2 unchanged sentences
Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates.
−Removed: Our market risk exposure is primarily a result of fluctuations in foreign currency exchange rates, interest rates, investments in privately-held companies, and marketable equity investments.
−Removed: Macroeconomic uncertainties, including supply chain and labor shortages, inflation and monetary policy shifts, recession risks, the COVID-19 pandemic, and potential disruptions from the Russia-Ukraine conflict and U.S.
+Added: Our market risk exposure is primarily a result of fluctuations in foreign currency exchange rates, interest rates, and strategic equity investments.
+Added: Macroeconomic uncertainties, including inflation, monetary policy shifts, uncertainty in the global banking and financial services markets, recession risks, potential disruptions from the Russia-Ukraine and Israel-Hamas conflicts, the Houthi movement in the Red Sea and the U.S.
trade war with China have increased the volatility of global financial markets, which may increase our foreign currency exchange risk and interest rate risk.
27 unchanged sentences
For the years ended December 31, 2023, 2022 and 2021, the effect of an immediate 10% change in interest rates would not have been material to our operating results and the total value of the portfolio assuming consistent investment levels.
−Removed: On the other hand, the fair market value of our investments in fixed income securities may be adversely impacted.
+Added: Conversely, an increase in interest rates could have a material impact to the fair market value of our investments in fixed income securities.
We would incur unrealized losses on fixed income securities if there is an increase in interest rates compared to interest rates at the time of purchase.
1 unchanged sentence
However, because of the conservative and short-term nature of the investments in our portfolio, a change in interest rates is not expected to have a material impact on our consolidated financial statements.
−Removed: Investments in Privately-Held Companies and Marketable Equity Investment
−Removed: Our non-marketable equity investments in privately-held companies are recorded in “Investments” in our consolidated balance sheets.
+Added: Strategic Equity Investments
+Added: Our non-marketable equity investments in privately-held companies are recorded in “other assets” in our consolidated balance sheets.
As of December 31, 2023 and 2022, the total carrying amount of our investments in privately-held companies was $62.3 million and $39.5 million, respectively.
−Removed: For the years ended December 31, 2022, 2021 and 2020, we recorded a net gain of $15.8 million, $0, and $4.1 million, respectively, on certain investments.
+Added: For the years ended December 31, 2023, 2022 and 2021, we recorded a net gain of $13.9 million, $15.8 million and $0, respectively, with respect to these investments.
Fair Value Measurements of the Notes to Consolidated Financial Statements included in Part II, Item 8, of this Annual Report on Form 10-K for details.
The privately-held companies in which we invested are in the startup or development stages.
−Removed: These investments are inherently risky because the markets for the technologies or products these companies are developing are typically in the early
−Removed: stages and may never materialize.
+Added: These investments are inherently risky because the markets for the technologies or products these companies are developing are typically in the early stages and may never materialize.
We could lose our entire investment in these companies.
Our evaluation of investments in privately-held companies is based on the fundamentals of the businesses invested in, including among other factors, the nature of their technologies and potential for financial return.
−Removed: One of our equity investments in a privately-held company completed an initial public offering at the beginning of 2022 and subsequently our investment converted to a marketable equity security and is subject to price risk.
−Removed: This investment generated an unrealized gain of $10.7 million during 2022 and the fair value of the investment was $19.1 million as of December 31, 2022.
+Added: One of our equity investments in a privately-held company completed an initial public offering at the beginning of 2022 and subsequently our investment converted to a marketable equity security.
+Added: During the year ended December 31, 2023, the Company sold all its shares of this security for $23.9 million.
+Added: The cost of this investment was $3.0 million and the cumulative gain since inception was $20.9 million, the majority of which has been reflected in prior periods as mark-to-market net gains in Other income, net.
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.