Quantitative and Qualitative Disclosures About Market Risk
−Removed: The following discussion of the market risks we face contains forward-looking statements.
−Removed: Forward-looking statements are subject to risks and uncertainties.
−Removed: Actual results could differ materially from those discussed in forward-looking statements.
−Removed: Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof.
−Removed: Ziff Davis undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.
−Removed: Readers should carefully review the risk factors described in this document and in the other documents incorporated by reference herein, including our Annual Report on Form 10-K for the year ended December 31, 2023 as well as in other documents we file from time to time with the SEC, including the Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K filed or to be filed by us in 2024.
Interest Rate Risk
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The primary objectives of our investment activities are to preserve our principal while at the same time maximizing yields without significantly increasing risk.
−Removed: To achieve these objectives, we maintain our portfolio of cash equivalents and investments in a mix of instruments that meet high credit quality standards, as specified in our investment policy or otherwise approved by the Board of Directors.
+Added: To achieve these objectives, we maintain our portfolio of cash equivalents and investments in a mix of instruments that meet high credit quality standards, as specified in our investment policy or otherwise approved by the Board.
Our cash and cash equivalents are not subject to significant interest rate risk due to the short maturities of these instruments.
−Removed: As of March 31, 2024, the carrying value of our cash and cash equivalents approximated fair value.
+Added: As of June 30, 2024, the carrying value of our cash and cash equivalents approximated fair value.
Our return on these investments is subject to interest rate fluctuations.
−Removed: As of March 31, 2024 and December 31, 2023, we had $734.8 million and $737.6 million, respectively, of cash and cash equivalent investments primarily in funds that invest in U.S.
+Added: As of June 30, 2024 and December 31, 2023, we had $687.2 million and $737.6 million, respectively, of cash and cash equivalent investments primarily in funds that invest in U.S.
treasuries, money market funds as well as demand deposit accounts with maturities within three months or less.
Currently, we do not have interest rate risk on our outstanding long-term debt as these arrangements have fixed interest rates.
−Removed: As of March 31, 2024, the carrying value and the fair value of our fixed rate debt was $1.0 billion and $0.9 billion, respectively.
−Removed: This fixed rate debt matures as follows:
−Removed: $550.0 million in 2026 and $460.0 million in 2030.
−Removed: Interest rates have risen since these sources of financing were obtained, thus, we may not be able to refinance this fixed rate debt at similar rates when it matures.
+Added: As of June 30, 2024, the carrying value and the fair value of our fixed rate debt was $1.0 billion and $0.9 billion, respectively.
+Added: Following the Exchange Transaction described in Note 16 - S ubsequent Events to the Notes in Item 1 of Part 1 of this Quarterly Report on Form 10-Q, our fixed rate debt matures as follows:
+Added: $149.1 million in 2026, $263.1 million in 2028, and $460.0 million in 2030.
+Added: Interest rates have risen since certain of these sources of financing were obtained, thus, we may not be able to refinance this fixed rate debt at similar or favorable rates when it matures.
Further, our revolving credit agreement bears interest at variable rates.
−Removed: However, during the three months ended March 31, 2024, we did not need to draw on this revolving credit agreement.
+Added: However, during the six months ended June 30, 2024, we did not need to draw on this revolving credit agreement.
If we need to draw on the revolving credit facility in the future, we will be exposed to interest rate changes.
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To date, we have not entered into interest rate hedging transactions to control or minimize certain of these risks.
−Removed: Our investment in Consensus common stock, which has a carrying value of approximately $16.4 million as of March 31, 2024, is based upon the quoted market price of Consensus common stock.
−Removed: Our results of operations and financial condition have been and may be materially impacted by increases or decreases in the price of Consensus common stock, which is traded on the Nasdaq Global Select Market.
−Removed: (Losses) gains on the investment in Consensus common stock were as follows (in thousands):
−Removed: Three months ended March 31,
−Removed: Realized gain on securities sold during the period
−Removed: Unrealized loss recognized during the period on equity securities held at the reporting date
−Removed: $ (10,705) $ (20,345)
−Removed: The carrying value of investment in Consensus common stock as of March 31, 2024 was $16.4 million, or approximately 0.4% of the Company’s consolidated total assets.
−Removed: A $2.00 increase or decrease in the share price of Consensus common stock would result in an unrealized gain or loss, respectively, of approximately $2.1 million.
+Added: During the three months ended June 30, 2024, we sold our remaining investment in Consensus common stock and recognized a gain of $3.1 million, which is included in ‘Gain on investments’ in our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024.
+Added: Our investment in Consensus common stock was based upon the quoted market price of Consensus common stock.
+Added: Prior to the sale of our investment in Consensus common stock, our results of operations and financial condition were materially impacted by increases or decreases in the price of Consensus common stock, which is traded on the Nasdaq Global Select Market.
Foreign Currency Risk
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Our objective in managing foreign exchange risk is to minimize the potential exposure to changes that exchange rates might have on earnings, cash flows, and financial position.
−Removed: During the three months ended March 31, 2024 and 2023, foreign exchange losses amounted to zero and $0.8 million, respectively.
−Removed: Cumulative translation adjustments, net of tax, included in other comprehensive (loss) income for the three months ended March 31, 2024 and 2023 were $6.5 million and $(3.7) million, respectively.
+Added: During the three months ended June 30, 2024 and 2023, foreign exchange losses amounted to $0.4 million and $1.0 million, respectively.
+Added: During the six months ended June 30, 2024 and 2023, foreign exchange losses amounted to $0.4 million and $1.9 million, respectively.
+Added: Cumulative translation adjustments, net of tax, included in Other comprehensive (loss) income, net for the three months ended June 30, 2024 and 2023 were $(0.5) million and $2.5 million, respectively;
+Added: and for the six months ended June 30, 2024 and 2023 were $(7.0) million and $6.2 million, respectively.
We currently do not have derivative financial instruments for hedging, speculative, or trading purposes and, therefore, are not subject to such hedging risk.
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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.