As of March 31, 2024 and December 31, 2023, other noncurrent assets included equity securities accounted for under the equity method with a carrying amount of $4.2 million and $4.9 million, respectively. No impairments to the carrying amount of the Company’s non-marketable equity securities were recognized in the three months ended March 31, 2024 and 2023.

The Company uses a foreign exchange hedging strategy to hedge local currency expenses and reduce variability associated with anticipated cash flows. The Company’s derivative financial instruments consist of foreign currency forward contracts. The maturities of these instruments are generally less than twelve months. Fair values for derivative financial instruments are based on prices computed using third-party valuation models. All the significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates, yield curves and credit default swap pricing.

The Company designates certain foreign currency forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) No. 815—Derivatives and Hedging. The effective portion of the gain or loss on the derivatives are reported as a component of accumulated other comprehensive loss (“AOCL”) in stockholders’ equity and reclassified into earnings on the Condensed Consolidated Statements of Operations (Unaudited) in the period upon which the hedged transactions are settled.

The notional and fair values of all derivative financial instruments were as follows (in thousands):


	Location in Balance Sheet	March 31, 2024		December 31, 2023
Derivative instruments designated as cash flow hedges:
Fair value—foreign exchange contract assets, net amount	Prepaid expenses and other current assets	$	271	$	1,184

Notional value held to buy U.S. dollars in exchange for other currencies		$	1,119	$	738
Notional value held to sell U.S. dollars in exchange for other currencies		$	49,581	$	45,468

All of the Company’s derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparty to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company's Condensed Consolidated Balance Sheets on a net basis.

The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s Condensed Consolidated Balance Sheets were as follows (in thousands):


	March 31, 2024			December 31, 2023
Gross amount of recognized assets	$	559		$	1,300
Gross amount of recognized liabilities		(288	)		(116	)
Net derivative assets	$	271		$	1,184

The changes in AOCL related to the cash flow hedges consisted of the following (in thousands):


	Three Months Ended March 31,
	2024			2023
Beginning balance	$	1,034		$	(94	)
Other comprehensive (loss) gain before reclassification		(422	)		859
Amounts reclassified from accumulated other comprehensive loss into net loss		(369	)		4
Net current period other comprehensive (loss) gain		(791	)		863
Ending balance	$	243		$	769

The following table summarizes the gains recognized upon settlement of the hedged transactions in the Condensed Consolidated Statement of Operations for three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
	2024		2023
Research and development	$	349	$	11
Selling, general and administrative		107		4
Total	$	456	$	15

For derivatives that were not designated as hedge instruments, they were measured and reported at fair value as a derivative asset or liability in the Condensed Consolidated Balance Sheets with their corresponding changes in the fair value recognized as gains or losses in interest and other income, net in the Condensed Consolidated Statements of Operations. These instruments were all re-designated as foreign currency cash flow hedges in July 2023.

For the three months ended March 31, 2023, changes in fair value on the undesignated derivatives were insignificant.