1 unchanged sentence
In the normal course of business, we are exposed to interest rate, foreign currency exchange and inflation risks that could impact our financial position and results of operations.
−Removed: In addition, we are subject to the broad market risk that is created by the global market disruptions and uncertainties resulting from macroeconomic challenges, the military conflict between Russia and Ukraine and the COVID-19 pandemic.
−Removed: Further discussion on these risks may be found in Item 1A of this is Quarterly Report on Form 10-Q under the heading “Risk Factors.”
+Added: In addition, we are subject to the broad market risk that is created by the global market disruptions and uncertainties resulting from macroeconomic challenges, various military conflicts and consumer confidence.
+Added: Further discussion on these risks may be found in Item 1A of this Quarterly Report on Form 10-Q under the heading “Risk Factors.”
Interest Rate Risk
3 unchanged sentences
As a result, our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities which have declined in market value due to changes in interest rates.
−Removed: As of September 30, 2023, we had approximately $62.9 million invested in available-for-sale marketable securities.
+Added: As of March 31, 2024, we had approximately $36.7 million invested in available-for-sale marketable securities.
An immediate 10% change in interest rates would not have a material adverse impact on our future operating results and cash flows.
We do not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to manage our interest rate risk exposure.
−Removed: As of September 30, 2023, we are not subject to risks from immediate interest rate increases on our unsecured revolving line of credit facility.
+Added: As of March 31, 2024, we are not subject to risks from immediate interest rate increases on our unsecured revolving line of credit facility.
Currency Rate Risk
2 unchanged sentences
This provides some natural hedging because most of the subsidiaries’ operating expenses are generally denominated in their local currencies.
−Removed: Regardless of this natural hedging, our results of operations may be adversely impacted by exchange rate fluctuations.
−Removed: We enter into foreign currency forward contracts for currencies where we have exposures, primarily the Euro, Japanese Yen, Chinese Yuan, Polish Zloty, Brazilian Real and Canadian Dollar, to minimize the short-term impact of foreign currency exchange rate fluctuations on cash and certain trade and intercompany receivables and payables.
−Removed: These forward contracts are not designated as hedging instruments and do not subject us to material balance sheet risk due to fluctuations in foreign currency exchange rates.
+Added: We enter into foreign currency forward contracts for currencies where we have exposures, primarily the Euro, British Pound, Chinese Yuan, Polish Zloty and Canadian Dollar, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain assets and liabilities.
+Added: These forward contracts are not designated as hedging instruments and are generally one month in original maturity and are marked to market through earnings every period.
The gains and losses on these forward contracts are intended to offset the gains and losses in the underlying foreign currency denominated monetary assets and liabilities being economically hedged.
−Removed: These instruments are generally one month in original maturity and are marked to market through earnings every period.
We do not enter into foreign currency forward contracts for trading or speculative purposes.
−Removed: As our international operations grow, we will continue to
−Removed: reassess our approach to managing the risks relating to fluctuations in currency rates.
+Added: As our international operations grow, we will continue to reassess our approach to managing the risks relating to fluctuations in currency rates.
It is difficult to predict the impact forward contracts could have on our results of operations.
1 unchanged sentence
dollar on our results of operations and financial position could be material.
−Removed: Military Conflicts in Ukraine and Middle East
−Removed: After beginning in 2022, the military conflict between Russia and Ukraine has continued to escalate and create challenges to already uncertain macroeconomic conditions.
−Removed: As of September 30, 2023, we do not expect these events to have any material impact on our operations.
−Removed: Our Russia net revenues as a percentage of our consolidated net revenues and our assets domiciled in Russia, including cash and cash equivalents, as a percentage of our total assets, are immaterial.
−Removed: Similarly, the recent conflict in the Middle East may further exacerbate general and regional macroeconomic instability, particularly if fighting is prolonged or spreads to other locations.
−Removed: Our iTero business is headquartered in Petach Tikva, Israel and we have employees and consultants in Israel that have been called for service in the current conflict in the Middle East and such persons may be absent for an extended period of time.
−Removed: We continue to monitor the potential for violence and military actions that may directly or indirectly impact our personnel, manufacturing, supply chain, and sales in unpredictable ways.
Inflation Risk
3 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.