5 unchanged sentences
We are exposed to interest-rate risk relating to our investment portfolio and from interest-rate sensitive assets underlying the customer balances we hold on our condensed consolidated balance sheets as customer accounts.
−Removed: As of June 30, 2021 and December 31, 2020, approximately 36% and 30%, respectively, of our total cash, cash equivalents, and investment portfolio (excluding restricted cash and strategic investments) was held in cash and cash equivalents.
+Added: As of September 30, 2021 and December 31, 2020, approximately 47% and 30%, respectively, of our total cash, cash equivalents, and investment portfolio (excluding restricted cash and strategic investments) was held in cash and cash equivalents.
The assets underlying the customer balances that we hold on our condensed consolidated balance sheets as customer accounts are maintained in interest and non-interest bearing bank deposits, time deposits, and available-for-sale debt securities.
1 unchanged sentence
We do not pay interest on amounts due to customers.
−Removed: If interest rates increased by 100 basis points, the fair value of our available-for-sale debt securities investment portfolio would have decreased by approximately $235 million and $173 million at June 30, 2021 and December 31, 2020, respectively.
+Added: If interest rates increased by 100 basis points, the fair value of our available-for-sale debt securities investment portfolio would have decreased by approximately $243 million and $173 million at September 30, 2021 and December 31, 2020, respectively.
We have $9.0 billion in fixed rate debt with varying maturity dates.
5 unchanged sentences
As a result, we are exposed to the risk related to fluctuations in interest rate to the extent of our borrowings.
−Removed: As of both June 30, 2021 and December 31, 2020, we had no amount outstanding under this credit facility.
+Added: As of both September 30, 2021 and December 31, 2020, we had no amount outstanding under this credit facility.
For additional information, see “Note 12—Debt” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.
20 unchanged sentences
We considered the historical trends in foreign currency exchange rates and determined that it was reasonably possible that changes in exchange rates of 20% for all currencies could be experienced in the near term.
−Removed: dollar weakened by 20% at June 30, 2021 and December 31, 2020, the amount recorded in AOCI related to our foreign currency exchange forward contracts, before taxes, would have been approximately $1.1 billion lower at each of those respective dates.
−Removed: dollar strengthened by 20% at June 30, 2021 and December 31, 2020, the amount recorded in AOCI related to our foreign currency exchange forward contracts, before taxes, would have been approximately $1.1 billion higher at each of those respective dates.
+Added: dollar weakened by 20% at September 30, 2021 and December 31, 2020, the amount recorded in AOCI related to our foreign currency exchange forward contracts, before taxes, would have been approximately $1.0 billion and $1.1 billion lower, respectively.
+Added: dollar strengthened by 20% at September 30, 2021 and December 31, 2020, the amount recorded in AOCI related to our foreign currency exchange forward contracts, before taxes, would have been approximately $1.0 billion and $1.1 billion higher, respectively.
We have an additional foreign currency exchange management program in which we use foreign currency exchange contracts to offset the foreign currency exchange risk on our assets and liabilities denominated in currencies other than the functional currency of our subsidiaries.
1 unchanged sentence
The foreign currency exchange gains and losses on our assets and liabilities are recorded in other income (expense), net, and are offset by the gains and losses on the foreign currency exchange contracts.
−Removed: Adverse changes in exchange rates of 20% for all currencies would have resulted in an adverse impact on income before income taxes of approximately $418 million and $353 million at June 30, 2021 and December 31, 2020, respectively, without considering the offsetting effect of foreign currency exchange contracts.
−Removed: Foreign currency exchange contracts in place as of June 30, 2021 would have positively impacted income before income taxes by approximately $434 million, resulting in a net positive impact of approximately $16 million.
+Added: Adverse changes in exchange rates of 20% for all currencies would have resulted in an adverse impact on income before income taxes of approximately $952 million and $353 million at September 30, 2021 and December 31, 2020, respectively, without considering the offsetting effect of foreign currency exchange contracts.
+Added: Foreign currency exchange contracts in place as of September 30, 2021 would have positively impacted income before income taxes by approximately $1.0 billion, resulting in a net positive impact of approximately $49 million.
Foreign currency exchange contracts in place as of December 31, 2020 would have positively impacted income before income taxes by approximately $369 million, resulting in a net positive impact of approximately $16 million.
2 unchanged sentences
Our strategic investments are subject to a variety of market-related risks that could substantially reduce or increase the carrying value of the portfolio.
−Removed: As of both June 30, 2021 and December 31, 2020, our strategic investments totaled $3.2 billion which represented approximately 16% and 17% of our total cash, cash equivalents, and investment portfolio at each of those respective dates.
+Added: As of September 30, 2021 and December 31, 2020, our strategic investments totaled $3.5 billion and $3.2 billion, respectively, which represented approximately 17% of our total cash, cash equivalents, and investment portfolio at each of those respective dates.
Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies.
2 unchanged sentences
These changes could be material based on market conditions.
−Removed: A hypothetical adverse change of 10% in the carrying value of our strategic investments as of June 30, 2021, which could be experienced in the near term, would have resulted in a decrease of approximately $317 million to the carrying value of the portfolio.
+Added: A hypothetical adverse change of 10% in the carrying value of our strategic investments as of September 30, 2021, which could be experienced in the near term, would have resulted in a decrease of approximately $348 million to the carrying value of the portfolio.
We review our non-marketable equity investments accounted for under the Measurement Alternative for impairment when events and circumstances indicate a decline in fair value of such assets below carrying value.
Our analysis includes a review of recent operating results and trends, recent purchases and sales of securities, and other publicly available data.
−Removed: CONTROLS PROCEDURES
−Removed: (a) Evaluation of disclosure controls and procedures.
−Removed: Based on the evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) required by Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, our Chief Executive Officer and our Chief Financial Officer have concluded that as of the end of the period covered by this report, our disclosure controls and procedures were effective.
−Removed: (b) Changes in internal controls.
−Removed: There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
−Removed: OTHER INFORMATION
−Removed: LEGAL PROCEEDINGS
−Removed: The information set forth under “Note 13—Commitments and Contingencies—Litigation and Regulatory Matters” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q is incorporated herein by reference.
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.