4 unchanged sentences
We had no material derivative financial instruments or derivative commodity instruments as of December 31, 2021.
−Removed: We maintain our cash and cash equivalents in bank deposit accounts, money market funds invested in federal securities, and short-term U.S.
+Added: We maintain our cash and cash equivalents in bank deposit accounts, money market funds, and short-term U.S.
Treasury bills.
2 unchanged sentences
We believe we are not exposed to any significant credit risk on cash and cash equivalents.
−Removed: Due to the short-term duration of our investment portfolio and the low risk profile of our investments, a 10% increase or decrease in interest rates would not have a material impact on the fair value of our portfolio.
+Added: Due to the short-term duration of our investment portfolio, the low yield on the portfolio, and the low risk profile of our investments, a 10% increase or decrease in interest rates would not have a material impact on the fair value of our portfolio.
Interest Rate Risk
2 unchanged sentences
Our future investment income will vary due to changes in interest rates.
−Removed: For example, during the year ended December 31, 2020, we have experienced a significant decrease in interest rates, including in connection with the COVID-19 pandemic, and we expect a continued reduction in interest income on our invested funds.
+Added: For example, during the year ended December 31, 2021, we have experienced a significant decrease in interest rates, and we expect a continued reduction in interest income on our invested funds.
At December 31, 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 December 31, 2021, the interest rate cap agreement hedged $87.5 million of principal under the Term Loan.
+Added: For every 100 basis points increase in LIBOR, we would incur an incremental $1.7 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.