QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Interest Rate Risk
−Removed: We are exposed to interest rate risk related to our portfolio of investments in debt securities and the debt that we have issued.
−Removed: We account for our investments in debt securities at fair value, with unrealized gains or losses recorded as a component of other comprehensive income.
−Removed: We believe that our exposure to interest rate risk is not material as all investments other than equity and long-term investments were in money market funds as of December 31, 2021.
−Removed: We account for our 2023 Notes and 2025 Notes on an amortized cost basis and our recognized value of the debt does not reflect changes in fair value.
−Removed: Also, because our 2023 Notes and 2025 Notes bear interest at a fixed rate, our cash flows are not subject to variability as a result of changes in interest rates.
−Removed: However, we do disclose the estimated fair value of our debt and we are exposed to changes in fair value that may occur as a result of interest rate fluctuations.
−Removed: As of December 31, 2021, based on available pricing information, the fair values of our 2023 Notes and 2025 Notes were estimated to be $261.8 million and $234.5 million, respectively.
−Removed: The 2023 Notes and 2025 Notes bear interest at a fixed rate of 2.125% and 2.5%, respectively.
+Added: As of December 31, 2022, our debt bears fixed interest rates and we had no outstanding debt with variable interest rates.
+Added: Our cash flows on these debt obligations are not subject to variability as a result of changes in interest rates.
+Added: We are exposed to changes in the fair value of certain of our investments in equity and debt securities.
+Added: Fluctuations in the underlying fair value of the investments could result in material gains or losses.
+Added: Refer to Note 6 “Equity and Long-Term Investments and Fair Value Measurements”
+Added: to the Consolidated Financial Statements for more information.
+Added: Inflation has increased during the period covered by this Annual Report on Form 10-K and could continue to increase for the near future.
+Added: Inflationary factors, such as increases in the cost of our raw materials, supplies, interest rates and overhead costs may adversely affect our operating results.
+Added: Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future if inflation rates continue to rise.
+Added: Significant adverse changes in inflation and prices in the future could result in material losses.
+Added: We may face foreign exchange risk as a result of entering into transactions denominated in currencies other than U.S.
+Added: dollars, including contracts with international vendors related to raw material purchases.
+Added: Our royalty revenue from RELVAR ® /BREO ® ELLIPTA ® and ANORO ® ELLIPTA ® is also indirectly exposed to foreign exchange risk as GSK also markets and sells the products outside the U.S.
+Added: The majority of our cash and cash equivalents, investments, and the majority of our vendor relationships are denominated in U.S.
+Added: Therefore, we do not believe that the risk of a significant impact on our operating income from foreign currency fluctuations is substantial.
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.