−Removed: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
+Added: ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are potentially exposed to market risks associated with changes in foreign currency translation rates, interest rates and commodity prices.
15 unchanged sentences
In such cases, if we price our products in the foreign currency, we will receive less in U.S.
−Removed: dollars than we would have received before the rate increase went
+Added: Dollars than we would have received before the rate increase went into effect.
If we price our products in U.S.
9 unchanged sentences
Total revenue
−Removed: Changes in foreign currency exchange rates increased our revenue by approximately 2.2% and 1.4% in the years ended December 31, 2021 and December 31, 2020, respectively.
+Added: Changes in foreign currency exchange rates decreased our revenue by approximately 6.9% and increased our revenue by approximately 2.2% in the years ended December 31, 2022 and December 31, 2021, respectively.
Assets and liabilities of our foreign subsidiaries, where the functional currency is the local currency, are translated into U.S.
−Removed: dollars using period end exchange rates, or historical rates, as appropriate.
+Added: Dollars using period-end exchange rates.
Revenues and expenses of foreign subsidiaries are translated at the average exchange rates in effect during the year.
−Removed: Adjustments resulting from financial statement translations are included as a separate component of shareholders’ equity.
−Removed: In the years ended December 31, 2021 and 2020, we recorded net losses of $26.4 million and net gains of $22.0 million, respectively, from currency translation adjustments.
+Added: Adjustments resulting from financial statement translations are included as a separate component of shareholders’
+Added: In the years ended December 31, 2022 and 2021, we recorded net losses of $22.0 million and net losses of $26.4 million, respectively, from currency translation adjustments.
A 10% depreciation in functional currencies, relative to the U.S.
−Removed: dollar, at December 31, 2021, would have resulted in a reduction of shareholders’ equity of approximately $255.8 million.
+Added: Dollar, at December 31, 2022, would have resulted in a reduction of shareholders’
+Added: equity of approximately $329.0 million.
Gains and losses resulting from foreign currency transactions are reported in interest and other income (expense), net in the consolidated statements of income and comprehensive income.
9 unchanged sentences
Under the U.S.
−Removed: GAAP hedge accounting guidance, changes in fair value of the derivative that relates to changes in the foreign currency spot rate are recorded in the currency translation adjustment in comprehensive income (loss) and remain in accumulated comprehensive income (loss) in stockholders’ equity until the sale or substantial liquidation of the foreign operation.
+Added: GAAP hedge accounting guidance, changes in fair value of the derivative that relates to changes in the foreign currency spot rate are recorded in the currency translation adjustment in comprehensive income (loss) and remain in accumulated comprehensive income (loss) in shareholders’
+Added: equity until the sale or substantial liquidation of the foreign operation.
The difference between the interest rate received and paid under the interest rate cross-currency swap derivative agreement is recorded in interest income in the statement of income.
From time to time, we have entered into forward currency contracts designed to minimize the volatility that fluctuations in foreign currency have on our cash flows related to purchases and sales denominated in foreign currencies.
−Removed: Under these arrangements, we agree to purchase a fixed amount of a foreign currency in exchange for
−Removed: a fixed amount of U.S.
+Added: Under these arrangements, we agree to purchase a fixed amount of a foreign currency in exchange for a fixed amount of U.S.
Dollars or other currencies on specified dates typically with maturities of less than twelve months with some agreements extending to longer periods.
9 unchanged sentences
We are exposed to certain commodity risks associated with prices for various raw materials.
−Removed: The prices of copper and certain other raw materials, particularly niobium-tin,
−Removed: used to manufacture superconductors have increased significantly over the last decade.
−Removed: Copper and niobium-tin
−Removed: are the main components of low temperature superconductors and continued commodity price increases for copper and niobium, as well as other raw materials, may negatively affect our profitability.
−Removed: We have arrangements with certain customers under which we have a firm commitment to deliver copper based on superconductor wire at a fixed price.
−Removed: In order to minimize the volatility that fluctuations in the price of copper have on our sales of these commodities, we enter into commodity hedge contracts.
+Added: The prices of copper and certain other raw materials, particularly niobium-tin, used to manufacture superconductors have increased significantly over the last decade.
+Added: Copper and niobium-tin are the main components of low temperature superconductors and continued commodity price increases for copper and niobium, as well as other raw materials, may negatively affect our profitability.
+Added: Periodically, we enter into commodity forward purchase contracts to minimize the volatility that fluctuations in the price of copper have on our sales of these products.
At December 31, 2022 and 2021, we had fixed price commodity contracts with notional amounts aggregating $8.9 million and $5.5 million, respectively.
3 unchanged sentences
Inflation Risk
−Removed: Global inflation increased during 2021 as a result of COVID-19
−Removed: and associated disruptions in global demand, logistics, and labor markets.
−Removed: These inflationary conditions could impact our future operating results.
−Removed: Inflation may affect the costs of materials and services that we use, including raw materials and labor to manufacture our products, as well as, transportation and logistical costs.
−Removed: We may not be able to recover these higher costs through increased selling prices due to competition and timing.
−Removed: Inflation rates may also vary between countries in which we operate.
−Removed: To date, these inflationary conditions have not had a material effect on our operating results;
−Removed: however, they could have a greater impact on our future operating results.
+Added: We are subject to inflationary cost pressures across global supply chain networks.
+Added: Certain components, parts, or materials are experiencing significant cost pressures that have impacted or may impact our cost of operations in future periods.
+Added: Further, inflation has increased our general and administrative expenses and may vary between countries in which we operate.
+Added: We continue to evaluate these cost increases in relation to our new orders and may continue to see a negative impact on our financial results for a period of time.
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.