3 unchanged sentences
In order to manage the risk arising from these exposures, we may utilize a variety of commodity, foreign currency exchange rate and interest rate forward contracts, options and swaps.
−Removed: A discussion of our accounting policies for derivative instruments and further disclosures are provided in note 1 to the audited, consolidated financial statements.
+Added: A discussion of our accounting policy for derivative instruments is provided in note 1 to the audited, consolidated financial statements.
Commodity Price Risk
We are exposed to changes in the prices of refined fuels, principally jet-A, diesel and unleaded gasoline, as well as changes in the price of natural gas and other alternative fuels.
−Removed: Currently, the fuel surcharges that we apply to our domestic and international package and LTL services are the primary means of reducing the risk of adverse fuel price changes.
−Removed: In order to mitigate the impact of fuel surcharges imposed on us by outside carriers, we regularly adjust the rates we charge for our freight brokerage, inter-modal and truckload services.
+Added: Currently, the fuel surcharges that we apply to our domestic and international package services are the primary means of reducing the risk of adverse fuel price changes.
+Added: In order to mitigate the impact of fuel surcharges imposed on us by outside carriers, we regularly adjust the rates we charge for our freight brokerage services.
The majority of our contracts for fuel purchases utilize index-based pricing formulas plus or minus a fixed locational/supplier differential.
6 unchanged sentences
Our most significant foreign currency exposures relate to the Euro, British Pound Sterling, Canadian Dollar, Chinese Renminbi and Hong Kong Dollar.
−Removed: We use forward contracts as well as a combination of purchased and written options to hedge forecasted cash flow currency exposures.
+Added: We may use forward contracts as well as a combination of purchased and written options to hedge forecasted cash flow currency exposures.
These derivative instruments generally cover forecasted foreign currency exposures for periods of 12 to 48 months.
1 unchanged sentence
Interest Rate Risk
−Removed: We have issued debt instruments, including debt associated with finance leases, that accrue expense at fixed and floating rates of interest.
−Removed: We use a combination of interest rate swaps as part of our program to manage the fixed and floating interest rate mix of our total debt portfolio and related overall cost of borrowing.
+Added: We have issued debt instruments and debt associated with finance leases that accrue expense at fixed and floating rates of interest.
+Added: We use interest rate swaps as part of our program to manage the fixed and floating interest rate mix of our total debt portfolio and related overall cost of borrowing.
The notional amount, interest payment and maturity dates of the swaps match the terms of the associated debt.
−Removed: We also utilize forward starting swaps and similar instruments to lock in all or a portion of the borrowing cost of anticipated debt issuances.
+Added: We may also utilize forward starting swaps and similar instruments to lock in all or a portion of the borrowing cost of anticipated debt issuances.
Our floating-rate debt and interest rate swaps subject us to risk resulting from changes in short-term interest rates.
−Removed: For a discussion of the risks associated with the anticipated cessation of LIBOR, see Part I, "Item 1A.
−Removed: Risk Factors - Financial Risks - The proposed phase out of the London Interbank Offer Rate ("LIBOR") could have a material adverse effect on us".
We also are subject to interest rate risk with respect to our pension and postretirement benefit obligations, as changes in interest rates will effectively increase or decrease our liabilities associated with these benefit plans, which also results in changes to the amount of pension and postretirement benefit expense recognized in future periods.
1 unchanged sentence
Additionally, we hold a portfolio of finance receivables that accrue income at fixed and floating rates of interest.
+Added: Sensitivity Analysis
+Added: The following analysis provides quantitative information regarding our exposure to foreign currency exchange rate risk, interest rate risk and equity price risk embedded in our existing financial instruments.
+Added: We utilize valuation models to evaluate the sensitivity of the fair value of financial instruments with exposure to market risk that assume instantaneous, parallel shifts in exchange rates, interest rate yield curves and commodity and equity prices.
+Added: For options and instruments with non-linear returns, models appropriate to the instrument are utilized to determine the impact of market shifts.
UNITED PARCEL SERVICE, INC.
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RESULTS OF OPERATIONS
−Removed: Sensitivity Analysis
−Removed: The following analysis provides quantitative information regarding our exposure to foreign currency exchange risk, interest rate risk and equity price risk embedded in our existing financial instruments.
−Removed: We utilize valuation models to evaluate the sensitivity of the fair value of financial instruments with exposure to market risk that assume instantaneous, parallel shifts in exchange rates, interest rate yield curves and commodity and equity prices.
−Removed: For options and instruments with non-linear returns, models appropriate to the instrument are utilized to determine the impact of market shifts.
There are certain limitations inherent in the sensitivity analyses presented, primarily due to the assumption that foreign currency exchange rates change in a parallel fashion and that interest rates change instantaneously.
18 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.