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 December 31, 2022, and October 1, 2022, 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 1, 2023, 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: December 31, 2022 October 1, 2022
+Added: April 1, 2023 October 1, 2022
Live Cattle $ 25 $ 14
2 unchanged sentences
Interest Rate Risk
−Removed: At December 31, 2022, we had variable rate debt of $46 million with a weighted average interest rate of 6.1%.
−Removed: 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.
+Added: At April 1, 2023, we had variable rate debt of $624 million with a weighted average interest rate of 5.5%.
+Added: A hypothetical 10% increase in interest rates effective at April 1, 2023, 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 December 31, 2022, we had fixed-rate debt of $8,303 million with a weighted average interest rate of 4.5%.
+Added: At April 1, 2023, we had fixed-rate debt of $8,306 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 $218 million at December 31, 2022 and $215 million at October 1, 2022.
+Added: A hypothetical 10% change in interest rates would have changed the fair value of our fixed-rate debt by approximately $198 million at April 1, 2023 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 $16 million and $25 million impact on pretax income at December 31, 2022, and October 1, 2022 respectively.
+Added: A hypothetical 10% change in foreign exchange rates related to the foreign exchange forward and option contracts would have had a $14 million and $25 million impact on pretax income at April 1, 2023, and October 1, 2022 respectively.
Concentration of Credit Risk
2 unchanged sentences
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: December 31, 2022 January 1, 2022 October 1, 2022 December 31, 2022
+Added: Six Months Ended Fiscal Year Ended Twelve Months Ended
+Added: April 1, 2023 April 2, 2022 October 1, 2022 April 1, 2023
Net income $ 229 $ 1,959 $ 3,249 $ 1,519
12 unchanged sentences
Net debt/EBITDA 1.3x 2.4x
−Removed: (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.
+Added: (a) Excludes the amortization of debt issuance and debt discount expense of $5 million for the six months ended April 1, 2023 and April 2, 2022 and $11 million for the fiscal year ended October 1, 2022 and the twelve months ended April 1, 2023 as it is included in interest expense.
EBITDA represents net income, net of interest, income tax expense, depreciation and amortization.
1 unchanged sentence
EBITDA and net debt to EBITDA are presented as supplemental financial measurements in the evaluation of our business.
−Removed: We believe the presentation of these financial measures helps investors to assess our operating performance from period to period, including our ability to generate earnings sufficient to service our debt, and enhances understanding of our financial performance and highlights operational trends.
+Added: We believe the presentation of these financial measures helps management and investors to assess our operating performance from period to period, including our ability to generate earnings sufficient to service our debt, and enhances understanding of our financial performance and highlights operational trends.
These measures are widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies;
5 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.