6 unchanged sentences
With the exception of normal purchases and normal sales that are expected to result in physical delivery, we record these positions at fair value, and the unrealized gains and losses are reported in earnings at each reporting date.
−Removed: The sensitivity analyses presented below are the measures of potential losses of fair value resulting from hypothetical changes in market prices related to commodities.
+Added: The sensitivity analyses presented below are the measures of potential changes in fair value resulting from hypothetical changes in market prices related to commodities.
Sensitivity analyses do not consider the actions we may take to mitigate our exposure to changes, nor do they consider the effects such hypothetical adverse changes may have on overall economic activity.
7 unchanged sentences
We generally do not hedge anticipated transactions beyond 18 months.
−Removed: The following table presents a sensitivity analysis resulting from a hypothetical change of 10% in market prices as of January 2, 2021, and October 3, 2020, on the fair value of open positions.
+Added: The following table presents a sensitivity analysis resulting from a hypothetical change of 10% in market prices as of April 3, 2021, and October 3, 2020, on the fair value of open positions.
The fair value of such positions is a summation of the fair values calculated for each commodity by valuing each net position at quoted forward and option prices.
1 unchanged sentence
Effect of 10% change in fair value in millions
−Removed: January 2, 2021 October 3, 2020
+Added: April 3, 2021 October 3, 2020
Live Cattle $ 49 $ 24
2 unchanged sentences
Interest Rate Risk
−Removed: At January 2, 2021, we had variable rate debt of $1,528 million with a weighted average interest rate of 1.8%.
−Removed: A hypothetical 10% increase in interest rates effective at January 2, 2021, and October 3, 2020, would not have a significant effect on variable interest expense.
+Added: At April 3, 2021, we had variable rate debt of $525 million with a weighted average interest rate of 1.0%.
+Added: A hypothetical 10% increase in interest rates effective at April 3, 2021, and October 3, 2020, would not have a significant effect on variable interest expense.
Additionally, changes in interest rates impact the fair value of our fixed-rate debt.
−Removed: At January 2, 2021, we had fixed-rate debt of $9,829 million with a weighted average interest rate of 4.4%.
+Added: At April 3, 2021, we had fixed-rate debt of $9,839 million with a weighted average interest rate of 4.4%.
Market risk for fixed-rate debt is estimated as the potential increase in fair value, resulting from a hypothetical 10% decrease in interest rates.
−Removed: A hypothetical 10% decrease in interest rates would have increased the fair value of our fixed-rate debt by approximately $133 million at January 2, 2021, and $108 million at October 3, 2020.
+Added: A hypothetical 10% decrease in interest rates would have increased the fair value of our fixed-rate debt by approximately $177 million at April 3, 2021, and $133 million at October 3, 2020.
The fair values of our debt were estimated based on quoted market prices and/or published interest rates.
8 unchanged sentences
We periodically enter into foreign exchange forward and option contracts to hedge some portion of our foreign currency exposure.
−Removed: A hypothetical 10% change in foreign exchange rates related to the foreign exchange forward and option contracts would have had a $44 million and $54 million impact on pretax income at January 2, 2021, and October 3, 2020 respectively.
+Added: A hypothetical 10% change in foreign exchange rates related to the foreign exchange forward and option contracts would have had an $11 million and $54 million impact on pretax income at April 3, 2021, and October 3, 2020 respectively.
Concentration of Credit Risk
−Removed: Refer to our market risk disclosures set forth in our Annual Report filed on Form 10-K and subsequent amendment on Form 10-K/A for the fiscal year ended October 3, 2020, for a detailed discussion of quantitative and qualitative disclosures about concentration of credit risks, as these risk disclosures have not changed significantly from our Annual Report on Form 10-K for the fiscal year ended October 3, 2020.
+Added: Refer to our market risk disclosures set forth in our Annual Report filed on Form 10-K and subsequent amendment on Form 10-K/A for the fiscal year ended October 3, 2020, for a detailed discussion of quantitative and qualitative disclosures about concentration of credit risks, as these risk disclosures have not changed significantly from our Annual Report on Form 10-K for the fiscal year ended October 3, 2020, as amended.
EBITDA Reconciliations
A reconciliation of net income to EBITDA is as follows (in millions, except ratio data):
−Removed: Three Months Ended Fiscal Year Ended Twelve Months Ended
−Removed: January 2, 2021 December 28, 2019 October 3, 2020 January 2, 2021
+Added: Six Months Ended Fiscal Year Ended Twelve Months Ended
+Added: April 3, 2021 March 28, 2020 October 3, 2020 April 3, 2021
Net income $ 949 $ 888 $ 2,071 $ 2,132
9 unchanged sentences
Total net debt $ 9,919 $ 9,487
−Removed: $ 9,919 $ 8,951
Ratio Calculations:
1 unchanged sentence
Net debt/EBITDA 2.3x 2.2x
−Removed: (a) Excludes the amortization of debt issuance and debt discount expense of $3 million for the three months ended January 2, 2021 and December 28, 2019 and $14 million for the fiscal year ended October 3, 2020 and the twelve months ended January 2, 2021 as it is included in interest expense.
+Added: (a) Excludes the amortization of debt issuance and debt discount expense of $9 millio n for the six months ended April 3, 2021, $5 million for the six months ended March 28, 2020, $14 million for the fiscal year ended October 3, 2020, and $18 million for the twelve months ended April 3, 2021 as it is included in interest expense.
EBITDA represents net income, net of interest, income tax expense, depreciation and amortization.
9 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.