1 unchanged sentence
Interest Rate Risk
−Removed: Our earnings and cash flows are subject to fluctuations due to changes in interest rates, principally in connection with our investments in marketable securities, which consist primarily of corporate bonds.
+Added: Our earnings and cash flows are subject to fluctuations due to changes in interest rates, principally in connection with our investments in marketable securities, which consist primarily of corporate bonds and U.S.
+Added: treasury securities.
We do not believe we are materially exposed to changes in interest rates related to our investments, and we do not currently use interest rate derivative instruments to manage exposure to interest rate changes of our investments.
3 unchanged sentences
Our interest rate exposure is primarily offset by our investments in marketable securities.
−Removed: In addition, we further manage our interest rate exposure related to our variable rate lease through the use of derivative instruments.
−Removed: All of our derivative instruments are utilized for risk management purposes and are not used for trading or speculative purposes.
−Removed: We continue to monitor our interest rate risk and may utilize additional derivative instruments and/or other strategies in the future to further mitigate our interest rate exposure.
−Removed: We have hedged a portion of our floating interest rate exposure using interest rate swap and interest rate cap contracts.
−Removed: We estimate that a 100 basis point, or 1%, unfavorable change in interest rates would not have a material impact on the fair value of our interest rate swap or interest rate cap contracts.
+Added: We continue to monitor our interest rate risk and may utilize derivative instruments and/or other strategies in the future to further mitigate our interest rate exposure.
Credit Quality Risk
4 unchanged sentences
We are also subject to credit risk in connection with trade accounts receivable due from our customers from our product sales.
−Removed: We have contractual payment terms with each of our collaborators and customers, and we monitor their financial performance and credit worthiness so that we can properly assess and respond to any changes in their credit profile.
+Added: We have contractual payment terms with each of our collaborators and customers.
+Added: We also monitor financial performance and credit worthiness so that we can properly assess and respond to any changes in collaborator and/or customer credit profiles.
In 2022, 2021 and 2020, we did not recognize any charges for write-offs and allowances of accounts receivable related to credit risk for our collaborators or customers.
−Removed: As of December 31, 2021, three customers accounted on a combined basis for 91% (including 29% related to the U.S.
−Removed: government) of our net trade accounts receivables.
+Added: As of December 31, 2022, two customers accounted on a combined basis for 86% of our net trade accounts receivables.
Foreign Exchange Risk
1 unchanged sentence
In addition, pursuant to the applicable terms of the agreements with our collaborators, we also share in certain worldwide development expenses incurred by our collaborators.
−Removed: We also incur worldwide development expenses for clinical products we are developing independently, in addition to incurring expenses outside of the United States in connection with our international operations.
+Added: We also incur worldwide development expenses for clinical products we are developing independently, incur expenses outside of the United States in connection with our international operations, and, effective July 1, 2022, market Libtayo outside of the United States as a result of obtaining worldwide rights to Libtayo under an A&R IO LCA with Sanofi.
Therefore, significant changes in foreign exchange rates of the countries outside the United States where our products are sold, where development expenses are incurred by us or our collaborators, or where we incur operating expenses can impact our operating results and financial condition.
4 unchanged sentences
Changes in the fair value of our equity investments are included in Other income (expense), net on the Consolidated Statements of Income.
−Removed: We recorded $386.1 million and $196.0 million of net unrealized gains on equity securities in Other income (expense), net for the years ended December 31, 2021 and 2020, respectively.
+Added: We recorded $39.8 million of net unrealized losses and $386.1 million of net unrealized gains on equity securities in Other income (expense), net in 2022 and 2021, respectively.
Financial Statements and Supplementary Data
−Removed: The information required by this Item is included on pages F-1 through F-42 of this report and is incorporated herein by reference.
+Added: The information required by this Item is set forth beginning on page F-1 of this report and is incorporated herein by reference.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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.