Quantitative and Qualitative Disclosures about Market Risk
−Removed: We had no material derivative financial instruments or derivative commodity instruments as of June 30, 2021.
+Added: We had no material derivative financial instruments or derivative commodity instruments as of September 30, 2021.
We maintain our cash and cash equivalents in bank deposit accounts, money market funds and short-term U.S.
8 unchanged sentences
Our future investment income will vary due to changes in interest rates.
−Removed: For example, during the period ended June 30, 2020 and thereafter, we have experienced a significant decrease in interest rates, including in connection with the COVID-19 pandemic, and we expect to continue to reduce interest income earned on our invested funds.
+Added: For example, during the period ended September 30, 2020 and thereafter, we have experienced a significant decrease in interest rates, including in connection with the COVID-19 pandemic, and we expect to continue to reduce interest income earned on our invested funds.
However, the decrease in interest income did not have a material impact on our earnings.
−Removed: At June 30, 2021, a 10% increase or decrease in interest rates would not have a material impact on our future earnings, fair values, or cash flows.
+Added: At September 30, 2021, a 10% increase or decrease in interest rates would not have a material impact on our future earnings, fair values, or cash flows.
+Added: In the normal course of business, we employ established policies and procedures to manage our exposure to changes in interest rates.
+Added: To reduce our exposure to market risks from increases in interest rates on our variable rate indebtedness we entered into a hedging arrangement in the form of an interest rate cap agreement.
+Added: The interest rate cap agreement provides us with interest rate protection in the event the LIBOR rate increases above 2% and has a January 2025 termination date.
+Added: As of September 30, 2021, the interest rate cap agreement hedged $87.5 million of principal under our term loan.
+Added: For every 100 basis points increase in LIBOR, we would incur an incremental $1.8 million in interest expense per year, excluding any impact offset from the interest rate cap agreement.
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.