3 unchanged sentences
Interest Rate Risk
−Removed: Our cash flow exposure due to changes in interest rates related to our debt is limited as our note obligations have fixed interest rates.
−Removed: The fair value of our note obligations may increase or decrease for various reasons, including fluctuations in the market price of our common stock, fluctuations in market interest rates and fluctuations in general economic conditions.
−Removed: A decline in interest rates in the future will not generally benefit us with respect to our fixed rate debt due to the terms and conditions of the indentures relating to that debt that would require us to repurchase the debt at specified premiums if redeemed early.
+Added: Interest Expense and Restricted Cash
+Added: Our cash flow exposure due to changes in interest rates related to our 2024 Notes is limited as our 2024 Notes have a fixed interest rate.
+Added: Beginning in August 2021 we used a derivative financial instrument to manage our interest rate risk on our 2026 Notes.
+Added: As of December 31, 2021, we were counterparty to our Swap Agreement that has the economic effect of modifying our fixed-interest rate obligation associated with our 2026 Notes to a variable interest rate obligation based on SOFR.
+Added: The Swap Agreement is recorded at its fair value at each reporting period and we incur gains and losses due to changes in market interest rates.
+Added: The values that we report for the Swap Agreement as of each reporting date are recognized as additional non-cash interest expense or a reduction to interest expense with the corresponding amount included in liabilities or assets, respectively, in our consolidated balance sheets.
+Added: By entering into this Swap Agreement, we have assumed the risk associated with variable interest rates based upon SOFR related to our 2026 Notes.
+Added: We have not entered into hedge agreements related to our 2024 Notes and we do not use derivative financial instruments for trading purposes.
+Added: We have a $20.0 million interest-bearing deposit with the counterparty to the Swap Agreement.
+Added: If the fair value of the Swap Agreement exceeds a net liability of $20.0 million, we will be required to deposit additional funds with the counterparty equal to the net liability that is in excess of $20.0 million.
+Added: As of December 31, 2021, the fair value of the Swap Agreement was a net liability of $9.0 million, as a result, $9.0 million of the $20.0 million deposit was restricted and $11.0 million was unrestricted.
+Added: A 1.0% change in interest rates as of December 31, 2021 would impact our interest expense related to our Swap Agreement by approximately $20.4 million.
+Added: Interest Income
Our interest income is sensitive to changes in the general level of interest rates.
−Removed: However, based upon the nature and current level of our investments, which consist of cash and cash equivalents, we believe that there is no material interest rate exposure related to our investments.
+Added: However, based upon the nature and current level of our investments, which consist of cash, cash equivalents and restricted cash, we believe that there is no material interest rate exposure related to our investments.
Foreign Currency Exchange Risk
3 unchanged sentences
Therefore, our reported results are exposed to fluctuations in the exchange rates between the US dollar and the local currencies, in particular the Euro and the Canadian dollar.
−Removed: In addition, we may fund certain cash flow requirements of our international operations including the interest and principal payment obligations, while due in Euros, on our 2024 notes in US dollars.
+Added: In addition, we may fund certain cash flow requirements of our international operations including our interest and principal payment obligations, while due in Euros, on our 2024 notes primarily in US dollars.
Accordingly, in the event that the local currencies strengthen versus the US dollar to a greater extent than planned, the revenues, expenses and cash flow requirements associated with our international operations may be significantly higher in US-dollar terms than planned.
3 unchanged sentences
Changes in foreign currency rates could adversely and materially affect our operating results and cash flow.
+Added: Page 34 of 70
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.