QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: In the normal course of our global operations, we are exposed to market risks associated with foreign currency exchange fluctuations, volatile interest rates and commodity price risks.
+Added: In the normal course of our global operations, we are exposed to market risks associated with volatile interest rates, foreign currency exchange fluctuations and commodity price risks.
To manage our exposure to these market risks, we enter into certain supplier-based and market-based hedging transactions.
12 unchanged sentences
As of December 31, 2024, the following table presents our fixed rate debt and forward starting interest rate swaps as well as the impact of an absolute 1% adverse change in interest rates on their respective fair values.
−Removed: As of December 31, 2022, the following table presents our fixed rate debt and forward starting interest rate swaps and the impact of an absolute 1% adverse change in interest rates on our forward starting interest rate swaps and a 10% adverse change in the yield on our fixed rate debt.
−Removed: Notional amounts and fair values are presented in USD based on the applicable exchange rates as of December 31, 2023 and December 31, 2022, respectively.
+Added: Notional amounts and fair values are presented in USD based on the applicable exchange rates as of December 31, 2024.
See Part II - Item 8.
2 unchanged sentences
Notional amounts Fair Value Asset/(Liability) Effect of Adverse Change
−Removed: (in millions) As of December 31, 2023 As of December 31, 2022 As of December 31, 2023 As of December 31, 2022 As of December 31, 2023 As of December 31, 2022
+Added: (In millions)
+Added: As of December 31, 2024 As of December 31, 2023 As of December 31, 2024 As of December 31, 2023 As of December 31, 2024 As of December 31, 2023
USD denominated fixed rate debt $ 4,900.0 $ 4,900.0 $ (4,484.4) $ (4,608.2) $ (355.3) $ (414.4)
11 unchanged sentences
As a result, fluctuations in foreign currency exchange rates, particularly the CAD and the GBP, may have a material impact on our reported results.
−Removed: For the year ended December 31, 2023, net sales denominated in CAD and GBP both approximated $1.3 billion, for each respective currency.
+Added: For the year ended December 31, 2024, net sales denominated in GBP and CAD approximated $1.4 billion and $1.3 billion, for each respective currency.
We manage our foreign currency exposures through foreign currency forward contracts and net investment hedges.
−Removed: Our EUR foreign-denominated debt is a net investment hedge against our investment in our Europe business in order to hedge a portion of the foreign currency translational impacts.
−Removed: The changes in fair value of the net investment hedge due to the fluctuations in the spot rate are recorded to AOCI.
+Added: Our EUR foreign-denominated debt is designated as a net investment hedge of our investment in a EUR functional currency subsidiary in order to hedge a portion of the foreign currency translational impacts.
+Added: Accordingly, the changes in fair value of the net investment hedge due to the fluctuations in the spot rate are recorded to AOCI until a liquidation or deconsolidation event at which point the accumulated gains and losses will be reclassified into earnings.
Our foreign currency forward contracts manage our exposure related to certain royalty agreements, the purchase of production inputs and imports that are denominated in currencies other than the entity's functional local currency and other foreign currency exchange exposure.
+Added: Table of Content s
The following table includes details of our foreign currency forwards used to hedge our foreign exchange rate risk as well as the impact of a hypothetical 10% adverse change in the related foreign currency exchange rates on the fair value of the foreign currency forwards.
Notional amounts and fair values are presented in USD based on the applicable exchange rate as of December 31, 2024 and December 31, 2023.
−Removed: Approximately 62% of our outstanding foreign currency forwards mature in 2024, 33% mature in 2025 and 5% mature thereafter.
+Added: As of December 31, 2024, approximately 65% of our outstanding foreign currency forwards mature in 2025, 32% mature in 2026 and 3% mature thereafter.
Notional amounts Fair Value
Asset/(Liability) Effect of Adverse Change
−Removed: (in millions) As of December 31, 2023 As of December 31, 2022 As of December 31, 2023 As of December 31, 2022 As of December 31, 2023 As of December 31, 2022
+Added: (In millions)
+Added: As of December 31, 2024 As of December 31, 2023 As of December 31, 2024 As of December 31, 2023 As of December 31, 2024 As of December 31, 2023
Foreign currency denominated fixed rate debt $ 1,175.9 $ 1,260.7 $ (1,212.8) $ (1,248.6) $ (113.6) $ (124.8)
2 unchanged sentences
We are exposed to volatility in commodity prices as we use commodities in the production and distribution of our products.
−Removed: We specifically hedge our exposure to fluctuations in the price of natural gas, aluminum, including surcharges relating to our aluminum exposures, corn, sweeteners, barley and diesel.
−Removed: We utilize market-based derivatives and long-term supplier-based contracts, specifically a combination of purchase orders, long-term supply contracts and over-the-counter financial instruments to mitigate our commodity price risk by reducing price volatility for select commodities that are used in our supply chain.
+Added: We specifically hedge our exposure to fluctuations in the price of natural gas, barley, diesel and aluminum, including surcharges relating to our aluminum exposures.
+Added: We utilize market-based derivatives and supplier-based mechanisms, specifically a combination of purchase orders, long-term supply contracts and over-the-counter financial instruments to mitigate our commodity price risk by reducing price volatility for select commodities that are used in our supply chain.
The following table includes details of our commodity swaps used to hedge commodity price risk as well as the impact of a hypothetical 10% adverse change in the related commodity prices on the fair value of the derivatives.
1 unchanged sentence
Notional amounts and fair values are presented in USD based on the applicable exchange rate as of December 31, 2024 and December 31, 2023.
−Removed: Approximately 68% of commodity swaps mature in 2024, 29% mature in 2025 and 3% mature thereafter.
+Added: As of December 31, 2024, approximately 79% of commodity swaps mature in 2025 and 21% mature in 2026.
Notional amounts Fair Value Asset/(Liability) Effect of Adverse Change
−Removed: (in millions) As of December 31, 2023 As of December 31, 2022 As of December 31, 2023 As of December 31, 2022 As of December 31, 2023 As of December 31, 2022
+Added: (In millions)
+Added: As of December 31, 2024 As of December 31, 2023 As of December 31, 2024 As of December 31, 2023 As of December 31, 2024 As of December 31, 2023
Swaps $ 376.4 $ 653.5 $ 3.7 $ (30.4) $ (36.3) $ (58.1)
+Added: Table of Content s
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.