Note 6 - Derivatives

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

( 6 ) 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

nine

months ended

September 30, 2017

and

2016

were designated for hedge accounting treatment. The notional amounts of the Company’s outstanding foreign exchange forward contracts were

$37,626

and

$20,896

at

September 30, 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 gain of

$193

and

$125

at

September 30, 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 revenues, net” on the income statement.