11 unchanged sentences
Our exposure to market risk arises principally from exchange rate risk.
−Removed: Although substantially all of our revenues are denominated in U.S.
−Removed: dollars 85.9% in the year ended December 31, 2019 or U.K.
−Removed: pounds sterling 10.2% in the year ended December 31, 2019, a substantial portion of our expenses were incurred and paid in Indian rupees and Philippine peso 25.6% and 7.9% respectively, in the year ended December 31, 2019.
−Removed: We also incur expenses in U.S.
−Removed: dollars, and currencies of the other countries in which we have operations.
+Added: Our revenues are primarily denominated in the U.S.
+Added: dollar representing 88.1% of our total revenues and the U.K.
+Added: pound sterling representing 8.3% of our total revenues in the year ended December 31, 2020.
+Added: However, a significant portion of our total expenses are incurred and paid in Indian rupee and the Philippine peso representing 27.2% and 11.5% respectively, of our total expenses in the year ended December 31, 2020.
+Added: We also incur expenses in the U.S.
+Added: dollar and currencies of other countries in which we have operations.
The exchange rates among the Indian rupee, the Philippine peso and the U.S.
6 unchanged sentences
Based upon our level of operations during the year ended December 31, 2020 and excluding any hedging arrangements that we had in place during that period, a 10% appreciation/depreciation in the Indian rupee against the U.S.
−Removed: dollar would have increased/decreased our revenues by approximately $7.3 million and increased/decreased our expenses incurred and paid in Indian rupees by approximately $23.4 million in the year ended December 31, 2019, respectively.
+Added: dollar would have increased/decreased our revenues by approximately $6.2 million and increased/decreased our expenses incurred and paid in Indian rupees by approximately $23.0 million in the year ended December 31, 2020.
Similarly, a 10% appreciation/depreciation in the Philippine peso against the U.S.
3 unchanged sentences
We do not enter into foreign currency forward contracts for speculative or trading purposes.
−Removed: As such, we may not purchase adequate contracts to insulate ourselves from Indian rupee and Philippine peso foreign exchange currency risks.
+Added: As such, we may not purchase adequate contracts to insulate ourselves from Indian rupee and the Philippine peso foreign exchange currency risks.
In addition, any such contracts may not perform adequately as a hedging mechanism.
2 unchanged sentences
Further, a significant number of our customer contracts include protection against foreign exchange rate fluctuations which minimizes the impact of volatility in the exchange rates on our operating results.
−Removed: Cash flow hedges with notional amounts of $410.4 million (including $4.3 million of range forward contracts) and $362.4 million (including $6.9 million of range forward contracts) were outstanding as at December 31, 2019 and 2018, respectively, with maturity periods of one to forty five-months.
−Removed: The fair value of these cash flow hedges as of December 31, 2019 and 2018 was $4.6 million and ($0.2) million respectively and is included in Accumulated Other Comprehensive loss on our Consolidated Balance Sheets.
+Added: Cash flow hedges with notional amounts of $451.9 million and $410.4 million (including $4.3 million of range forward contracts) were outstanding as at December 31, 2020 and 2019, respectively, with maturity periods of one to forty five-months.
+Added: The mark-to-market gain, net upon fair valuation of these cash flow hedges as of December 31, 2020 and 2019 was $16.5 million and $4.6 million, respectively, and is included in “Accumulated other comprehensive loss” on our consolidated balance sheets.
During the year ended December 31, 2020, we recognized $2.3 million as a foreign exchange gain from the maturing cash flow hedges, which was largely offset by the foreign exchange loss on the related expenses of $2.5 million.
1 unchanged sentence
We also enter into foreign currency forward contracts to economically hedge our intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies.
−Removed: These derivatives do not qualify as fair value hedges under ASC No.
−Removed: Topic 815, Derivatives and Hedging (“ASC 815”).
−Removed: Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss).
−Removed: These derivative instruments do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on the settlement of these derivatives are intended to offset revaluation losses and gains on the assets and liabilities being hedged.
−Removed: Forward exchange contracts with notional amounts of $124.0 million, GBP 10.8 million and EUR 1.3 million were outstanding at December 31, 2019 compared to $125.5 million, GBP 15.6 million and EUR 0.5 million outstanding at December 31, 2018.
−Removed: The fair values of these derivative instruments as of December 31, 2019 and 2018 were insignificant in both year and are included in the "foreign exchange gain/(loss)" in our Consolidated Statements of Income.
−Removed: At December 31, 2019, the outstanding derivative instruments had maturities of 31 days or less.
+Added: These derivatives do not qualify as fair value hedges under ASC Topic 815, Derivatives and Hedging .
+Added: Changes in the fair value of these derivatives are recognized in our consolidated statements of income and are included in “Foreign exchange gain, net”.
+Added: These derivative instruments mitigate balance sheet risk due to exchange rate movements because gains and losses on the settlement of these derivatives are intended to offset revaluation losses and gains on the foreign currency denominated monetary assets and monetary liabilities being hedged.
+Added: Forward exchange contracts with notional amounts of USD 143.4 million, GBP 6.8 million, EUR 2.4 million and COP 8,288.0 million were outstanding as of December 31, 2020 compared to USD 124.0 million, GBP 10.8 million and EUR 1.3 million outstanding at December 31, 2019.
+Added: The fair values of these derivative instruments as of December 31, 2020 and 2019 were insignificant in both year and are included in the “Foreign exchange gain, net” in our consolidated statements of income.
+Added: As of December 31, 2020, the outstanding derivative instruments had maturities of 31 days or less except for the COP contract which has a remaining maturity of 62 days.
Interest Rate Risk.
−Removed: As described in “Item 7.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” on November 21, 2017 we entered into the Credit Agreement that provides for a $200.0 million revolving credit facility and a letter of credit sub-facility.
+Added: As described in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” on November 21, 2017 we entered into the Credit Agreement that provides for a $200.0 million revolving credit facility and a letter of credit sub-facility.
We have an option to increase the commitments under the Credit Facility by up to an additional $100.0 million.
6 unchanged sentences
A 50 basis point increase or decrease in interest rates may impact our interest expense for the year ended December 31, 2020 by approximately $0.5 million.
−Removed: See Item 1A-“Risk Factors- We may be required to transition from the use of the LIBOR interest rate index in the future.
+Added: See Part I, Item 1A, “Risk Factors” under “Risks Related to Our Indebtedness-We may be required to transition from the use of the LIBOR interest rate index in the future.
We could be unable to refinance our outstanding indebtedness on reasonable terms or at all.”
−Removed: In October 2018, we issued the Notes with an aggregate principal amount of $150.0 million (see Note 18, Borrowings).
+Added: In October 2018, we issued the Notes with an aggregate principal amount of $150.0 million (see Note 18 - Borrowings to our consolidated financial statements).
The Notes bear interest at a fixed rate, so we have no financial statement impact from changes in interest rates.
−Removed: However, changes in market interest rates impact the fair value of the convertible notes along with other variables such as our credit spreads and the market price and volatility of our common stock.
+Added: However, changes in market interest rates impact the fair value of the Notes along with other variables such as our credit spreads and the market price and volatility of our common stock.
We had cash, cash equivalents and short-term investments totaling $402.8 million and $321.4 million at December 31, 2020 and 2019, respectively.
5 unchanged sentences
Declines in interest rates would reduce our future investment income.
−Removed: A 50 basis point increase or decrease in short term rates would have impacted our interest income for the year ended December 31, 2019 by approximately $1.0 million.
+Added: A 50 basis point increase or decrease in short term rates would have impacted our interest and dividend income for the year ended December 31, 2020 by approximately $0.9 million.
As of December 31, 2020 and 2019, we have accounts receivable of $147.6 million and $171.9 million, respectively.
4 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.