on variable debt would not be expected to have a material effect on our operations or cash flows.
From time to time, we may hedge to floating rates using interest rate swaps.
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.