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Note 9 - Derivatives and Hedging
12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 9: Derivatives and Hedging

 

The Company invoices certain customers in foreign currencies. In order to mitigate the risks associated with fluctuations in exchange rates with the US Dollar, the Company enters into foreign exchange forward contracts for a portion of these sales and has designated these contracts as cash flow hedges.

 

The notional value of these contracts was $4.8 million at December 31, 2023 and $4.3 million at December 31, 2022. The Company recorded an unrealized loss in accumulated other comprehensive income of $0.3 million at December 31, 2023 and an unrealized gain in accumulated other comprehensive income of less than $0.1 million at December 31, 2022 related to the contracts.

 

Additionally, the Company entered into a forward interest rate swap contract during 2020 to fix the interest rate on a portion of its variable-rate debt from January 1, 2021 to June 30, 2023. The interest rate swap was designated as a cash flow hedge. The notional amount of the contract was $16 million at its inception and reduces throughout the term. The notional amount was $10 million at December 31, 2022 and zero at December 31, 2023. The Company recorded a related unrealized gain in accumulated other comprehensive income of $0.1 million at December 31, 2022.