8 unchanged sentences
We do not engage in foreign currency speculation.
−Removed: The Company enters into economic hedges utilizing foreign currency forward contracts with maturities of up to 95 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables.
−Removed: Table of Content
+Added: The Company enters into economic hedges utilizing foreign currency forward contracts with maturities of up to 3 months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables.
The Company had the following outstanding forward contracts (in thousands):
3 unchanged sentences
Euro 60,000 $ 64,174 0.9350 0.9350 65,000 $ 73,748 0.8814 0.8814
−Removed: Chinese Renminbi 54,374 8,500 6.40 6.40 — — — —
Mexican Peso 185,000 9,480 19.51 19.51 140,000 6,842 20.46 20.46
+Added: Chinese Renminbi 55,000 7,619 7.22 7.22 54,374 8,500 6.40 6.40
Japanese Yen 700,000 5,281 132.56 132.56 600,000 5,213 115.10 115.10
−Removed: British Pound 3,370 4,552 0.7403 0.7403 1,675 2,287 0.7324 0.7324
Hungarian Forint 1,590,000 4,238 375.19 375.19 1,355,000 4,155 326.11 326.11
+Added: British Pound 3,445 4,161 0.8279 0.8279 3,370 4,552 0.7403 0.7403
Canadian Dollar 1,730 1,278 1.35 1.35 1,480 1,167 1.27 1.27
−Removed: Korean Won — — — — 6,925,000 6,377 1,086 1,086
−Removed: Taiwanese Dollar — — — — 38,035 1,362 27.93 27.93
−Removed: Singapore Dollar — — — — 1,465 1,110 1.32 1.32
+Added: Swiss Franc 1,120 1,218 0.92 0.92 — — — —
A change in foreign currency exchange rates could materially impact the fair value of these contracts;
4 unchanged sentences
Furthermore, our failure to identify new exposures and hedge them in an effective manner may result in material foreign currency gains or losses.
+Added: Table of Content
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.
11 unchanged sentences
Interest Rate Risk
−Removed: The Company’s investment portfolio of debt securities includes corporate bonds, treasury bills, asset-backed securities, agency bonds, sovereign bonds, and municipal bonds.
+Added: The Company’s investment portfolio of debt securities includes corporate bonds, asset-backed securities, treasury bills, 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.
−Removed: As of December 31, 2021, the fair value of the Company’s portfolio of debt securities amounted to $721,203,000 with amortized cost amounts totaling $725,105,000, maturities that do not exceed five years, and a yield to maturity of 0.92%.
+Added: As of December 31, 2022, the fair value of the Company’s portfolio of debt securities amounted to $672,876,000 with amortized cost amounts totaling $699,693,000, maturities that do not exceed six years, and a yield to maturity of 1.94%.
Differences between the fair value and principal amounts of the Company’s portfolio of debt securities are primarily attributable to discounts and premiums arising at the acquisition date, as well as unrealized gains and losses as of the balance sheet date.
+Added: Management currently intends to hold these securities to full value recovery at maturity.
The Company’s investment policy allows investment in debt securities with effective maturities up to ten years, however as of December 31, 2022, 77% of the investment portfolio has effective maturity dates of less than three years.
1 unchanged sentence
As a result, the Company does not currently hedge these interest rate exposures.
−Removed: 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).
9 unchanged sentences
Agency bonds 16,126 15,992 15,858 15,724 15,590
−Removed: Municipal bonds 5,736 5,687 5,639 5,591 5,542
Sovereign bonds 1,956 1,940 1,924 1,907 1,891
+Added: Municipal bonds 635 630 624 619 614
$ 684,248 $ 678,562 $ 672,876 $ 667,190 $ 661,504
1 unchanged sentence
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.