3 unchanged sentences
Investments classified as trading securities are recorded at fair value based upon quoted market prices.
−Removed: Any material differences between the cost and fair value of trading securities is recognized as other expense, net in our Consolidated Statement of Operations.
+Added: Any material differences between the cost and fair value of trading securities is recognized as other income (expense), net in our Consolidated Statement of Operations.
All of our other investments are classified as available-for-sale and consequently are recorded in the Consolidated Balance Sheets at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income, net of tax.
+Added: Lam Research Corporation 2022 10-K 35
Interest Rate Risk
3 unchanged sentences
Conversely, declines in interest rates could have a material adverse impact on interest income for our investment portfolio.
−Removed: We target a capital preservation-focused investment policy, which focuses on the safety and preservation of our capital by limiting default risk, market risk, reinvestment risk, and concentration risk.
−Removed: The following table presents the hypothetical fair values of fixed-income securities that would result from selected potential decreases and increases in interest rates.
−Removed: Market changes reflect immediate hypothetical parallel shifts in the yield curve of plus or minus 50 basis points (“BPS”), 100 BPS, and 150 BPS with a minimum interest rate of zero BPS.
−Removed: The hypothetical fair values as of June 27, 2021,were as follows:
−Removed: Valuation of Securities
−Removed: Given an Interest Rate
−Removed: Decrease of X Basis Points Fair Value
−Removed: as of Valuation of Securities
−Removed: Given an Interest Rate
−Removed: Increase of X Basis Points
−Removed: (150 BPS) (100 BPS) (50 BPS) —% 50 BPS 100 BPS 150 BPS
−Removed: (in thousands)
−Removed: Treasury and agencies $ 204,944 $ 204,944 $ 204,944 $ 204,792 $ 204,336 $ 203,880 $ 203,424
−Removed: Government-sponsored enterprises 3,518 3,518 3,518 3,505 3,477 3,449 3,421
−Removed: Foreign government bonds 33,093 33,093 33,093 33,012 32,905 32,798 32,691
−Removed: Corporate notes and bonds 1,049,766 1,049,722 1,049,230 1,045,098 1,039,800 1,034,503 1,029,206
−Removed: Mortgage backed securities - residential 5,777 5,753 5,728 5,677 5,619 5,562 5,505
−Removed: Mortgage backed securities - commercial 18,977 18,973 18,918 18,788 18,643 18,498 18,353
−Removed: Total $ 1,316,075 $ 1,316,003 $ 1,315,431 $ 1,310,872 $ 1,304,780 $ 1,298,690 $ 1,292,600
+Added: We target to maintain a conservative investment policy, which focuses on the safety and preservation of our capital by limiting default risk, market risk, reinvestment risk, and concentration risk.
+Added: As of June 26, 2022, our fixed income securities total $135.7 million.
+Added: Market changes with hypothetical parallel shifts in the yield curve of plus or minus 50 basis points (“BPS”), 100 BPS, and 150 BPS, with a minimum interest rate of zero BPS, are not significant.
We mitigate default risk by investing in high credit quality securities and by positioning our portfolio to respond appropriately to a significant reduction in a credit rating of any investment issuer or guarantor.
2 unchanged sentences
As of June 26, 2022, we had $5.0 billion in principal amount of fixed-rate long-term debt outstanding, with a fair value of $4.5 billion.
−Removed: The fair value of our Notes is subject to interest rate risk, market risk, and other factors due to the convertible feature, as applicable.
+Added: The fair value of our Notes is subject to interest rate risk and market risk.
Generally, the fair value of Notes will increase as interest rates fall and decrease as interest rates rise.
1 unchanged sentence
We do not carry the Notes at fair value but present the fair value of the principal amount of our Notes for disclosure purposes.
−Removed: Lam Research Corporation 2021 10-K 37
Equity Price Risk
1 unchanged sentence
The values of our investments in publicly traded securities, including mutual funds related to our obligations under our deferred compensation plans, are subject to market price risk.
−Removed: The following table presents the hypothetical fair values of our publicly traded securities that would result from potential decreases and increases in the price of each security in the portfolio.
−Removed: Potential fluctuations in the price of each security in the portfolio of plus or minus 10%, 15%, or 25% were selected based on potential near-term changes in those security prices.
−Removed: The hypothetical fair values as of June 27, 2021, were as follows:
−Removed: Valuation of Securities
−Removed: Given an X% Decrease
−Removed: in Stock Price Fair Value
−Removed: as of Valuation of Securities
−Removed: Given an X% Increase
−Removed: in Stock Price
−Removed: (25)% (15)% (10)% —% 10% 15% 25%
−Removed: (in thousands)
−Removed: Mutual funds $ 72,128 $ 81,745 $ 86,554 $ 96,171 $ 105,788 $ 110,597 $ 120,214
+Added: As of June 26, 2022, our publicly traded securities total $95.2 million.
+Added: Potential fluctuations in the price of each security in the portfolio of plus or minus 10%, 15%, or 25% are not significant.
Foreign Currency Exchange (“FX”) Risk
10 unchanged sentences
We also enter into foreign currency forward contracts to hedge the gains and losses generated by the remeasurement of certain non-U.S.-dollar denominated monetary assets and liabilities, primarily cash, third-party accounts receivable, accounts payable, and intercompany receivables and payables.
−Removed: The change in fair value of these balance sheet hedge contracts is recorded into earnings as a component of other expense, net, and offsets the change in fair value of the foreign currency denominated monetary assets and liabilities also recorded in other expense, net, assuming the hedge contract fully covers the hedged items.
+Added: The change in fair value of these balance sheet hedge contracts is recorded into earnings as a component of other income (expense), net, and offsets the change in fair value of the foreign currency denominated monetary assets and liabilities also recorded in other income (expense), net, assuming the hedge contract fully covers the hedged items.
The notional amount and unrealized gain of our outstanding forward and option contracts that are designated as cash flow hedges, as of June 26, 2022, are shown in the table below.
This table also shows the change in fair value of these cash flow hedges assuming a hypothetical foreign currency exchange rate movement of plus or minus 10 percent and plus or minus 15 percent.
+Added: Lam Research Corporation 2022 10-K 36
Amount Unrealized FX
3 unchanged sentences
(in thousands)
−Removed: Forward contracts
+Added: Forward contracts, cash flow hedges
Sell Japanese yen $ 541,999 $ 27,396 $ 50,808 $ 76,213
Buy Euro 150,020 (9,365) 13,927 20,891
−Removed: Buy Korean won 145,167 (1,518) 14,363 21,544
Buy Indian rupee 70,768 (630) 7,109 10,663
+Added: Buy Korean won 57,220 (4,110) 5,287 7,930
Buy Malaysian ringgit 28,203 133 2,793 4,189
$ 13,424 $ 79,924 $ 119,886
−Removed: Option Contracts
−Removed: Buy put Japanese yen $ 35,877 $ 541 $ 3,080 $ 4,457
−Removed: Sell call Japanese yen 38,069 (178) 4 —
−Removed: $ 363 $ 3,084 $ 4,457
−Removed: Lam Research Corporation 2021 10-K 38
The notional amount and unrealized loss of our outstanding foreign currency forward contracts that are designated as balance sheet hedges, as of June 26, 2022, are shown in the table below.
This table also shows the change in fair value of these balance sheet hedges, assuming a hypothetical foreign currency exchange rate movement of plus or minus 10 percent and plus or minus 15 percent.
−Removed: These changes in fair values would be offset in other expense, net, by corresponding change in fair values of the foreign currency denominated monetary assets and liabilities, assuming the hedge contract fully covers the intercompany and trade receivable balances.
+Added: These changes in fair values would be offset in other income (expense), net, by corresponding change in fair values of the foreign currency denominated monetary assets and liabilities, assuming the hedge contract fully covers the intercompany and trade receivable balances.
Amount Unrealized FX
3 unchanged sentences
(in thousands)
−Removed: Forward contracts, balance sheet hedge
+Added: Forward contracts, balance sheet hedges
Sell Korean won $ 322,808 $ 6 $ 32,261 $ 48,391
−Removed: Buy Swiss francs 79,859 (10) 7,980 11,970
Buy Chinese renminbi 64,434 12 6,447 9,671
−Removed: Buy Singapore dollar 26,765 1 2,677 4,015
Buy Euro 43,321 (18) 4,324 6,486
+Added: Buy Taiwan dollar 33,752 (33) 3,360 5,041
Buy British pound 20,983 (2) 2,097 3,146
−Removed: Buy Malaysian ringgit
−Removed: 10,553 22 1,056 1,585
−Removed: Sell Japanese yen 8,746 — 874 1,312
−Removed: Buy Indian rupee 3,082 2 309 464
+Added: Buy Singapore dollar 12,243 (1) 1,224 1,836
+Added: Buy Swiss francs 8,841 (3) 883 1,324
+Added: Sell Indian rupee 3,060 (4) 307 460
+Added: Sell Malaysian ringgit
+Added: Buy Japanese yen 736 — 74 111
$ (43) $ 51,068 $ 76,602
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.