4 unchanged sentences
It is our general policy to enter into interest rate, foreign currency and other derivative transactions only to the extent necessary to achieve our desired objectives in optimizing exposure to various market risks.
−Removed: Our objectives include maintaining a mix of fixed and variable rate debt to lower borrowing costs within reasonable risk parameters and to protect against earnings and cash flow
−Removed: volatility resulting from changes in market conditions.
+Added: Our objectives include maintaining a mix of fixed and variable rate debt to lower borrowing costs within reasonable risk parameters and to protect against earnings and cash flow volatility resulting from changes in market conditions.
We do not hedge our market risk exposure in a manner that would completely eliminate the effect of changes in interest rates and foreign exchange rates on our earnings.
11 unchanged sentences
The interest rates on our existing long-term debt obligations are unaffected by changes to our credit ratings.
−Removed: dollar London Inter-Bank Offered Rate (LIBOR) rates ceased publication on June 30, 2023.
−Removed: Outstanding debt and derivative transactions that were benchmarked to LIBOR were repaid or transitioned to interest rates that are linked to the Secured Overnight Financing Rate as the benchmark rate by June 30, 2023.
−Removed: There was not a significant impact to our financial position given our current mix of variable and fixed-rate debt and taking into account the impact of our interest rate hedging.
The table that follows summarizes the fair values of our long-term debt, including current maturities, and interest rate swap derivatives as of December 31, 2024 and 2023.
11 unchanged sentences
These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances.
−Removed: At December 31, 2023, the fair value of the liability of these contracts was $4.5 billion.
−Removed: At December 31, 2022, the fair value of the liability of these contracts was $4.6 billion.
−Removed: At both December 31, 2023 and 2022, the total notional amount of the interest rate swaps was $26.1 billion.
+Added: At December 31, 2024 and 2023, the fair value of the liability of these contracts was $5.3 billion and $4.5 billion, respectively.
+Added: At December 31, 2024 and 2023, the total notional amount of the interest rate swaps was $24.0 billion and $26.1 billion, respectively.
Foreign Currency Risk
8 unchanged sentences
dollars, as well as to mitigate the impact of foreign currency transaction gains or losses.
−Removed: On March 31, 2022, we voluntarily elected to de-designate our cross currency swaps previously designated as cash flow hedges and re-designated the swaps as fair value hedges.
−Removed: executed cross currency swaps are also designated as fair value hedges.
The fair value of the asset of these contracts was $500 million and $762 million at December 31, 2024 and 2023, respectively.
3 unchanged sentences
We also have foreign exchange forwards which we use as an economic hedge but for which we have elected not to apply hedge accounting.
−Removed: We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.
+Added: We entered into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.
At both December 31, 2024 and 2023, the fair value of the asset and liability of these contracts was insignificant.
−Removed: At December 31, 2023 and 2022, the total notional amount of the foreign exchange forwards was $1.1 billion and $920 million, respectively.
+Added: At December 31, 2024 and 2023, the total notional amount of the foreign exchange forwards was $620 million and $1.1 billion, respectively.
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.