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, starting in 2017, 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 .8638, .8178 and .8529 EUR per USD as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. Exchange rates were .7425, .7318 and .7741 GBP per USD as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. Exchange rates were 1.3834, 1.2974 and 1.3964 AUD per USD on September 30, 2021, December 31, 2020, and September 30, 2020, respectively. Exchange rates were 1.2673, 1.2754, and 1.3323 CAD per USD on September 30, 2021, December 31, 2020, and September 30, 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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