Quantitative and Qualitative Disclosures about Market Risk
−Removed: Interest Rate Risk
−Removed: Our cash, cash equivalents, and restricted cash primarily consist of cash on hand and highly liquid investments in money market instruments, certificates of deposits, commercial papers, and United States Treasury securities with maturities of
−Removed: three months or less.
+Added: Interest Rate and Market Price Risk
+Added: Our cash, cash equivalents, and short-term investments primarily consist of cash on hand and investments in money market instruments, United States Treasury securities, commercial paper, and term deposits with maturities up to 12 months.
We do not enter into investments for trading or speculative purposes.
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Due to the short-term nature of our investment portfolio, we do not believe a hypothetical 100 basis point increase or decrease in interest rates would have a material effect on the fair market value of our portfolio.
+Added: See Note 4 "Fair Value Measurements" to our consolidated financial statements included in this Form 10-K for more information on cash, cash equivalents, and short-term investments.
We are exposed to interest rate risk on our borrowings that bear interest at floating rates.
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A hypothetical 100 basis point increase in interest rates on our floating rate debt as of December 31, 2022 and 2023 would increase our interest expense by an amount that is not material.
+Added: As our Green Convertible Notes have fixed annual interest rates, they would not have interest expense exposure associated with a change in interest rates;
+Added: however, the fair value of the Green Convertible Notes would be impacted as interest rates change.
+Added: The fair value of our Green Convertible Notes will generally increase as interest rates fall and decrease as interest rates rise.
+Added: The fair value of our Green Convertible Notes is also subject to market price risk due to their conversion features and can be affected when the market price of our Class A common stock fluctuates.
+Added: Their fair value will generally increase as our Class A common stock price increases and will generally decrease as our Class A common stock price decreases.
+Added: As we carry the Green Convertible Notes at face value less unamortized discount on our consolidated balance sheets, any fair value fluctuations are presented for required disclosure purposes only but do not impact our financial position, cash flows, or results of operations.
+Added: See Note 8 “Debt” to our consolidated financial statements included in this Form 10-K for more information our outstanding debt.
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.