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 1, 2023, 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 July 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: April 1, 2023 October 1, 2022
+Added: July 1, 2023 October 1, 2022
Live Cattle $ 65 $ 14
2 unchanged sentences
Interest Rate Risk
−Removed: At April 1, 2023, we had variable rate debt of $624 million with a weighted average interest rate of 5.5%.
−Removed: 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.
+Added: At July 1, 2023, we had variable rate debt of $1,018 million with a weighted average interest rate of 6.3%.
+Added: A hypothetical 10% increase in interest rates effective at July 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 April 1, 2023, we had fixed-rate debt of $8,306 million with a weighted average interest rate of 4.5%.
+Added: At July 1, 2023, we had fixed-rate debt of $8,302 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 $198 million at April 1, 2023 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 $205 million at July 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 $14 million and $25 million impact on pretax income at April 1, 2023, 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 $18 million and $25 million impact on pretax income at July 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: Six Months Ended Fiscal Year Ended Twelve Months Ended
−Removed: April 1, 2023 April 2, 2022 October 1, 2022 April 1, 2023
−Removed: Net income $ 229 $ 1,959 $ 3,249 $ 1,519
+Added: Nine Months Ended Fiscal Year Ended Twelve Months Ended
+Added: July 1, 2023 July 2, 2022 October 1, 2022 July 1, 2023
+Added: Net income (loss) $ (206) $ 2,712 $ 3,249 $ 331
Interest income (22) (10) (17) (29)
11 unchanged sentences
Net debt/EBITDA 1.3x 4.1x
−Removed: (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.
−Removed: EBITDA represents net income, net of interest, income tax expense, depreciation and amortization.
+Added: (a) Excludes the amortization of debt issuance and debt discount expense of $7 million for the nine months ended July 1, 2023 and July 2, 2022, and $11 million for the fiscal year ended October 1, 2022, and the twelve months ended July 1, 2023 as it is included in interest expense.
+Added: EBITDA represents net income (loss), net of interest, income tax expense, depreciation and amortization.
Net debt to EBITDA represents the ratio of our debt, net of cash and short-term investments, to EBITDA.
8 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.