5 unchanged sentences
Such exposures result from purchases, sales, cash and intercompany loans that are denominated in currencies other than the functional currencies of the respective operations.
−Removed: The currency-exchange contracts principally hedge transactions denominated in euro, Canadian dollars, British pounds sterling, Swedish krona, Singapore dollars, Hong Kong dollars and Swiss franc.
+Added: The currency exchange contracts principally hedge transactions denominated in euro, Canadian dollars, British pounds sterling, Swiss franc, Swedish krona, Singapore dollars, and Hong Kong dollars.
Income and losses arising from these derivative contracts are recognized as offsets to losses and income resulting from the underlying exposure being hedged.
12 unchanged sentences
If interest rates were to increase by 100 basis points, the fair value of the company’s cross-currency interest rate swaps at December 31, 2025 would increase by approximately $0.62 billion.
+Added: In addition, interest rate changes would result in a change in the company’s interest expense due to variable-rate debt instruments including swap arrangements.
+Added: In 2025, a 100 basis point increase in interest rates on the swap arrangements and variable-rate debt would have increased the company’s annual pre-tax interest expense by approximately $3 million.
Currency Exchange Rates
2 unchanged sentences
The company’s investment in international subsidiaries is sensitive to fluctuations in currency exchange rates.
−Removed: The functional currencies of the company’s international subsidiaries are principally denominated in British pounds sterling, euro, Swedish krona, Canadian dollars, Norwegian kroner and Swiss franc.
−Removed: The effect of a change in the period ending currency exchange rates on the company’s net investment in international subsidiaries is reflected in the “accumulated other comprehensive items” component of shareholders’ equity.
+Added: The functional currencies of the company’s international subsidiaries are principally denominated in British pounds sterling, euro, Swedish krona, Canadian dollars and Norwegian kroner.
+Added: The effect of a change in the period ending currency exchange rates on the company’s net investment in international subsidiaries is reflected in the “accumulated other comprehensive income/(loss)” component of shareholders’ equity.
The company also uses foreign currency-denominated debt to partially hedge its net investments in foreign operations against adverse movements in exchange rates.
3 unchanged sentences
The fair value of forward currency exchange contracts is the estimated amount that the company would pay or receive upon termination of the contract, taking into account the change in currency exchange rates.
−Removed: A 10% depreciation in year-end 2024 non-functional currency exchange rates related to the company’s contracts would result in an unrealized loss on forward currency-exchange contracts of $32 million.
−Removed: A 10% appreciation in year-end 2024 non-functional currency exchange rates related to the company’s contracts would result in an additional unrealized gain on forward currency-exchange contracts of $37 million.
+Added: A 10% depreciation in year-end 2025 non-functional currency exchange rates related to the company’s contracts would result in an additional unrealized gain on forward currency exchange contracts of $49 million.
+Added: A 10% appreciation in year-end 2025 non-functional currency exchange rates related to the company’s contracts would result in an additional unrealized loss on forward currency exchange contracts of $40 million.
The unrealized gains or losses on forward currency exchange contracts resulting from changes in currency exchange rates are expected to approximately offset losses or gains on the exposures being hedged.
3 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.