Quantitative and Qualitative Disclosures About Market Risk
−Removed: In March 2020, the World Health Organization announced that COVID-19 had become pandemic.
−Removed: The subsequent global stay-at-home orders resulted in significant travel restrictions and business closures.
−Removed: These actions have led to global economic disruptions.
−Removed: We are continuing to monitor the efforts to mitigate the spread of COVID-19, including uncertainty around the duration and extent of the stay-at-home orders and the effect on the Company’s results of operations, financial condition, and liquidity.
−Removed: In light of the economic disruption, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply the Company’s significant accounting policies.
−Removed: As the situation continues to develop, we may make changes to these estimates and judgments over time, which could result in meaningful impacts to the Company’s financial statements in future periods.
+Added: The Company continues to monitor the global economic uncertainty as a result the COVID-19 pandemic to assess the impact on its results of operations, financial condition, and liquidity.
Actual results and outcomes may differ from management’s estimates and assumptions.
Because a portion of the Company’s net revenues are derived from its operations outside the U.S.
−Removed: and are denominated in
−Removed: local currencies, the Company is exposed to the impact of foreign currency fluctuations.
+Added: and are denominated in local currencies, the Company is exposed to the impact of foreign currency fluctuations.
The Company’s exposure to foreign currency exchange rates relates primarily to the Company’s foreign subsidiaries.
4 unchanged sentences
As a result, fluctuations in the value of foreign currencies against the U.S.
−Removed: dollar, particularly the Canadian dollar, British pound, Euro, and Australian dollar have an impact on the Company’s reported results.
+Added: dollar, particularly the Canadian dollar, British pound, Euro, Australian dollar and Brazilian real, have an impact on the Company’s reported results.
Under GAAP, revenues and expenses denominated in foreign currencies are translated into U.S.
4 unchanged sentences
During 2021, the U.S.
−Removed: dollar fluctuated and strengthened against the Canadian dollar and Australian dollar but weakened against the British pound and Euro, compared to one year ago.
−Removed: Currency exchange rates had the effect of decreasing reported service revenues by $1.6 million, or less than 0.1%, in 2020 compared to prior year.
−Removed: The general fluctuation of the U.S.
+Added: dollar fluctuated, and generally weakened, against the primary currencies in which the Company conducts business, compared to one year ago.
+Added: Currency exchange rates had the effect of increasing reported service revenues by $56.9 million, or 1.1%, in 2021, compared to the prior year.
+Added: The general weakening of the U.S.
dollar also affected the reported level of expenses incurred in the Company’s foreign operations.
−Removed: Because substantially all of the Company’s foreign operations generated revenues and incurred expenses within the same country and currency, the effect of lower reported revenues is largely offset by the decrease in reported operating expenses.
−Removed: Reported net income was $0.9 million, or 0.2%, lower in the year ended December 31, 2020, compared to prior year due to the effect of currency exchange rates.
+Added: Because substantially all the Company’s foreign operations generated revenues and incurred expenses within the same country and currency, the effect of higher reported revenues is largely offset by the increase in reported operating expenses.
+Added: Reported net income was $3.4 million, or 1.1%, higher in 2021 compared to the prior year due to the effect of currency exchange rates.
For the one month ended January 31, 2022, the U.S.
−Removed: dollar has strengthened against the Euro, Canadian dollar, and Australian dollar and weakened against the British pound, since December 31, 2020.
−Removed: If currency exchange rates were to remain at January 2021 levels throughout 2021, the currency impact on the Company’s full-year reported revenues and operating expenses would be nearly flat compared to full year 2020 results.
−Removed: Should current trends continue, the impact on reported net income would be immaterial.
+Added: dollar has strengthened against the Euro, Canadian Dollar, British Pound and Australian Dollar and weakened against the Brazilian Real since December 31, 2021.
+Added: If currency exchange rates were to remain at January 2022 levels throughout 2022, the currency impact on the Company’s full-year reported revenues would be unfavorable, offset by a favorable impact on operating expenses.
+Added: These results will likely have an immaterial impact on reported net income.
Fluctuations in currency exchange rates impact the U.S.
9 unchanged sentences
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.