8 unchanged sentences
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.
−Removed: The majority of our contracts for fuel purchases utilize index-based pricing formulas plus or minus a fixed locational/supplier differential.
−Removed: While many of the indices are aligned, each index may fluctuate at a different pace, driving variability in the prices paid for fuel.
+Added: The majority of our fuel purchases utilize index-based pricing formulas plus or minus a fixed locational/supplier differential.
+Added: While many of the indices are correlated, each index may respond differently to changes in underlying prices, which in turn can drive variability in our costs.
Because of this, our operating results may be affected should the market price of fuel suddenly change by a significant amount or change by amounts that do not result in an adjustment in our fuel surcharges, which can significantly affect our results either positively or negatively in the short-term.
6 unchanged sentences
These derivative instruments generally cover forecasted foreign currency exposures for periods of 12 to 48 months.
−Removed: We also utilize forward contracts to hedge portions of our anticipated cash settlements of intercompany transactions and interest payments on certain debt subject to foreign currency remeasurement.
+Added: We may also utilize forward contracts to hedge portions of our anticipated cash settlements of intercompany transactions and interest payments on certain debt subject to foreign currency remeasurement.
Interest Rate Risk
−Removed: We have issued debt instruments and debt associated with finance leases that accrue expense at fixed and floating rates of interest.
+Added: We have issued debt instruments and have debt associated with finance leases that accrue expense at fixed and floating rates of interest.
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.
2 unchanged sentences
Our floating-rate debt and interest rate swaps subject us to risk resulting from changes in short-term interest rates.
−Removed: 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.
−Removed: We have investments in debt securities, as well as cash-equivalent instruments, some of which accrue income at variable rates of interest.
−Removed: Additionally, we hold a portfolio of finance receivables that accrue income at fixed and floating rates of interest.
+Added: We are also subject to interest rate risk with respect to our defined benefit pension and postretirement medical plan obligations, as changes in interest rates will effectively increase or decrease the obligations associated with these plans.
+Added: This will result in changes to the amount of pension and postretirement benefit expense recognized in future periods and may also result in us being required to make contributions to the plans.
+Added: We hold investments in debt securities, as well as cash-equivalent instruments, some of which accrue income at variable rates of interest.
Sensitivity Analysis
8 unchanged sentences
In addition, the analyses are unable to reflect the complex market reactions that normally would arise from the market shifts modeled.
−Removed: While this is our best estimate of the impact of the specified interest rate scenarios, these estimates should not be viewed as forecasts.
+Added: While this is our best estimate of the impact of the specified scenarios, these estimates should not be viewed as forecasts.
We adjust the fixed and floating interest rate mix of our interest-rate-sensitive assets and liabilities in response to changes in market conditions.
Additionally, changes in the fair value of foreign currency derivatives and commodity derivatives are offset by changes in the cash flows of the underlying hedged foreign currency and commodity transactions.
−Removed: Shock-Test Result
−Removed: As of December 31,
+Added: Shock-Test Result as of
(in millions) 2022 2021
5 unchanged sentences
Interest Rate Derivatives (2)
+Added: Change in Annual Interest Income:
+Added: Marketable Securities (3)
(1) The potential change in fair value from a hypothetical 10% weakening of the U.S.
−Removed: Dollar against local currency exchange rates across all maturities.
+Added: Dollar against foreign currency exchange rates across all maturities.
(2) The potential change in annual interest expense resulting from a hypothetical 100 basis point increase in short-term interest rates, applied to our variable rate debt and swap instruments (excluding hedges of anticipated debt issuances).
−Removed: The sensitivity of our pension and postretirement benefit obligations to changes in interest rates is quantified in Critical Accounting Estimates .
−Removed: The sensitivity in the fair value and interest income of our finance receivables and marketable securities due to changes in interest rates was not material as of December 31, 2021 or 2020.
+Added: (3) The potential change in interest income resulting from a hypothetical 100 basis point increase in short-term interest rates, applied to our variable rate investment holdings.
+Added: The sensitivity of our defined benefit pension and postretirement plan obligations to changes in interest rates is quantified in "Critical Accounting Estimates".
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.