QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We are subject to certain risks that may affect our results of operations, cash flow and fair values of assets and liabilities, including volatility in foreign currency exchange rates, interest rate movements and equity price exposure as well as changes in economic conditions in the markets in which we operate as a result of the COVID-19 pandemic.
+Added: We are subject to certain risks that may affect our results of operations, cash flow and fair values of assets and liabilities, including volatility in foreign currency exchange rates, interest rate movements and equity price exposure as well as changes in economic conditions in the markets in which we operate as a result of the COVID-19 pandemic and the conflict in Ukraine.
We manage the impact of foreign currency exchange rates and interest rates through various financial instruments, including derivative instruments such as foreign currency forward contracts, interest rate lock contracts and interest rate swap contracts.
3 unchanged sentences
Our results of operations are subject to foreign currency exchange rate fluctuations due to the global nature of our operations.
−Removed: As a result, our consolidated financial position, results of operations and cash flow can be affected by market fluctuations in foreign currency exchange rates, primarily with respect to the Euro, British pound sterling, Canadian dollar, Swiss franc, Japanese yen and South Korean won.
+Added: As a result, our consolidated financial position, results of operations and cash flow can be affected by market fluctuations in foreign currency exchange rates, primarily with respect to the Euro, British pound sterling, Canadian dollar, Swiss franc and Japanese yen.
While the financial results of our global activities are reported in U.S.
5 unchanged sentences
The impact to net income as a result of a strengthening U.S.
−Removed: dollar will be partially mitigated by the value of non-U.S.
+Added: dollar will be partially
+Added: Table of Conten ts
+Added: mitigated by the value of non-U.S.
expense, which will also decline when reported in U.S.
1 unchanged sentence
revenue and expense will increase when reported in U.S.
−Removed: We have established revenue and operating expense hedging and balance sheet risk management programs to protect against volatility of future foreign currency cash flows and changes in fair value caused by volatility in foreign currency exchange rates.
+Added: We have established revenue and operating expense hedging and balance sheet risk management programs to protect against volatility of future foreign currency cash flow and changes in fair value caused by volatility in foreign currency exchange rates.
During the second quarter of 2018 the International Practices Task Force of the Center for Audit Quality categorized Argentina as a country with a projected three-year cumulative inflation rate greater than 100.0%, which indicated that Argentina’s economy is highly inflationary.
2 unchanged sentences
Our foreign currency hedging program is designed to mitigate, over time, a portion of the impact resulting from volatility in exchange rate changes on revenue and operating expense.
−Removed: We use foreign currency forward contracts to manage foreign currency risk, with the majority of our forward contracts used to hedge certain forecasted revenue and operating expense transactions denominated in foreign currencies in the next 15 months.
+Added: We use foreign currency forward contracts and foreign currency options to manage foreign currency risk, with the majority of our forward contracts used to hedge certain forecasted revenue and operating expense transactions denominated in foreign currencies in the next 12 months.
We do not engage in currency speculation.
6 unchanged sentences
The primary objective of our balance sheet risk management program is to mitigate the exposure of foreign currency denominated net monetary assets and liabilities of foreign affiliates.
−Removed: In these instances, we principally utilize currency forward contracts.
+Added: In these instances, we principally utilize currency forward
We have not elected hedge accounting for the balance sheet related items.
2 unchanged sentences
As of December 31, 2022 and 2021, a hypothetical adverse 10.0% movement in foreign currency exchange rates compared to the U.S.
−Removed: dollar across all maturities
−Removed: T a ble of Content s
−Removed: would result in a hypothetical decrease in the fair value of forward contracts of approximately $333.1 million and $458.2 million, respectively.
+Added: dollar across all maturities would result in a hypothetical decrease in the fair value of forward contracts of approximately $293.7 million and $333.1 million, respectively.
The estimated fair value change was determined by measuring the impact of the hypothetical exchange rate movement on outstanding forward contracts.
1 unchanged sentence
The quantitative information about market risk is limited because it does not take into account all foreign currency operating transactions.
−Removed: Net Investment Hedge Program
−Removed: Our net investment hedging program is designed to mitigate currency fluctuations between the U.S.
−Removed: dollar and the South Korean won as a result of our approximately 49.9% ownership interest in Samsung Bioepis.
−Removed: We entered into foreign currency forward contracts to hedge changes in the spot rate over the next 10 months.
−Removed: As of December 31, 2021 and 2020, a hypothetical adverse 10.0% movement would result in a hypothetical decrease in fair value of approximately $58.7 million and $56.9 million, respectively.
−Removed: The estimated fair value was determined by measuring the impact of the hypothetical spot rate movement on outstanding forward contracts.
−Removed: We plan to unwind our foreign currency forward contracts in conjunction with the closing of our proposed sale of our ownership interest in Samsung Bioepis to Samsung Biologics.
−Removed: Closing of the transaction is currently anticipated in mid-2022, contingent on the effectiveness of a securities registration statement filed by Samsung Biologics and satisfaction of certain regulatory and other customary closing conditions.
Interest Rate Risk
5 unchanged sentences
Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents, investments, derivatives and accounts receivable.
−Removed: We attempt to minimize the risks related
−Removed: to cash and cash equivalents and investments by investing in a broad and diverse range of financial instruments.
+Added: We attempt to minimize the risks related to cash and cash equivalents and investments by investing in a broad and diverse range of financial instruments.
We have established guidelines related to credit ratings and maturities intended to safeguard principal balances and maintain liquidity.
1 unchanged sentence
We minimize credit risk resulting from derivative instruments by choosing only highly rated financial institutions as counterparties.
−Removed: We operate in certain countries where weakness in economic conditions, including as a result of the COVID-19 pandemic, can result in extended collection periods.
+Added: Table of Conten ts
+Added: We operate in certain countries where weakness in economic conditions, including the effects of the COVID-19 pandemic and the conflict in Ukraine, can result in extended collection periods.
We continue to monitor these conditions, including the volatility associated with international economies and the relevant financial markets, and assess their possible impact on our business.
10 unchanged sentences
The information required by this Item 8 is contained on pages F-1 through F-79 of this report and is incorporated herein by reference.
−Removed: T a ble of Content s
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
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.