Quantitative and Qualitative Disclosures About Market Risk
+Added: Interest Rate Risk
We invest our excess cash primarily in commercial paper, corporate debt securities, U.S.
6 unchanged sentences
As a result of the COVID-19 global pandemic and the perceived increased credit risks associated with certain securities, credit rating agencies have issued downgrades and revised outlooks to negative for a number of issuers of the debt securities held in our short-term investments portfolio.
−Removed: Unrealized losses on available-for-sale debt securities at March 31, 2020 were not significant.
+Added: Unrealized losses on available-for-sale debt securities at June 30, 2020 were not significant.
Based on the credit quality of the available-for-sale debt securities that are in an unrealized loss position, and our current estimates of future cash flows to be collected from those securities, the Company believes the unrealized losses are not credit losses (see Note 3, “Short-Term Investments”).
Because of the short-term maturities of our financial instruments, we do not believe that an increase or decrease in market interest rates would have any significant impact on the realized value of our investment portfolio.
−Removed: If a 10% change in interest rates were to have occurred on March 31, 2020 , this change would not have had a material effect on the fair value of our investment portfolio as of that date.
+Added: If a 10% change in interest rates were to have occurred on June 30, 2020 , this change would not have had a material effect on the fair value of our investment portfolio as of that date.
+Added: In May 2020, the Company issued $287.5 million principal amount of Convertible Senior Notes, which bear interest at a fixed rate of 1.50% per year.
+Added: Accordingly, the Company is not subject to interest rate risk as a result of the Convertible Senior Notes (see Note 7, “Convertible Senior Notes”).
+Added: Foreign Currency Exchange Rate Risk
Our operations are primarily located in the United States, and nearly all of our sales since inception have been made in 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.