Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures about Market Risk
UTMD has manufacturing and trading operations, including related assets, in the U.S. denominated in the U.S. Dollar (USD), in Ireland denominated in the Euro (EUR), in England denominated in the British Pound (GBP), in Australia denominated in the Australia Dollar (AUD), and in Canada denominated in the Canadian Dollar (CAD). The currencies are subject to exchange rate fluctuations that are beyond the control of UTMD. The exchange rates were .8515, .8178 and .9071 EUR per USD as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively. Exchange rates were .7247, .7319, and .8029 GBP per USD as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively. Exchange rates were 1.3135, 1.2974 and 1.6285 AUD per USD on March 31, 2021, December 31, 2020 and March 31, 2020, respectively. Exchange rates were 1.2571, 1.2754, and 1.4118 CAD per USD on March 31, 2021, December 31, 2020, and March 31, 2020 respectively. UTMD manages its foreign currency risk without separate hedging transactions by either invoicing customers in the local currency where costs of production were incurred, by converting currencies as transactions occur, and by optimizing global account structures through liquidity management accounts.
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