6 unchanged sentences
Inflationary factors may adversely affect our operating results.
−Removed: Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of expenses as a percentage of revenue if our revenue does not correspondingly increase with inflation.
+Added: Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, the current high rate of inflation may have an adverse effect on our ability to maintain current levels of expenses as a percentage of revenue if our revenue does not correspondingly increase with inflation.
Concentration of credit risk
4 unchanged sentences
Our accounts receivable balance as of January 31, 2022 was $87.4 million.
−Removed: 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;
−Removed: however, the extent to which the ongoing COVID-19 pandemic will negatively impact our credit risk is highly uncertain and cannot be accurately predicted.
+Added: We have not experienced any significant write-offs to our accounts receivable and believe that we are not exposed to significant
+Added: 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 remains 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.
1 unchanged sentence
HSA Assets and Client-held funds.
−Removed: Our HSA Assets consists of custodial HSA funds we hold in custody on behalf of our members.
−Removed: As of January 31, 2021, we had HSA Assets of approximately $14.3 billion.
+Added: HSA Assets consist of custodial HSA funds we hold in custody on behalf of our members.
+Added: As of January 31, 2022, we held in custody HSA Assets of approximately $19.6 billion.
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.
−Removed: The contract terms typically range from three to five years and have either fixed or variable interest rates.
−Removed: 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.
−Removed: 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.
+Added: Custodial cash assets held by our insurance company partners are held in group annuity contracts or similar arrangements.
+Added: The lengths of our agreements with Depository Partners typically range from three to five years and have either fixed or variable interest rates.
+Added: As HSA Assets increase and existing contracts with Depository Partners 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: The diversification of HSA Assets placed among our Depository Partners and insurance company 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.
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.
1 unchanged sentence
An increase in our yield would increase our custodial revenue as a percentage of total revenue.
−Removed: 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.
+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 insurance company 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.
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.
−Removed: Our Client-held funds are interest earning deposits from which we generate custodial revenue.
−Removed: As of January 31, 2021, we had Client-held funds of $986 million.
+Added: Client-held funds are interest earning deposits from which we generate custodial revenue.
+Added: As of January 31, 2022, we held Client-held funds of $897 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.
8 unchanged sentences
As of January 31, 2022, we had unrestricted cash and cash equivalents of $225.4 million.
−Removed: Due to the short-term
−Removed: 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.
−Removed: Credit agreement.
−Removed: At January 31, 2021, we had $1.00 billion outstanding under our term loan facility and no amounts drawn under our revolving credit facility.
+Added: 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: Long-term debt.
+Added: As of January 31, 2022, we had $350.0 million outstanding under our Term Loan Facility and no amounts drawn under our Revolving Credit Facility.
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 1.87% at January 31, 2021.
+Added: The interest rate on our Term Loan Facility and Revolving Credit Facility is variable and was 1.88% at January 31, 2022.
Accordingly, we may incur additional expense if interest rates increase in future periods.
For example, a one percent increase in the interest rate on the amount outstanding under our credit facilities at January 31, 2022 would result in approximately $3.5 million of additional interest expense over the next 12 months.
+Added: The interest rate on our $600 million of unsecured Senior Notes due 2029 is fixed at 4.50%.
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.