Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are exposed to various market risks, including fluctuation in foreign currency exchange rate and interest rates.
+Added: We are exposed to various market risks, including fluctuation in foreign currency exchange rates and interest rates.
Market risk is the potential loss arising from adverse changes in market rates and prices.
4 unchanged sentences
dollars while the majority of our European sales are denominated in Euros.
+Added: In addition, we acquired MedSupport in the second quarter of 2017 with net assets denominated in Euros.
Our results of operations, certain balance sheet balances and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates.
1 unchanged sentence
We have experienced and will continue to experience fluctuations in our net income or loss as a result of transaction gains or losses related to revaluing certain current asset and current liability balances that are denominated in currencies other than the functional currency in which they are recorded.
−Removed: The effect of a 10% adverse change in exchange rates on foreign denominated cash, receivables and payables as of September 30, 2020 would not have had a material effect on our financial position, results of operations or cash flows.
+Added: The effect of a 10% adverse change in exchange rates on foreign denominated cash, receivables and payables as of March 31, 2021 would not have had a material effect on our financial position, results of operations or cash flows.
As our operations in countries outside of the United States grow, our results of operations and cash flows will be subject to fluctuations due to changes in foreign currency exchange rates, which could harm our business in the future.
−Removed: We enter into foreign exchange forward contracts to protect our forecasted U.S.
+Added: We began entering into foreign exchange forward contracts in December 2015 to protect our forecasted U.S.
dollar-equivalent earnings from adverse changes in foreign currency exchange rates.
1 unchanged sentence
We performed a sensitivity analysis assuming a hypothetical 10% adverse movement in foreign exchange rates to the hedging contracts and the underlying exposures described above.
−Removed: As of September 30, 2020, the analysis indicated that these hypothetical market movements would not have a material effect on our financial position, results of operations or cash flows.
−Removed: We estimate prior to any hedging activity that a 10% adverse change in exchange rates on our foreign denominated sales would have resulted in a $3.7 million decline in revenue for the nine months ended September 30, 2020.
+Added: As of March 31, 2021, the analysis indicated that these hypothetical market movements would not have a material effect on our financial position, results of operations or cash flows.
+Added: We estimate prior to any hedging activity that a 10% adverse change in exchange rates on our foreign denominated sales would have resulted in a $1.2 million decline in revenue for the three months ended March 31, 2021.
We designate these forward contracts as cash flow hedges for accounting purposes.
2 unchanged sentences
Changes in the time value are coded in other income (expense), net.
−Removed: Changes in the intrinsic value are recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into revenue to offset the hedged exposures as they occur.
+Added: Changes in the intrinsic value are recorded as a component of accumulated other comprehensive income and subsequently reclassified into revenue to offset the hedged exposures as they occur.
Interest rate fluctuation risk
−Removed: We had cash and cash equivalents of $214.0 million as of September 30, 2020, which consisted of highly-liquid investments with a maturity of three months or less.
+Added: We had cash and cash equivalents of $220.0 million as of March 31, 2021, which consisted of highly-liquid investments with a maturity of three months or less, and $13.1 million of marketable securities with maturity dates of greater than three months.
The primary goals of our investment policy are liquidity and capital preservation.
1 unchanged sentence
We believe that we do not have any material exposure to changes in the fair value of these assets as a result of changes in interest rates due to the short-term nature of our cash and cash equivalents.
−Removed: Declines in interest rates, however, would reduce future investment interest income.
+Added: Declines in interest rates, however, would reduce future investment income.
We considered the historical volatility of short-term interest rates and determined that it was reasonably possible that an adverse change of 100 basis points could be experienced in the near term.
−Removed: A hypothetical 1.00% (100 basis points) increase in interest rates would not have materially impacted the fair value of our marketable securities as of September 30, 2020 and September 30, 2019.
−Removed: If overall interest rates had increased or decreased by 1.00% (100 basis points), neither our interest expense nor our interest income would have been materially affected during the three or nine months ended September 30, 2020 or September 30, 2019.
+Added: A hypothetical 1.00% (100 basis points) increase in interest rates would not have materially impacted the fair value of our marketable securities as of March 31, 2021 and March 31, 2020.
+Added: If overall interest rates had increased or decreased by 1.00% (100 basis points), neither our interest expense nor our interest income would have been materially affected during the three months ended March 31, 2021 or March 31, 2020.
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.