4 unchanged sentences
We are exposed to the impact of interest rate changes primarily through our actual and potential borrowing activities.
−Removed: During the year ended December 31, 2021, we entered into a new $2.5 billion multicurrency revolving credit facility, replacing the existing $2.5 billion credit agreement.
−Removed: We have the capacity to initially borrow up to $2.5 billion, and upon the closing of the proposed combination transaction with WarnerMedia and subject to certain conditions, the available commitments will increase by $3.5 billion, to an aggregate amount not to exceed $6 billion.
+Added: During the year ended December 31, 2022, we had access to a $6.0 billion multicurrency revolving credit facility.
We had no outstanding borrowings as of December 31, 2022.
1 unchanged sentence
The interest rate on borrowings under the revolving credit facility is based on a floating rate based on the applicable currency of the borrowing plus a margin.
−Removed: The revolving credit facility matures in June 2026 and the option for up to two additional 364-day renewal periods.
−Removed: As of December 31, 2021, we had outstanding debt with a book value of $15.2 billion under various public senior notes with fixed interest rates.
+Added: The revolving credit facility matures in June 2026, with the option for up to two additional 364-day renewal periods.
+Added: As of December 31, 2022, we had $44.8 billion of fixed-rate senior notes, at par value.
Our current objectives in managing exposure to interest rate changes are to limit the impact of interest rates on earnings and cash flows.
−Removed: To achieve these objectives, we may enter into variable interest rate swaps or swaptions, effectively converting fixed rate borrowings to variable rate borrowings indexed to LIBOR in order to reduce the amount of interest paid.
−Removed: We may also enter into fixed rate forward starting swaps to limit the impact of volatility in interest rates for future issuances of fixed rate debt.
−Removed: As of December 31, 2021, we had entered into forward starting interest rate swap agreements with a notional value of $2 billion for the future issuances of fixed rate debt and a combination of swaption collars, purchase payer swaptions and interest rate swaps with a combined notional value of $15 billion for the expected issuances of debt associated with the upcoming WarnerMedia merger.
−Removed: As of December 31, 2021, the fair value of our outstanding public senior notes was $17.2 billion.
+Added: To achieve these objectives, we may enter into derivative instruments, effectively converting fixed rate borrowings to variable rate borrowings indexed to benchmark interest rates in order to reduce the amount of interest paid, or to limit the impact of volatility in interest rates on future issuances of fixed rate debt.
+Added: (See Note 13 to the accompanying consolidated financial statements.)
+Added: As of December 31, 2022, the fair value of our outstanding senior notes, including accrued interest, was $38.0 billion.
The fair value of our long-term debt may vary as a result of market conditions and other factors.
5 unchanged sentences
The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows, and future earnings.
−Removed: Our International Networks segment operates from hubs in EMEA, Latin America and Asia with net earnings reinvested locally and working capital requirements met from existing liquid funds.
−Removed: To the extent such funds are not sufficient to meet working capital requirements, drawdowns in the appropriate local currency are available from intercompany borrowings or drawdowns from our revolving credit facility.
+Added: We operate from hubs in EMEA, Latin America, and Asia, with net earnings reinvested locally and working capital requirements met from existing liquid funds.
+Added: To the extent such funds are not sufficient to meet working capital requirements, drawdowns in the appropriate local currency are available from intercompany borrowings or from our revolving credit facility.
The earnings of certain international operations are expected to be reinvested in those businesses indefinitely.
4 unchanged sentences
We also record realized foreign currency transaction gains and losses upon settlement of the transactions.
−Removed: Moreover, we will experience fluctuations in our revenues, costs and expenses solely as a result of changes in foreign currency exchange rates.
+Added: Moreover, we will experience fluctuations in our revenues and expenses solely as a result of changes in foreign currency exchange rates.
We also are exposed to unfavorable and potentially volatile fluctuations of the U.S.
4 unchanged sentences
dollar against any foreign functional currency of one of our operating subsidiaries will cause us to experience unrealized foreign currency translation gains or losses with respect to amounts already invested in such foreign currencies.
−Removed: Accordingly, we may experience a negative impact on our net income, other comprehensive income (loss) and equity with respect to our holdings solely as a result of changes in foreign currency.
−Removed: The majority of our foreign currency exposure is to the Euro, Polish zloty, and the British Pound.
−Removed: We may enter into spot, forward and option contracts that change in value as foreign currency exchange rates change to hedge certain exposures associated with affiliate revenue, the cost for producing or acquiring content, certain intercompany transactions, or in connection with forecasted business combinations.
+Added: Accordingly, we may experience a negative impact on our net income, other comprehensive (loss) income and equity with respect to our holdings solely as a result of changes in foreign currency.
+Added: The majority of our foreign currency exposure is tied to Europe and Latin America.
+Added: We may enter into derivative instruments that change in value as foreign currency exchange rates change to hedge certain exposures associated with affiliate revenue, the cost of producing or acquiring content, certain intercompany transactions, or in connection with forecasted business combinations.
These contracts hedge forecasted foreign currency transactions in order to mitigate fluctuations in our earnings and cash flows associated with changes in foreign currency exchange rates.
3 unchanged sentences
(See Note 13 to the accompanying consolidated financial statements.)
−Removed: We may use derivative financial instruments to modify our exposure to exogenous events and market risks from changes in foreign currency exchange rates, interest rates, and the fair value of investments with readily determinable fair values.
−Removed: We do not use derivative financial instruments unless there is an underlying exposure.
−Removed: While derivatives are used to mitigate cash flow risk and the risk of declines in fair value, they also limit potential economic benefits to our business in the event of positive shifts in foreign currency exchange rates, interest rates, and market values.
+Added: We may use derivative financial instruments to modify our exposure to exogenous events and market risks from changes in foreign currency exchange rates and interest rates.
+Added: We do not use derivatives unless there is an underlying exposure.
+Added: While derivatives are used to mitigate cash flow risk and the risk of declines in fair value, they also limit potential economic benefits to our business in the event of positive shifts in foreign currency exchange rates and interest rates.
We do not hold or enter into financial instruments for speculative trading purposes.
(See Note 13 to the accompanying consolidated financial statements.)
−Removed: Market Values of Investments
−Removed: In addition to derivatives, we had investments in entities accounted for as equity method investments, equity investments, and other highly liquid instruments, such as money market and mutual funds, that are accounted for at fair value.
−Removed: (See Note 4 and Note 5 to the accompanying consolidated financial statements.) Investments in mutual funds include both fixed rate and floating rate interest earning securities that carry a degree of interest rate risk.
−Removed: Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than predicted if interest rates fall.
+Added: Market Values of Investments and Liabilities
+Added: In addition to derivatives, we had investments in entities accounted for as equity method investments, equity investments, and other highly liquid instruments, such as money market funds and mutual funds, that are accounted for at fair value.
+Added: We also have liabilities, such as deferred compensation, that are accounted for at fair value (See Note 10 and Note 14 to the accompanying consolidated financial statements).
+Added: Investments in mutual funds include both fixed- and floating-rate interest earning securities that carry a degree of interest rate risk.
+Added: Fixed-rate securities may have their fair market value adversely impacted by a rise in interest rates, while floating-rate securities may produce less income than predicted if interest rates fall.
Due in part to these factors, our income from such investments may decrease in the future.
+Added: Liabilities carried at fair value, such as deferred compensation, may experience capital gains that result in increased liabilities and expenses as the capital gains occur.
+Added: We may enter into derivative financial instruments to hedge the risk of these market value changes.
+Added: (See Note 13 to the accompanying consolidated financial statements.)
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.