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Note 2 - Foreign Exchange Rates
3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Unusual or Infrequent Items, or Both, Disclosure [Text Block]

NOTE 2 FOREIGN EXCHANGE RATES

 

Foreign Currency Exchange Rates

 

Approximately 22.3% of our revenue for the three months ended March 31, 2025, was denominated in currencies other than the U.S. Dollar (USD). This compares to 21.5% for the same period in 2024. Our financial statements are reported in USD; therefore, fluctuations in exchange rates affect the translation of foreign-denominated revenue and expenses. During the three months ended March 31, 2025 and the year ended December 31, 2024, our most significant currency exchange rate exposures were to the Chilean Peso and Euro. Gross accumulated currency translation adjustments, recorded as a separate component of shareholders’ equity, totaled $41.6 million and $52.7 million at March 31, 2025 and December 31, 2024, respectively.

 

We are subject to foreign currency transaction risk due to fluctuations in exchange rates between the time a transaction is initiated and settled. To mitigate this risk, we use foreign currency forward contracts. These contracts fix an exchange rate, allowing us to offset potential losses (or gains) caused by exchange rate changes at the settlement date. As of  March 31, 2025 and December 31, 2024, we held 60 and zero open foreign exchange forward contracts, respectively, related to inventory purchases on letters of credit.