For Bimbo Foods Bakeries Distribution, what is the currency and amount associated with the notional amount?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
rage.
| Market value | ||||||
|---|---|---|---|---|---|---|
| Notional | Notional | Rate | ||||
| amount | Currency amount | Currency Maturity | received | Rate paid | 2024 2023 | 2022 |
| 100 | USD 93 EUR | 28-jun-2032 4.870% | 3.610%$ | 33 $ 103 | $ | - |
Foreign currency hedges
There is an economic relationship between the hedged items and the hedging instruments as the terms of the foreign exchange and commodity forward contracts match the terms of the expected highly probable forecast transactions (i.e. notional amount and expected payment date). The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange and commodity forward contracts are identical to the hedged risk components.
Derivative Financial Instruments Current Assets - Foreign Currency Hedging:
a) As of December 31, the Company had contracted the following forwards to hedge its foreign currency risk related to raw materials and other:
| | | | | | | Market value | | |---|---|---|---|---|---|---|---| | Notional | | Notional | | Rate | | | | | amount | Currency | amount | Currency Maturity | received Rate paid | 2024 | 2023 | 2022 | | 200 | USD | 3,733 | MXN 06-sep-2049 | - 3.040%$ | - | $ 59 $ | - |
An analysis of the maturities of these forwards as of December 31, 2024, is as follows:
| Market value | ||||||
|---|---|---|---|---|---|---|
| Notional | Notional | Rate | ||||
| amount | Currency | amount Currency | Maturity received | Rate paid 2024 | 2023 2022 | |
| 50 | USD | 1,075 | MXN 06-mar-2030 | 4.000% 8.080% $ | 13 $ 194 $ 27 | |
| 50 | USD | 1,033 | MXN 06-sep-2030 | 4.000% 9.810% | 53 246 80 | |
| 50 | USD | 1,018 | MXN 06-sep-2030 | 4.000% 9.670% | 31 223 57 | |
| 25 | USD | 494 | MXN 06-sep-2030 | 4.000% 9.370% | - 87 5 | |
| 25 | USD | 494 | MXN 06-sep-2030 | 4.000% 9.340% | - 87 4 |
b) As of December 31, the Company had the following forwards to hedge forecast transactions:
| Market value | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Notional | Notional | Rate | |||||||
| amount | Currency | amount | Currency Maturity | received | Rate paid | 2024 | 2023 | 2022 | |
| 100 | USD | 131 | CAD 10-nov-2047 | - | - $ 103 | $ 87 $ | - | ||
| 120 | USD | 158 | CAD 10-nov-2047 | - 0.020% | 135 $ 238 | 116 $ 203 $ | - - | #### An analysis of the maturities of these forwards as of December 31, 2024, is as follows: |
| < 1 | > 1 month | > 3 months | > 6 months | > 9 months | ||
|---|---|---|---|---|---|---|
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, several instances of notional amounts and their associated currencies are listed. These amounts vary, with some specified in USD (United States Dollar) and others in EUR (Euro). For example, a notional amount of 200 is listed in USD, while another notional amount of 100 is in USD, paired with 99 EUR. These figures are associated with various maturity dates and rates, reflecting different financial instruments or agreements Bimbo Foods Bakeries Distribution may have in place.
These notional amounts are further linked to corresponding notional amounts in MXN (Mexican Peso), along with maturity dates and interest rates. For instance, a notional amount of 200 USD is paired with 3,733 MXN, maturing on September 6, 2049. Another example shows 100 USD paired with 1,869 MXN, maturing on June 27, 2044. These pairings suggest currency swaps or hedging strategies employed by Bimbo Foods Bakeries Distribution to manage financial risks associated with currency fluctuations.
The market values associated with these notional amounts are also provided for the years 2024, 2023, and 2022. These values reflect the fair market valuation of these financial instruments at the end of each respective year. For example, a notional amount of 100 USD paired with 1,829 MXN shows a market value of $42 in 2023, $204 in 2022, and $131 in 2024. These market values can fluctuate based on changes in interest rates, currency exchange rates, and other market conditions, impacting the overall financial position of Bimbo Foods Bakeries Distribution.