Quantitative and Qualitative Disclosures About Market Risk
−Removed: Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates.
+Added: Market risk represents the risk of loss that may impact our financial condition due to adverse changes in financial market prices and rates.
Our market risk exposure is primarily a result of fluctuations in foreign currency rates, although we also have exposure due to potential changes in interest rates.
20 unchanged sentences
The primary objective of our investment activities is to preserve principal while maximizing income without significantly increasing risk.
−Removed: The interest rates on our Credit Facility also fluctuate based on various market conditions that affect LIBOR, the prime rate, or the overnight bank funding effective rate.
+Added: The interest rates on our Credit Facility also fluctuate based on various market conditions that affect the Secured Overnight Financing Rate (“SOFR”), the prime rate, or the overnight bank funding effective rate.
The cost of borrowing thereunder may be impacted as a result of our interest rate risk exposure.
−Removed: Interest rate risk associated with the Credit Facility is managed through an interest rate swap which we executed on March 31, 2020.
−Removed: Under the terms of the interest rate swap, we fixed our LIBOR borrowing rate at 0.73% on a notional amount of $200.0 million and for a period of ten years.
+Added: Effective on April 2, 2020, we entered into an interest rate swap with a notional amount of $200.0 million and a ten‑year term to reduce the interest rate risk associated with our Credit Facility.
+Added: Under the terms of the interest rate swap, we pay a fixed interest rate of 72.9 basis points (“bps”), and will receive a floating interest rate equal to daily SOFR plus an Alternative Reference Rates Committee (“ARRC”) spread adjustment of 11.448 bps.
We do not enter into investments or derivative instruments for trading or speculative purposes.
3 unchanged sentences
In addition, the fair value of the 2026 Notes and 2027 Notes will generally increase as our Class B common stock price increases and will generally decrease as the common stock price declines.
−Removed: The interest and market value changes affect the fair value of the 2026 Notes and 2027 Notes, but do not impact our financial position, results of operations, or cash flows due to the fixed nature of the debt obligation.
+Added: The interest and market value changes affect the fair value of the 2026 Notes and 2027 Notes, but do not impact our financial condition, results of operations, or cash flows due to the fixed nature of the debt obligation.
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.
6 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.