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 July 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 January 1, 2022, and October 2, 2021, 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: July 3, 2021 October 3, 2020
+Added: January 1, 2022 October 2, 2021
Live Cattle $ 37 $ 42
2 unchanged sentences
Interest Rate Risk
−Removed: At July 3, 2021, we had variable rate debt of $512 million with a weighted average interest rate of 0.9%.
−Removed: 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.
+Added: At January 1, 2022, we had variable rate debt of $17 million with a weighted average interest rate of 3.0%.
+Added: A hypothetical 10% increase in interest rates effective at January 1, 2022, and October 2, 2021, 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 July 3, 2021, we had fixed-rate debt of $9,840 million with a weighted average interest rate of 4.4%.
+Added: At January 1, 2022, we had fixed-rate debt of $9,347 million with a weighted average interest rate of 4.5%.
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 $156 million at July 3, 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 $154 million at January 1, 2022 and October 2, 2021.
The fair values of our debt were estimated based on quoted market prices and/or published interest rates.
3 unchanged sentences
See Part II, Item 8, Notes to Consolidated Financial Statements, Note 16:
−Removed: Pensions and Other Postretirement Benefits in our Annual Report on Form 10-K and subsequent amendment on Form 10-K/A for the fiscal year ended October 3, 2020, for additional information.
+Added: Pensions and Other Postretirement Benefits in our Annual Report on Form 10-K for the fiscal year ended October 2, 2021, for additional information.
Foreign Currency Risk
2 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 $12 million and $54 million impact on pretax income at July 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 $27 million and $13 million impact on pretax income at January 1, 2022, and October 2, 2021 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, as amended.
+Added: Refer to our market risk disclosures set forth in our Annual Report filed on Form 10-K for the fiscal year ended October 2, 2021, for a detailed discussion of quantitative and qualitative disclosures about concentration of credit risks.
EBITDA Reconciliations
A reconciliation of net income to EBITDA is as follows (in millions, except ratio data):
−Removed: Nine Months Ended Fiscal Year Ended Twelve Months Ended
−Removed: July 3, 2021 June 27, 2020 October 3, 2020 July 3, 2021
+Added: Three Months Ended Fiscal Year Ended Twelve Months Ended
+Added: January 1, 2022 January 2, 2021 October 2, 2021 January 1, 2022
Net income $ 1,126 $ 472 $ 3,060 $ 3,714
12 unchanged sentences
Net debt/EBITDA 1.2x 1.0x
−Removed: (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.
+Added: (a) Excludes the amortization of debt issuance and debt discount expense of $2 million for the three months ended January 1, 2022, $3 million for the three months ended January 2, 2021, $19 million for the fiscal year ended October 2, 2021, and $18 million for the twelve months ended January 1, 2022 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.