17 unchanged sentences
We have established interest rate risk limits that we closely monitor by measuring interest rate sensitivities in our debt and interest rate derivatives portfolios.
−Removed: Most of our foreign-denominated long-term debt has been swapped from fixed-rate or floating-rate foreign currencies to fixed-rate U.S.
+Added: Dollars in millions except per share amounts
+Added: Our foreign-denominated long-term debt has been swapped from fixed-rate or floating-rate foreign currencies to fixed-rate U.S.
dollars at issuance through cross-currency swaps, removing interest rate risk and foreign currency exchange risk associated with the underlying interest and principal payments.
Likewise, periodically we enter into interest rate locks to partially hedge the risk of increases in the benchmark interest rate during the period leading up to the probable issuance of fixed-rate debt.
−Removed: We expect gains or losses in our cross-currency swaps and interest rate locks to offset the losses and gains in the financial instruments they hedge.
−Removed: We had no interest rate swaps and no interest rate locks at December 31, 2022.
+Added: We expect gains or losses on our cross-currency swaps and interest rate locks to offset the losses and gains in the financial instruments they hedge.
+Added: Below are our interest rate derivatives subject to material interest rate risk as of December 31, 2023.
+Added: The interest rates illustrated below refer to the average rates we expect to pay based on current and implied forward rates and the average rates we expect to receive based on derivative contracts.
+Added: The notional amount is the principal amount of the debt subject to the interest rate swap contracts .
+Added: The fair value asset (liability) represents the amount we would receive (pay) if we terminated the contracts as of December 31, 2023.
+Added: 2024 2025 2026 2027 2028 Thereafter Total Fair Value 12/31/2023
+Added: Interest Rate Derivatives
+Added: Interest Rate Swaps:
+Added: Receive Fixed/Pay
+Added: Variable Notional
+Added: Amount Maturing 2
+Added: $ — $ — $ 1,750 $ — $ — $ — $ 1,750 $ (2)
+Added: Weighted-Average
+Added: Variable Rate Payable 1,2
+Added: 5.0 % 3.6 % 3.3 % — % — % — %
+Added: Weighted-Average
+Added: Fixed Rate Receivable
+Added: 5.5 % 5.5 % 5.5 % — % — % — %
+Added: 1 Interest payable based on implied forward rates for the secured overnight financing rate ( SOFR) plus a spread of approximately 14 basis points.
+Added: 2 Derivative is cancelable by the counterparty beginning in 2024.
+Added: We had no interest rate locks at December 31, 2023.
Foreign Exchange Risk
1 unchanged sentence
We are also exposed to foreign currency exchange risk through our foreign affiliates and equity investments in foreign companies.
−Removed: Through cross-currency swaps, most of our foreign-denominated debt has been swapped from fixed-rate or floating-rate foreign currencies to fixed-rate U.S.
+Added: Through cross-currency swaps, our foreign-denominated debt has been swapped from fixed-rate or floating-rate foreign currencies to fixed-rate U.S.
dollars at issuance, removing interest rate and foreign currency exchange risk associated with the underlying interest and principal payments.
2 unchanged sentences
For the purpose of assessing specific risks, we use a sensitivity analysis to determine the effects that market risk exposures may have on the fair value of our financial instruments and results of operations.
−Removed: We had foreign exchange forward contracts with a notional value of $617 and a fair value of $(23) outstanding at December 31, 2022.
+Added: We had no foreign exchange forward contracts at December 31, 2023.
REPORT OF MANAGEMENT
51 unchanged sentences
The Company determines the discount rates used to measure the obligations based on the development of a yield curve using high-quality corporate bonds selected to yield cash flows that correspond to the expected timing and amount of the expected future benefit payments.
−Removed: Auditing the defined benefit pension and postretirement benefit obligations was complex due to the judgmental nature of the actuarial assumptions made by management, primarily the discount rate, used in the Company’s measurement process.
−Removed: The discount rate has a significant effect on the measurement of the defined benefit pension and postretirement benefit obligations, and auditing the discount rate was complex because it required an evaluation of the credit quality of the corporate bonds used to develop the discount rate and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments.
+Added: Auditing the defined benefit pension and postretirement benefit obligations was complex due to the judgmental nature of the actuarial assumptions made by management, primarily the discount rates, used in the Company’s measurement process.
+Added: The discount rates have a significant effect on the measurement of the defined benefit pension and postretirement benefit obligations, and auditing the discount rates was complex because it required an evaluation of the credit quality of the corporate bonds used to develop the discount rates and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments.
Addressed the Matter in Our
We obtained an understanding, evaluated the design and tested the operating effectiveness of certain controls over management’s review of the determination of the discount rates used in the defined benefit pension and postretirement benefit obligations calculations.
−Removed: To test the determination of the discount rate used in the calculation of the defined benefit pension and postretirement benefit obligations, we performed audit procedures that focused on evaluating, with the assistance of our actuarial specialists, the determination of the discount rates, among other procedures.
+Added: To test the determination of the discount rates used in the calculation of the defined benefit pension and postretirement benefit obligations, we performed audit procedures that focused on evaluating, with the assistance of our actuarial specialists, the determination of the discount rates, among other procedures.
For example, we evaluated the selected yield curve used to determine the discount rates applied in measuring the defined benefit pension and postretirement benefit obligations.
5 unchanged sentences
Estimating fair values in connection with these impairment evaluations involves the utilization of discounted cash flow and market multiple approaches.
−Removed: As described in Note 9 to the consolidated financial statements, impairment charges of $13,478 million in the Business Wireline reporting unit, $10,508 million in the Consumer Wireline reporting unit and $826 million in the Mexico reporting unit were recorded during the year.
Auditing management’s annual goodwill impairment test for the Consumer Wireline and Business Wireline reporting units was complex because the estimation of fair values involves subjective management assumptions, such as projected terminal growth rates, projected long-term EBITDA margins, and weighted average cost of capital, and complex valuation methodologies, such as the discounted cash flow and market multiple approaches.
41 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.