DERIVATIVES AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES

NOTE 8: DERIVATIVES AND HEDGING ACTIVITIES

The fair value of the Company’s outstanding derivative instruments is as follows:

	As at December 31,
	2012		2013
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	158	$	—
Foreign exchange forward contracts		58		—
Total	$	216	$	—
Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Foreign exchange forward contracts	$	—	$	16
Derivatives not qualified as hedging instruments:
Foreign exchange forward contracts		112		—
Total	$	112	$	16

The Company recorded the fair value of derivative assets in “prepaid expenses and other accounts receivable” and the fair value of derivative liabilities in “accrued expenses and other payables” on the Company’s consolidated balance sheets.

The increase in gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows:

	Year ended December 31,
	2011			2012		2013
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	(102	)	$	177	$	108
Foreign exchange forward contracts		(181	)		69		175
	$	(283	)	$	246	$	283

The gains (losses) reclassified from “accumulated other comprehensive income (loss)” into income, are as follows:

	Year ended December 31,
	2011			2012		2013
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	(192	)	$	124	$	(266	)
Foreign exchange forward contracts		9			71		(249	)
	$	(183	)	$	195	$	(515	)

The Company recorded in cost of revenues and operating expenses, a net gain of $183, a net loss of $195 and a net gain of $515 during the years ended December 31, 2011, 2012 and 2013, respectively, related to its Hedging Contracts. In addition, the Company recorded in financial income, net, a net gain of $43, a net loss of $112 and a net gain of $112 during the years ended December 31, 2011, 2012 and 2013, respectively, related to derivatives not qualified as hedging instruments.