3 unchanged sentences
A significant downturn in this market or changes in state and/or federal laws impacting the preferential tax treatment of healthcare accounts such as HSAs could have a material adverse effect on our results of operations.
−Removed: During the years ended January 31, 2020, 2019, and 2018, no one customer accounted for greater than 10% of our total revenue.
+Added: During the fiscal years ended January 31, 2021, 2020, and 2019, no one customer accounted for greater than 10% of our total revenue.
We monitor market and regulatory changes regularly and make adjustments to our business if necessary.
4 unchanged sentences
We maintain our cash and cash equivalents in bank and other depository accounts, which frequently may exceed federally insured limits.
−Removed: Our cash and cash equivalents as of January 31, 2020 were $191.7 million, of which $2.3 million was covered by federal depository insurance.
+Added: Our cash and cash equivalents as of January 31, 2021 were $328.8 million, the vast majority of which was not covered by federal depository insurance.
We have not experienced any material losses in such accounts and believe we are not exposed to any significant credit risk with respect to our cash and cash equivalents.
1 unchanged sentence
We have not experienced any significant write-offs to our accounts receivable and believe that we are not exposed to significant credit risk with respect to our accounts receivable;
+Added: however, the extent to which the ongoing COVID-19 pandemic will negatively impact our credit risk is highly uncertain and cannot be accurately predicted.
We continue to monitor our credit risk and place our cash and cash equivalents with reputable financial institutions.
3 unchanged sentences
As of January 31, 2021, we had HSA Assets of approximately $14.3 billion.
−Removed: As a non-bank custodian, we contract with our Depository Partners and an insurance company partner to hold custodial cash assets on behalf of our members, and we earn a significant portion of our total revenue from interest paid to us by these partners.
−Removed: The contract terms generally range from three to five years and have either fixed or variable interest rates.
−Removed: As our HSA Assets increase and existing agreements expire, we seek to enter into new contracts with Depository Partners, the terms of which are impacted by the then-prevailing interest rate environment.
+Added: As a non-bank custodian, we contract with our Depository Partners and insurance company partners to hold custodial cash assets on behalf of our members, and we earn a significant portion of our total revenue from interest paid to us by these partners.
+Added: The contract terms typically range from three to five years and have either fixed or variable interest rates.
+Added: As our HSA Assets increase and existing contracts expire, we seek to enter into new contracts with Depository Partners, the terms of which are impacted by the then-prevailing interest rate environment.
The diversification of deposits among Depository Partners and varied contract terms substantially reduces our exposure to short-term fluctuations in prevailing interest rates and mitigates the short-term impact of a sustained increase or decline in prevailing interest rates on our custodial revenue.
2 unchanged sentences
An increase in our yield would increase our custodial revenue as a percentage of total revenue.
−Removed: In addition, as our yield increases, we expect the spread to grow between the interest offered to us by our Depository Partners and the interest retained by our members, thus increasing our profitability.
+Added: In addition, if our yield increases, we expect the spread to also increase between the interest offered to us by our Depository Partners and the interest retained by our members, thus increasing our profitability.
However, we may be required to increase the interest retained by our members in a rising prevailing interest rate environment.
−Removed: Changes in prevailing interest rates are driven by macroeconomic trends and government policies over which we have no control.
+Added: Changes in prevailing interest rates are driven by macroeconomic trends and government policies over which we have no control, such as the interest rate cuts by the Federal Reserve associated with the ongoing COVID-19 pandemic.
Our Client-held funds are interest earning deposits from which we generate custodial revenue.
−Removed: As of January 31, 2020, we had Client-held funds of approximately $779.0 million.
+Added: As of January 31, 2021, we had Client-held funds of $986 million.
These deposits are amounts remitted by Clients and held by us on their behalf to pre-fund and facilitate administration of our other CDBs.
1 unchanged sentence
We deposit the Client-held funds with our Depository Partners in interest-bearing, demand deposit accounts that have a floating interest rate and no set term or duration.
−Removed: A sustained decline in prevailing interest rates may negatively affect our business by reducing the size of the interest rate yield, or yield, available to us and thus the amount of the custodial revenue we can realize from Client-held funds.
+Added: A sustained decline in prevailing interest rates may negatively affect our business by reducing the size of the yield available to us and thus the amount of the custodial revenue we can realize from Client-held funds.
Changes in prevailing interest rates are driven by macroeconomic trends and government policies over which we have no control.
4 unchanged sentences
As of January 31, 2021, we had unrestricted cash and cash equivalents of $328.8 million.
−Removed: Due to the short-term nature of these instruments, we believe that we do not have any material exposure to changes in the fair value of our cash and cash equivalents as a result of changes in interest rates.
+Added: Due to the short-term
+Added: nature of these instruments, we believe that we do not have any material exposure to changes in the fair value of our cash and cash equivalents as a result of changes in interest rates.
Credit agreement.
1 unchanged sentence
Our overall interest rate sensitivity under these credit facilities is primarily influenced by any amounts borrowed and the prevailing interest rates on these instruments.
−Removed: The interest rate on our Term Loan Credit Facility and Revolving Credit Facility is variable and was 3.65 percent at January 31, 2020.
+Added: The interest rate on our term loan credit facility and revolving credit facility is variable and was 1.87% at January 31, 2021.
Accordingly, we may incur additional expense if interest rates increase in future periods.
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.