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 the result of fluctuations in interest rates and, to a lesser extent, inflation.
+Added: Our market risk exposure is primarily the result of fluctuations in interest rates and, to a lesser extent, foreign currency rates and inflation.
Interest Rate Risk
Our primary exposure to market risk relates to interest rate changes.
−Removed: We had cash and cash equivalents of $184.4 million and no marketable securities as of December 31, 2019, which were held for working capital purposes.
+Added: We had cash and cash equivalents of $72.2 million and other investments of $40.0 million as of December 31, 2020, which were held for working capital purposes.
Our cash and cash equivalents are comprised primarily of interest bearing checking accounts, money market accounts and time deposits.
−Removed: Marketable securities consist of U.S.
−Removed: treasury securities not otherwise classified as cash equivalents.
+Added: Other investments consist of time deposits with original stated maturities of greater than 90 days.
Such interest-earning instruments carry a degree of interest rate risk.
3 unchanged sentences
Due to the short-term nature of our investments, we have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in interest rates.
−Removed: Our debt is comprised of a revolving line of credit account, which had no amount outstanding as of December 31, 2019.
−Removed: Loans under the Credit Agreement will bear interest at the highest of (i) the bank’s prime rate, (ii) the federal funds effective rate plus 0.5 percent, and (iii) the London Interbank Offered Rate plus 1.00 percent.
+Added: Our debt is comprised in part of the Credit Facility, which had no amount outstanding as of December 31, 2020.
+Added: Loans under the credit agreement governing the Credit Facility will bear interest at the highest of (i) the bank’s prime rate, (ii) the federal funds effective rate plus 0.5 percent, and (iii) the London Interbank Offered Rate plus 1.00 percent.
A hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our consolidated financial statements.
+Added: In February 2020, we issued $400.0 million aggregate principal amount of the Convertible Notes.
+Added: As the Convertible Notes have a fixed annual interest rate, we have no financial or economic interest exposure associated with changes in interest rates.
+Added: However, the fair value of fixed rate debt instruments fluctuates when interest rates change.
+Added: Additionally, the fair value can be affected when the market price of our common stock fluctuates.
+Added: We carry the Convertible Notes at face value less unamortized discount on our balance sheet, and we present the fair value for required disclosure purposes only.
Foreign Currency Risk
−Removed: Our customers consume our services primarily in the United States.
−Removed: Our revenue and expenses are primarily denominated in U.S.
−Removed: dollars and as a result we have minimal foreign currency risk as of December 31, 2019.
−Removed: The local currencies of our foreign subsidiaries are the Euro and the British Pound.
+Added: The functional currencies of our foreign subsidiaries are the respective local currencies of the jurisdictions in which they operate, which are primarily the Euro and the British Pound.
+Added: Approximately 5% of our total revenue for the year ended December 31, 2020 was generated outside the United States.
+Added: The majority of our revenues and operating expenses are denominated in U.S.
+Added: dollars, and therefore are not currently subject to significant foreign currency risk.
Our subsidiaries remeasure monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates.
1 unchanged sentence
If there is a change in foreign currency exchange rates, the conversion of our foreign subsidiaries’ financial statements into U.S.
−Removed: dollars would result in a realized gain or loss which is recorded in other income, net in our consolidated statements of operations.
+Added: dollars would result in a realized gain or loss, which is recorded in other income (expense), net in our consolidated statements of operations.
We do not currently engage in any hedging activity to reduce our potential exposure to currency fluctuations, although we may choose to do so in the future.
−Removed: A hypothetical 10% change in foreign exchange rates during any of the periods presented would not have had a material impact on our consolidated financial statements.
+Added: To the extent the U.S.
+Added: dollar weakens against foreign currencies, the translation of these foreign currencies result in increased revenue and operating expenses for our non-U.S.
+Added: Similarly, our revenue and operating expenses for our non-U.S.
+Added: operations decrease if the U.S.
+Added: dollar strengthens against foreign currencies.
We do not believe inflation has had a material effect on our business, financial condition or results of operations.
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.