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For financial market risks related to changes in interest rates, marketable equity security prices, and foreign currency exchange rates, refer to Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk”, in our 2022 Form 10-K.
−Removed: Other than as noted below, our exposure related to market risk has not changed materially since June 27, 2021.
−Removed: All of the potential changes noted below are based on sensitivity analysis performed on our financial position as of March 27, 2022.
−Removed: Actual results may differ materially.
−Removed: Fixed Income Securities
−Removed: Our investments in various interest earning securities carry a degree of market risk for changes in interest rates.
−Removed: At any time, a sharp rise in interest rates could have a material adverse impact on the fair value of our fixed income investment portfolio.
−Removed: Conversely, declines in interest rates could have a material adverse impact on interest income for our investment portfolio.
−Removed: 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.
−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 March 27, 2022, were as follows:
−Removed: Valuation of Securities
−Removed: Given an Interest Rate
−Removed: Decrease of X Basis Points Fair Value
−Removed: March 27, 2022 Valuation of Securities
−Removed: Given an Interest Rate
−Removed: Increase of X Basis Points
−Removed: (150 BPS) (100 BPS) (50 BPS) 0.00% 50 BPS 100 BPS 150 BPS
−Removed: (in thousands)
−Removed: Corporate notes and bonds $ 161,841 $ 161,253 $ 160,662 $ 160,072 $ 159,481 $ 158,890 $ 158,299
−Removed: 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.
−Removed: The portfolio includes only marketable securities with active secondary or resale markets to achieve portfolio liquidity and maintain a prudent amount of diversification.
−Removed: Equity Price Risk
−Removed: 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 March 27, 2022, were as follows:
−Removed: Valuation of Securities
−Removed: Given an X Decrease
−Removed: in Stock Price Fair Value
−Removed: March 27, 2022 Valuation of Securities
−Removed: Given an X Increase
−Removed: in Stock Price
−Removed: (25)% (15)% (10)% 0.00% 10% 15% 25%
−Removed: (in thousands)
−Removed: Corporate equities $ 49,976 $ 56,639 $ 59,971 $ 66,634 $ 73,297 $ 76,629 $ 83,293
−Removed: Mutual funds 83,303 $ 94,410 $ 99,964 111,071 $ 122,178 $ 127,732 $ 138,839
−Removed: Total $ 133,279 $ 151,049 $ 159,935 $ 177,705 $ 195,475 $ 204,361 $ 222,132
+Added: Our exposure related to market risk has not changed materially since June 26, 2022.
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.