5 unchanged sentences
Interest Rate Risk:
−Removed: The fair value of our cash and cash equivalents at January 31, 2020, approximates carrying value.
+Added: The fair value of our cash and cash equivalents at July 31, 2020, approximates carrying value.
We are exposed to interest rate risk with regard to existing debt consisting of fixed- and variable-rate maturities.
8 unchanged sentences
Generally, changes in the fair value of the contract are equal to changes in the fair value of the underlying debt and have no net impact on earnings.
−Removed: We entered into interest rate contracts in November 2018 and June 2018, with notional values of $300.0 and $500.0, respectively, to manage our exposure to interest rate volatility associated with anticipated debt financing in 2020.
−Removed: These interest rate contracts are designated as cash flow hedges, and as a result, unrealized losses of $168.9 were deferred in accumulated other comprehensive income (loss) at January 31, 2020.
−Removed: A hypothetical 10 percent decrease in treasury rates at January 31, 2020, would result in an incremental loss of $20.4 on the fair value of these interest rate contracts.
+Added: In 2020, we terminated interest rate contracts concurrent with the pricing of the Senior Notes due March 15, 2030, and March 15, 2050.
+Added: They were designated as cash flow hedges and were used to manage our exposure to interest rate volatility associated with the anticipated debt financing.
+Added: The termination resulted in a pre-tax loss of $239.8, which was deferred and included as a component of accumulated other comprehensive income (loss) and is being amortized as interest expense over the life of the debt.
In 2015, we terminated the interest rate swap on the Senior Notes due October 15, 2021, which was designated as a fair value hedge and used to hedge against the changes in the fair value of the debt.
−Removed: As a result of the early termination, we received $58.1 in cash, which included $4.6 of accrued and prepaid interest and a $53.5 benefit that is deferred as a component of the carrying
−Removed: value of the long-term debt and is being recognized ratably as a reduction to interest expense over the remaining life of the related debt.
−Removed: At January 31, 2020, the remaining benefit of $14.3 was recorded as an increase in the long-term debt balance.
−Removed: In measuring interest rate risk by the amount of net change in the fair value of our financial liabilities, a hypothetical 100 basis-point decrease in interest rates at January 31, 2020, would increase the fair value of our long-term debt by $305.8.
+Added: As a result of the early termination, we received $58.1 in cash, which included $4.6 of accrued and prepaid interest and a $53.5 benefit that is deferred as a component of the carrying value of the long-term debt and is being recognized ratably as a reduction to interest expense over the remaining life of the related debt.
+Added: At July 31, 2020, the remaining benefit of $10.2 was recorded as an increase in the long-term debt balance.
+Added: In measuring interest rate risk by the amount of net change in the fair value of our financial liabilities, a hypothetical 100 basis-point decrease in interest rates at July 31, 2020, would increase the fair value of our long-term debt by $448.9.
Foreign Currency Exchange Risk:
2 unchanged sentences
Because we have foreign currency denominated assets and liabilities, financial exposure may result, primarily from the timing of transactions and the movement of exchange rates.
−Removed: The foreign currency balance sheet exposures as of January 31, 2020, are not expected to result in a significant impact on future earnings or cash flows.
+Added: The foreign currency balance sheet exposures as of July 31, 2020, are not expected to result in a significant impact on future earnings or cash flows.
We utilize foreign currency derivatives to manage the effect of foreign currency exchange fluctuations on future cash payments primarily related to purchases of certain raw materials and finished goods.
2 unchanged sentences
Therefore, the change in value of these instruments is immediately recognized in cost of products sold.
−Removed: Based on our hedged foreign currency positions as of January 31, 2020, a hypothetical 10 percent change in exchange rates would not materially impact the fair value.
−Removed: Revenues from customers outside the U.S., subject to foreign currency exchange, represented 5 percent of net sales during the nine months ended January 31, 2020.
+Added: Based on our hedged foreign currency positions as of July 31, 2020, a hypothetical 10 percent change in exchange rates would not materially impact the fair value.
+Added: Revenues from customers outside the U.S., subject to foreign currency exchange, represented 5 percent of net sales during the three months ended July 31, 2020.
Thus, certain revenues and expenses have been, and are expected to be, subject to the effect of foreign currency fluctuations, and these fluctuations may have an impact on operating results.
2 unchanged sentences
To manage the volatility related to anticipated commodity purchases, we use derivatives with maturities of generally less than one year.
−Removed: We do not qualify commodity derivatives for hedge accounting treatment, and as a result, the gains and losses on all commodity derivatives are immediately recognized in cost of products sold.
+Added: We do not qualify commodity derivatives for hedge accounting treatment.
+Added: As a result, the gains and losses on all commodity derivatives are immediately recognized in cost of products sold.
The following sensitivity analysis presents our potential loss of fair value resulting from a hypothetical 10 percent change in market prices related to commodities.
−Removed: January 31, 2020 April 30, 2019
+Added: July 31, 2020 April 30, 2020
High $ 37.6 $ 37.8
14 unchanged sentences
These risks and uncertainties include, but are not limited to, the following:
+Added: • the impact of the COVID-19 pandemic on our business, industry, suppliers, customers, consumers, employees, and communities, particularly with respect to our Away From Home business;
+Added: • disruptions or inefficiencies in our operations or supply chain, including any impact of the COVID-19 pandemic;
• our ability to achieve cost savings related to our cost management programs in the amounts and within the time frames currently anticipated;
−Removed: • our ability to generate sufficient cash flow to meet our cash deleveraging objectives;
+Added: • our ability to generate sufficient cash flow to continue operating under our capital deployment model, including capital expenditures, debt repayment, dividend payments, and share repurchases;
• volatility of commodity, energy, and other input costs;
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• the impact of food security concerns involving either our products or our competitors’ products;
−Removed: • the impact of accidents, extreme weather, and natural disasters;
+Added: • the impact of accidents, extreme weather, natural disasters, and pandemics (such as COVID-19);
• the concentration of certain of our businesses with key customers and suppliers, including single-source suppliers of certain key raw materials and finished goods, and our ability to manage and maintain key relationships;
−Removed: • the timing and amount of capital expenditures and share repurchases;
−Removed: • impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in useful lives of other intangible assets;
+Added: • impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in useful lives of other intangible assets or other long-lived assets;
• the impact of new or changes to existing governmental laws and regulations and their application, including tariffs;
• the outcome of tax examinations, changes in tax laws, and other tax matters;
−Removed: • foreign currency and interest rate fluctuations;
−Removed: • risks related to other factors described under “Risk Factors” in other reports and statements we have filed with the SEC.
+Added: • foreign currency exchange rate and interest rate fluctuations;
+Added: • risks related to other factors described under “Risk Factors” in other reports and statements we have filed with the Securities and Exchange Commission (the “SEC”).
Readers are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made, when evaluating the information presented in this Quarterly Report on Form 10-Q.
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.