Note 10 - Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 10: DERIVATIVES AND HEDGING ACTIVITIES

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

	Year ended December 31,
	2019		2020
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	14	$	—
Foreign exchange forward contracts		42		—
Total	$	56	$	—

The Company recorded the fair value of derivative assets in “prepaid expenses and other current assets” on the Company’s consolidated balance sheets.

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

	Year ended December 31,
	2018			2019		2020
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	(146	)	$	55	$	(8	)
Foreign exchange forward contracts		(285	)		385		640
	$	(431	)	$	440	$	632

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

	Year ended December 31,
	2018		2019			2020
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	132	$	(27	)	$	(6	)
Foreign exchange forward contracts		222		(280	)		(682	)
	$	354	$	(307	)	$	(688	)

The Company recorded in cost of revenues and operating expenses, a net loss of $354, a net gain of $307 and a net gain of $688 during the years ended December 31, 2018, 2019 and 2020, respectively, related to its Hedging Contracts.