Quantitative and Qualitative Disclosures About Market Risk
−Removed: 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.
−Removed: 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.
3 unchanged sentences
dollar value of the Company’s reported revenues, expenses, earnings, assets and liabilities.
−Removed: For the year ended December 31, 2021, approximately 22.5% of the Company’s revenues were generated outside of the United States.
+Added: For the year ended December 31, 2022, approximately 21.1% of the Company’s revenues were generated outside of the U.S..
These operations transact business in their functional currency, which is the same as their local currency.
4 unchanged sentences
Consequently, as the value of the U.S.
−Removed: dollar changes relative to the currencies of the Company’s non-U.S.
−Removed: markets, the Company’s reported results vary.
+Added: dollar changes relative to the currencies of the Company’s international markets, the Company’s reported results vary.
During 2022, the U.S.
−Removed: dollar fluctuated, and generally weakened, against the primary currencies in which the Company conducts business, compared to one year ago.
−Removed: 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.
−Removed: The general weakening of the U.S.
−Removed: dollar also affected the reported level of expenses incurred in the Company’s foreign operations.
−Removed: 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.
−Removed: 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.
+Added: dollar generally strengthened against the primary currencies in which the Company conducts business, compared to one year ago.
+Added: Foreign currency exchange rates had the effect of decreasing reported service revenues by $139.1 million, or 2.2%, in 2022.
+Added: The general strengthening of the U.S.
+Added: dollar also affected the reported level of expenses incurred in the Company’s international operations.
+Added: Because substantially all the Company’s international 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.
+Added: Reported net income was $6.5 million, or 1.1% lower in 2022, due to the effect of foreign currency exchange rates.
For the one month ended January 31, 2023, the U.S.
−Removed: dollar has strengthened against the Euro, Canadian Dollar, British Pound and Australian Dollar and weakened against the Brazilian Real since December 31, 2021.
−Removed: 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: dollar has weakened against the Euro, British Pound, Australian Dollar, Canadian Dollar and the Brazilian Real since December 31, 2022.
+Added: If foreign currency exchange rates were to remain at January 2023 levels throughout 2023, the currency impact on the Company’s full-year reported revenues would be favorable, offset by an unfavorable impact on operating expenses.
These results will likely have an immaterial impact on reported net income.
−Removed: Fluctuations in currency exchange rates impact the U.S.
+Added: Fluctuations in foreign currency exchange rates impact the U.S.
dollar amount of the Company’s stockholders’ equity.
−Removed: The assets and liabilities of the Company’s non-U.S.
−Removed: subsidiaries are translated into U.S.
+Added: The assets and liabilities of the Company’s international subsidiaries are translated into U.S.
dollars at the exchange rates in effect at period end.
−Removed: The resulting translation adjustments are recorded in stockholders’ equity as a component of accumulated other comprehensive income.
+Added: The resulting translation adjustments are recorded in stockholders’ equity as a component of accumulated other comprehensive (income) loss.
Although currency fluctuations impact the Company’s reported results and shareholders’ equity, such fluctuations generally do not affect cash flow or result in actual economic gains or losses.
−Removed: The Company generally has few cross-border transfers of funds, except for transfers to the U.S.
−Removed: for payment of intercompany loans, working capital loans made between the U.S.
−Removed: and the Company’s foreign subsidiaries, and dividends from the Company’s foreign subsidiaries.
+Added: The Company generally has few cross-border transfers of funds, consisting of dividends from the Company’s foreign subsidiaries, and transfers to and from the U.S.
+Added: related to intercompany working capital requirements.
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.