3 unchanged sentences
If a derivative instrument is accounted for as a hedge, depending on the nature of the hedge, changes in the fair value of the instrument either will be offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings, or be recognized in other comprehensive income (loss) until the hedged item is recognized in earnings.
−Removed: The ineffective portion of an instrument’s change in fair value is recognized immediately.
Further, we hold certain positions, primarily in grain and livestock futures that either do not meet the criteria for hedge accounting or are not designated as hedges.
10 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 June 29, 2024, and September 30, 2023, 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 28, 2024, and September 28, 2024, 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: June 29, 2024 September 30, 2023
+Added: December 28, 2024 September 28, 2024
Live Cattle $ 26 $ 11
2 unchanged sentences
Interest Rate Risk
−Removed: At June 29, 2024, we had variable rate debt of $1,527 million with a weighted average interest rate of 6.8%.
−Removed: A hypothetical 10% increase in interest rates effective at June 29, 2024 would increase annualized interest expense by approximately $10 million.
+Added: At December 28, 2024, we had variable rate debt of $1,532 million with a weighted average interest rate of 6.7%.
+Added: A hypothetical 10% increase in interest rates effective at December 28, 2024 would increase annualized interest expense by approximately $10 million.
Additionally, changes in interest rates impact the fair value of our fixed-rate debt.
−Removed: At June 29, 2024, we had fixed-rate debt of $9,494 million with a weighted average interest rate of 4.7%.
+Added: At December 28, 2024, we had fixed-rate debt of $8,274 million with a weighted average interest rate of 4.8%.
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 $244 million at June 29, 2024 and $215 million at September 30, 2023.
+Added: A hypothetical 10% change in interest rates would have changed the fair value of our fixed-rate debt by approximately $257 million at December 28, 2024 and $230 million at September 28, 2024.
The fair values of our debt were estimated based on quoted market prices and/or published interest rates.
6 unchanged sentences
We have foreign exchange exposure from fluctuations in foreign currency exchange rates primarily as a result of certain receivable and payable balances.
−Removed: The primary currencies we have exposure to are the Australian dollar, the Brazilian real, the British pound sterling, the Canadian dollar, the Chinese renminbi, the European euro, the Malaysian ringgit, the Mexican peso, and the Thai baht.
+Added: The primary currencies we have exposure to are the Brazilian real, the British pound sterling, the Canadian dollar, the Chinese renminbi, the European euro, the Malaysian ringgit, the Mexican peso, and the Thai baht.
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 $27 million and $17 million impact on pretax income at June 29, 2024, and September 30, 2023 respectively.
+Added: A hypothetical 10% change in foreign exchange rates related to the foreign exchange forward and option contracts would have had a $21 million and $25 million impact on pretax income at December 28, 2024, and September 28, 2024 respectively.
Concentration of Credit Risk
1 unchanged sentence
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.