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 2, 2022, and October 2, 2021, 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 2, 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: April 2, 2022 October 2, 2021
+Added: July 2, 2022 October 2, 2021
Live Cattle $ 23 $ 42
2 unchanged sentences
Interest Rate Risk
−Removed: At April 2, 2022, we had variable rate debt of $8 million with a weighted average interest rate of 3.0%.
−Removed: A hypothetical 10% increase in interest rates effective at April 2, 2022, and October 2, 2021, would not have a significant effect on variable interest expense.
+Added: At July 2, 2022, we had variable rate debt of $10 million with a weighted average interest rate of 3.0%.
+Added: A hypothetical 10% increase in interest rates effective at July 2, 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 April 2, 2022, we had fixed-rate debt of $8,341 million with a weighted average interest rate of 4.5%.
+Added: At July 2, 2022, we had fixed-rate debt of $8,318 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 $180 million at April 2, 2022 and $154 million at October 2, 2021.
+Added: A hypothetical 10% change in interest rates would have changed the fair value of our fixed-rate debt by approximately $192 million at July 2, 2022 and $154 million at October 2, 2021.
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 $22 million and $13 million impact on pretax income at April 2, 2022, and October 2, 2021 respectively.
+Added: A hypothetical 10% change in foreign exchange rates related to the foreign exchange forward and option contracts would have had a $22 million and $13 million impact on pretax income at July 2, 2022, and October 2, 2021 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 2, 2022 April 3, 2021 October 2, 2021 April 2, 2022
+Added: Nine Months Ended Fiscal Year Ended Twelve Months Ended
+Added: July 2, 2022 July 3, 2021 October 2, 2021 July 2, 2022
Net income $ 2,712 $ 1,702 $ 3,060 $ 4,070
12 unchanged sentences
Net debt/EBITDA 1.2x 1.1x
−Removed: (a) Excludes the amortization of debt issuance and debt discount expense of $5 million for the six months ended April 2, 2022, $9 million for the six months ended April 3, 2021, $19 million for the fiscal year ended October 2, 2021, and $15 million for the twelve months ended April 2, 2022 as it is included in interest expense.
+Added: (a) Excludes the amortization of debt issuance and debt discount expense of $7 million for the nine months ended July 2, 2022, $11 million for the nine months ended July 3, 2021, $19 million for the fiscal year ended October 2, 2021, and $15 million for the twelve months ended July 2, 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.