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 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 December 30, 2023, and September 30, 2023, 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 1, 2023 October 1, 2022
+Added: December 30, 2023 September 30, 2023
Live Cattle $ 13 $ 68
2 unchanged sentences
Interest Rate Risk
−Removed: At July 1, 2023, we had variable rate debt of $1,018 million with a weighted average interest rate of 6.3%.
−Removed: 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.
+Added: At December 30, 2023, we had variable rate debt of $1,769 million with a weighted average interest rate of 6.9%.
+Added: A hypothetical 10% increase in interest rates effective at December 30, 2023 would increase annualized interest expense by approximately $12 million.
Additionally, changes in interest rates impact the fair value of our fixed-rate debt.
−Removed: At July 1, 2023, we had fixed-rate debt of $8,302 million with a weighted average interest rate of 4.5%.
+Added: At December 30, 2023, we had fixed-rate debt of $7,909 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 $205 million at July 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 $204 million at December 30, 2023 and $215 million at September 30, 2023.
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 15:
−Removed: Pensions and Other Postretirement Benefits in our Annual Report on Form 10-K for the fiscal year ended October 1, 2022, for additional information.
+Added: Pensions and Other Postretirement Benefits in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, 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 a $18 million and $25 million impact on pretax income at July 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 $24 million and $17 million impact on pretax income at December 30, 2023, and September 30, 2023 respectively.
Concentration of Credit Risk
−Removed: 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 Non-GAAP Reconciliations
−Removed: 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 1, 2023 July 2, 2022 October 1, 2022 July 1, 2023
−Removed: Net income (loss) $ (206) $ 2,712 $ 3,249 $ 331
−Removed: Interest income (22) (10) (17) (29)
−Removed: Interest expense 262 282 365 345
−Removed: Income tax expense 84 771 900 213
−Removed: Depreciation 762 699 945 1,008
−Removed: Amortization (a) 174 186 246 234
−Removed: EBITDA $ 1,054 $ 4,640 $ 5,688 $ 2,102
−Removed: Total gross debt $ 8,321 $ 9,320
−Removed: Cash and cash equivalents (1,031) (699)
−Removed: Short-term investments (1) (7)
−Removed: Total net debt $ 7,289 $ 8,614
−Removed: Ratio Calculations:
−Removed: Gross debt/EBITDA 1.5x 4.4x
−Removed: Net debt/EBITDA 1.3x 4.1x
−Removed: (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.
−Removed: EBITDA represents net income (loss), net of interest, income tax expense, depreciation and amortization.
−Removed: Net debt to EBITDA represents the ratio of our debt, net of cash and short-term investments, to EBITDA.
−Removed: 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 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.
−Removed: These measures are widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies;
−Removed: however, the measurements of EBITDA and net debt to EBITDA may not be comparable to those of other companies, which limits their usefulness as comparative measures.
−Removed: EBITDA and net debt to EBITDA are not measures required by or calculated in accordance with GAAP and should not be considered as substitutes for net income or any other measure of financial performance reported in accordance with GAAP or as a measure of operating cash flow or liquidity.
−Removed: EBITDA is a useful tool for assessing, but is not a reliable indicator of, our ability to generate cash to service our debt obligations because certain of the items added to net income to determine EBITDA involve outlays of cash.
−Removed: As a result, actual cash available to service our debt obligations will be different from EBITDA.
−Removed: Investors should rely primarily on our GAAP results, and use non-GAAP financial measures only supplementally, in making investment decisions.
+Added: Refer to our market risk disclosures set forth in our Annual Report filed on Form 10-K for the fiscal year ended September 30, 2023, for a detailed discussion of quantitative and qualitative disclosures about concentration of credit risks.
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.