16 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 April 3, 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 July 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: April 3, 2021 October 3, 2020
+Added: July 3, 2021 October 3, 2020
Live Cattle $ 40 $ 24
2 unchanged sentences
Interest Rate Risk
−Removed: At April 3, 2021, we had variable rate debt of $525 million with a weighted average interest rate of 1.0%.
−Removed: 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.
+Added: At July 3, 2021, we had variable rate debt of $512 million with a weighted average interest rate of 0.9%.
+Added: A hypothetical 10% increase in interest rates effective at July 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 April 3, 2021, we had fixed-rate debt of $9,839 million with a weighted average interest rate of 4.4%.
+Added: At July 3, 2021, we had fixed-rate debt of $9,840 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 $177 million at April 3, 2021, and $133 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 $156 million at July 3, 2021, and $108 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 an $11 million and $54 million impact on pretax income at April 3, 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 $12 million and $54 million impact on pretax income at July 3, 2021, and October 3, 2020 respectively.
Concentration of Credit Risk
2 unchanged sentences
A reconciliation of net income to EBITDA is as follows (in millions, except ratio data):
−Removed: Six Months Ended Fiscal Year Ended Twelve Months Ended
−Removed: April 3, 2021 March 28, 2020 October 3, 2020 April 3, 2021
+Added: Nine Months Ended Fiscal Year Ended Twelve Months Ended
+Added: July 3, 2021 June 27, 2020 October 3, 2020 July 3, 2021
Net income $ 1,702 $ 1,414 $ 2,071 $ 2,359
12 unchanged sentences
Net debt/EBITDA 2.3x 1.9x
−Removed: (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.
+Added: (a) Excludes the amortization of debt issuance and debt discount expense of $11 million for the nine months ended July 3, 2021, $10 million for the nine months ended June 27, 2020, $14 million for the fiscal year ended October 3, 2020, and $15 million for the twelve months ended July 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.