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 .9555, .8790 and .8438 EUR per USD as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively. Exchange rates were .8224, .7388 and .7243 GBP per USD as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively. Exchange rates were 1.4484, 1.3759 and 1.3342 AUD per USD on June 30, 2022, December 31, 2021 and June 30, 2021, respectively. Exchange rates were 1.2872, 1.2656, and 1.2404 CAD per USD on June 30, 2022, December 31, 2021 and June 30, 2021, 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/or by optimizing global account structures through liquidity management accounts.
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