Liberty Energy Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosure about Market Risk Our consolidated financial statements are expressed in U.S. dollars, but, effective January 1, 2021, a portion of our operations is conducted in a currency other than U.S. dollars. The Canadian dollar is the functional currency of the Company’s foreign subsidiary as it is the primary currency within the economic environment in which the subsidiary operates. Changes in the exchange rate can affect our revenues, earnings, and the carrying value of our assets and liabilities in our consolidated balance sheet, either positively or negatively. Adjustments resulting from the translation of the subsidiary’s financial statements are reported in other comprehensive income (loss). For the three and six months ended June 30, 2022, the Company recorded foreign currency translation losses to comprehensive income of $3.0 million and $2.0 million, respectively. For the three and six months ended June 30, 2021, the Company recorded foreign currency translation gains to comprehensive loss of $1.3 million and $2.7 million, respectively. Other exposures to market risk have not changed materially since December 31, 2021. For quantitative and qualitative disclosures about market risk, in addition to foreign currency translation, see Part II, Item 7(a), “Quantitative and Qualitative Disclosures About Market Risk,” in the Annual Report.