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 3 months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables.
−Removed: The Company had the following outstanding forward contracts (in thousands):
+Added: The Company enters into economic hedges utilizing foreign currency forward contracts with maturities of up to three months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables.
+Added: Table of Content
+Added: The Company had the following outstanding forward contracts as of December 31, 2023 and 2022 (in thousands):
December 31, 2023 December 31, 2022
2 unchanged sentences
Euro 40,000 $ 44,302 0.9029 0.9029 60,000 $ 64,174 0.9350 0.9350
+Added: Singapore Dollar 39,700 30,136 1.32 1.32 — — — —
Mexican Peso 145,000 8,505 17.05 17.05 185,000 9,480 19.51 19.51
Chinese Renminbi 50,000 7,025 7.12 7.12 55,000 7,619 7.22 7.22
−Removed: Japanese Yen 700,000 5,281 132.56 132.56 600,000 5,213 115.10 115.10
Hungarian Forint 2,240,000 6,466 346.45 346.45 1,590,000 4,238 375.19 375.19
British Pound 3,345 4,258 0.7855 0.7855 3,445 4,161 0.8279 0.8279
+Added: Japanese Yen 600,000 4,255 141.02 141.02 700,000 5,281 132.56 132.56
Canadian Dollar 1,470 1,112 1.32 1.32 1,730 1,278 1.35 1.35
6 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.
−Removed: 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.
In addition to the U.S.
−Removed: Dollar, a significant portion of our revenues and expenses are denominated in the Euro and Chinese Renminbi, and to a lesser extent the Japanese Yen, Korean Won, and Mexican Peso.
+Added: Dollar, a significant portion of our revenues and expenses are denominated in the Euro and Chinese Renminbi, and to a lesser extent the Korean Won, Japanese Yen, Mexican Peso, and Indian Rupee.
We estimate that approximately 52% of our sales in 2023 were invoiced in currencies other than the U.S.
8 unchanged sentences
Interest Rate Risk
−Removed: The Company’s investment portfolio of debt securities includes corporate bonds, asset-backed securities, treasury bills, agency bonds, sovereign bonds, and municipal bonds.
+Added: The Company’s investment portfolio of debt securities includes corporate bonds, treasury notes, asset-backed securities, and sovereign 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, 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%.
+Added: As of December 31, 2023, the fair value of the Company’s portfolio of debt securities amounted to $373,622,000, with amortized cost amounts totaling $383,589,000, maturities that do not exceed seven years, and a yield to maturity of 2.3%.
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.
Management currently intends to hold these securities to full value recovery at maturity.
−Removed: 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.
−Removed: Given the relatively short maturities and investment-grade quality of the Company’s portfolio of debt securities as of December 31, 2022, a sharp rise in interest rates should not have a material adverse effect on the fair value of these instruments.
+Added: In July 2023, the Company’s investment policy was modified to reduce effective maturities of newly purchased securities to up to five years.
+Added: As of December 31, 2023, the Company held investments with maturities in excess of the five-year limit that were approved as pre-existing exceptions to the new policy.
+Added: As of December 31, 2023, 68% of the investment portfolio had effective maturity dates of less than three years.
+Added: Given the relatively short maturities and investment-grade quality of the Company’s portfolio of debt securities as of December 31, 2023, we do not expect a sharp rise in interest rates to have a material adverse effect on the fair value of these instruments.
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).
6 unchanged sentences
Corporate bonds $ 314,317 $ 311,567 $ 308,816 $ 306,066 $ 303,316
+Added: Treasury notes 44,298 43,911 43,523 43,135 42,748
Asset-backed securities 19,658 19,486 19,314 19,142 18,970
−Removed: Treasury bills 56,485 56,016 55,546 55,077 54,608
−Removed: Agency bonds 16,126 15,992 15,858 15,724 15,590
Sovereign bonds 2,003 1,986 1,969 1,951 1,933
−Removed: Municipal bonds 635 630 624 619 614
$ 380,276 $ 376,950 $ 373,622 $ 370,294 $ 366,967
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.