Note 4 - Derivative Financial Instruments

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

4. Derivative Financial Instruments

The Company enters into forward foreign currency contracts to mitigate its exposure to fluctuations in the U.S dollar value of forecasted transactions denominated in Swiss Franc. During the quarter ended September 30, 2015, the Company had forward foreign currency contract activity for which it did not elect hedge accounting for the forward foreign currency contracts outstanding as of September 30, 2015, but may elect to apply hedge accounting in the future. As a result, during the quarter ended September 30, 2015, the Company experienced unrealized losses within other expense in the consolidated statement of operations from the mark-to-market of outstanding forward foreign currency contracts. The Company expects potential volatility within other income (expense) in future periods for contracts for which the Company does not apply hedge accounting.

As of September 30, 2015, the Company had the following outstanding forward foreign currency contracts that were not designated for hedge accounting and that were used to reduce the exposure to fluctuations in the U.S dollar value of forecasted transactions denominated in Swiss Franc (dollars in thousands):

Notional Amount	Effective Date	Maturity Date	Number of Instruments
$6,646	June 12, 2015	Various dates through December 15, 2016	5

No forward foreign currency contracts were held by the Company prior to May 2015. The following table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet as of September 30, 2015 (in thousands):

	Balance Sheet line item	Gross amounts of recognized liabilities		Gross amount offset in consolidated balance sheet		Net Amount
Forward foreign currency contracts	Other current liabilities	$	342	$	-	$	342
Forward foreign currency contracts	Other noncurrent liabilities		84		-		84
Total		$	426	$	-	$	426