10 unchanged sentences
Commodities Risk
−Removed: We purchase certain commodities, such as grains and livestock in the course of normal operations.
+Added: We purchase certain commodities, such as grains and livestock, during normal operations.
As part of our commodity risk management activities, we use derivative financial instruments, primarily forwards and options, to reduce the effect of changing prices and as a mechanism to procure the underlying commodity.
3 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 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 December 31, 2022, and October 1, 2022, 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 2, 2022 October 2, 2021
+Added: December 31, 2022 October 1, 2022
Live Cattle $ 20 $ 14
2 unchanged sentences
Interest Rate Risk
−Removed: At July 2, 2022, we had variable rate debt of $10 million with a weighted average interest rate of 3.0%.
−Removed: 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.
+Added: At December 31, 2022, we had variable rate debt of $46 million with a weighted average interest rate of 6.1%.
+Added: A hypothetical 10% increase in interest rates effective at December 31, 2022, and October 1, 2022, 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 2, 2022, we had fixed-rate debt of $8,318 million with a weighted average interest rate of 4.5%.
+Added: At December 31, 2022, we had fixed-rate debt of $8,303 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% 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.
+Added: A hypothetical 10% change in interest rates would have changed the fair value of our fixed-rate debt by approximately $218 million at December 31, 2022 and $215 million at October 1, 2022.
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 July 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 $16 million and $25 million impact on pretax income at December 31, 2022, and October 1, 2022 respectively.
Concentration of Credit Risk
Refer to our market risk disclosures set forth in our Annual Report filed on Form 10-K for the fiscal year ended October 1, 2022, for a detailed discussion of quantitative and qualitative disclosures about concentration of credit risks.
−Removed: EBITDA Reconciliations
+Added: EBITDA Non-GAAP 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 2, 2022 July 3, 2021 October 2, 2021 July 2, 2022
+Added: Three Months Ended Fiscal Year Ended Twelve Months Ended
+Added: December 31, 2022 January 1, 2022 October 1, 2022 December 31, 2022
Net income $ 320 $ 1,126 $ 3,249 $ 2,443
12 unchanged sentences
Net debt/EBITDA 1.3x 1.6x
−Removed: (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.
+Added: (a) Excludes the amortization of debt issuance and debt discount expense of $2 million for the three months ended December 31, 2022 and January 1, 2022 and $11 million for the fiscal year ended October 1, 2022 and December 31, 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.