6 unchanged sentences
In certain instances, we utilize forward contracts to hedge against foreign currency fluctuations.
−Removed: These contracts are used to minimize foreign gains or losses, as the gains or losses on the derivative are intended to offset the losses or gains on the underlying exposure.
+Added: These contracts are used to minimize foreign currency gains or losses, as the gains or losses on the derivative are intended to offset the losses or gains on the underlying exposure.
We do not engage in foreign currency speculation.
−Removed: The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates.
−Removed: The Company may enter into two types of hedges to manage this risk.
−Removed: The first are economic hedges which utilize foreign currency forward contracts with maturities of up to 45 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables.
−Removed: The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged.
−Removed: The second are cash flow hedges which utilize foreign currency forward contracts with maturities of up to 18 months to hedge specific forecasted transactions of the Company's foreign subsidiaries with the goal of protecting our budgeted revenues and expenses against foreign currency exchange rate changes compared to our budgeted rates.
−Removed: The Company did not have any cash flow hedges as of December 31, 2019 and 2018.
+Added: The Company enters into economic hedges utilizing foreign currency forward contracts with maturities of up to 45 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables.
+Added: Table of Content
The Company had the following outstanding forward contracts (in thousands):
−Removed: December 31, 2019
−Removed: December 31, 2018
−Removed: Notional Value
−Removed: USD Equivalent
−Removed: Notional Value
−Removed: USD Equivalent
+Added: December 31, 2020 December 31, 2019
+Added: Currency Notional Value USD Equivalent High Rate Low Rate Notional Value USD Equivalent High Rate Low Rate
Derivatives Not Designated as Hedging Instruments:
−Removed: British Pound
+Added: Euro 50,000 $ 61,342 0.8151 0.8151 18,000 $ 20,249 0.8917 0.8917
+Added: Mexican Peso 155,000 7,776 19.93 19.93 80,000 4,223 18.94 18.94
+Added: Korean Won 6,925,000 6,377 1,086 1,086 161,951,500 139,688 1,155 1,155
+Added: Japanese Yen 600,000 5,808 103.30 103.30 575,000 5,291 108.70 108.70
Hungarian Forint 1,330,000 4,494 295.9 295.9 870,000 2,962 295.3 295.3
+Added: British Pound 1,675 2,287 0.7324 0.7324 2,700 3,569 0.7541 0.7541
Taiwanese Dollar 38,035 1,362 27.93 27.93 37,450 1,256 29.91 29.91
−Removed: Canadian Dollar
Singapore Dollar 1,465 1,110 1.3198 1.3198 845 628 1.3461 1.3461
+Added: Canadian Dollar 1,285 1,010 1.2719 1.2719 1,300 1,000 1.2989 1.2989
A change in foreign currency exchange rates could materially impact the fair value of these contracts;
5 unchanged sentences
The Company’s functional currency/reporting currency exchange rate exposures result from revenues and expenses that are denominated in currencies other than the U.S.
−Removed: A significant portion of our revenues and expenses are denominated in the Euro, the Chinese Yuan, and the Japanese Yen.
−Removed: Our predominant currency of sale is the U.S.
−Removed: Dollar in the Americas, the Euro and U.S.
−Removed: Dollar in Europe, the Yuan in Mainland China, the Yen in Japan, and the U.S.
−Removed: Dollar in other regions.
+Added: In addition to the U.S.
+Added: Dollar, a significant portion of our revenues and expenses are denominated in the Euro and Chinese Yuan, and to a lesser extent the Japanese Yen, Korean Won, and Mexican Peso.
We estimate that approximately 45% of our sales in 2020 were invoiced in currencies other than the U.S.
4 unchanged sentences
Conversely, in times when the U.S.
−Removed: Dollar weakens in relation to these foreign currencies,
−Removed: we would expect to report a net increase in operating income.
+Added: Dollar weakens in relation to these foreign currencies, we would expect to report a net increase in operating income.
Thus, changes in the relative strength of the U.S.
1 unchanged sentence
Interest Rate Risk
−Removed: The Company’s investment portfolio of debt securities includes corporate bonds, treasury bills, asset-backed securities, sovereign bonds, agency bonds, and municipal bonds.
+Added: The Company’s investment portfolio of debt securities includes corporate bonds, treasury bills, asset-backed securities, agency bonds, sovereign bonds, and municipal bonds.
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value.
4 unchanged sentences
As a result, the Company does not currently hedge these interest rate exposures.
+Added: Table of Content
The following table presents the hypothetical change in the fair value of the Company’s portfolio of debt securities arising from selected potential changes in interest rates (in thousands).
This modeling technique measures the change in fair value that would result from a parallel shift in the yield curve plus or minus 50 and 100 basis points (BP) over a twelve-month time horizon.
−Removed: Type of security
−Removed: Valuation of securities given
−Removed: an interest rate decrease
−Removed: interest rates
−Removed: Valuation of securities given
+Added: Type of security Valuation of securities given
+Added: an interest rate decrease No change in
+Added: interest rates Valuation of securities given
an interest rate increase
−Removed: Treasury bills
+Added: (100 BP) (50 BP) 50 BP 100 BP
Corporate bonds $ 239,731 $ 237,937 $ 236,142 $ 234,347 $ 232,553
+Added: Treasury bills 133,866 132,863 131,861 130,859 129,857
Asset-backed securities 93,619 92,918 92,218 91,517 90,816
+Added: Agency bonds 19,295 19,150 19,006 18,862 18,717
Sovereign bonds 12,285 12,193 12,100 12,009 11,917
Municipal bonds 7,144 7,090 7,038 6,983 6,930
+Added: $ 505,940 $ 502,151 $ 498,365 $ 494,577 $ 490,790
+Added: Table of Content
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.