XML 24 R14.htm IDEA: XBRL DOCUMENT v3.7.0.1
Note 7 - Derivatives
3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
(7)
       Derivatives
 
The Company operates internationally and is exposed to fluctuations in foreign exchange rates and interest rates in the normal course of business. The Company, from time to time, uses derivatives to reduce exposure to market risks resulting from fluctuations in interest rates and foreign exchange rates.
 
All financial instruments involve market and credit risks. The Company is exposed to credit losses in the event of non-performance by the counterparties to the contracts. While there can be no assurance, the Company does not anticipate non-performance by these counterparties.
 
Foreign Currency Forward Contracts
 
The Company periodically enters into foreign currency forward contracts to protect against currency fluctuations of forecasted cash flows and existing balance sheet exposures at its foreign operations, as deemed appropriate. The Company
may
or
may
not elect to designate certain forward contracts for hedge accounting treatment.
 
For derivatives that are not designated for hedge accounting treatment, changes in the fair value are immediately recognized in earnings. This treatment has the potential to increase volatility of the Company’s earnings.
 
None of the foreign currency forward contracts entered into during the
three
months ended
March
31,
2017
and
2016
were designated for hedge accounting treatment. The notional amounts of the Company’s outstanding foreign exchange forward contracts were
$35,553
and
$20,896
at
March
31,
2017
and
December
31,
2016,
respectively. The Company does not hold or purchase any foreign currency forward contracts for trading or speculative purposes and no contractual term is greater than
twelve
months.
 
The fair value of the Company’s foreign exchange forward contracts outstanding was a loss of
$4
and a gain
$125
at
March
31,
2017
and
December
31,
2016,
respectively. Losses are recorded in “Accrued expenses and other current liabilities” and gains are recorded in “Prepaid expenses and other current assets” on the balance sheet and “Other revenue, net” on the income statement.