Note 10 - Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE

10:

DERIVATIVES AND HEDGING ACTIVITIES

The fair value of the Company’s outstanding derivative instruments is as follows:

	Year ended December 31,
	2018		2019
Derivative assets :
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	—	$	14
Foreign exchange forward contracts		—		42
Total	$	—	$	56

Derivative liabilities :
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	14	$	—
Foreign exchange forward contracts		63		—
Total	$	77	$	—

The Company recorded the fair value of derivative assets in “prepaid expenses and other current assets” and the fair value of derivative liabilities in “accrued expenses and other payables” on the Company’s consolidated balance sheets.

The increase in unrealized gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows:

	Year ended December 31,
	2017		2018			2019
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	90	$	(146	)	$	55
Foreign exchange forward contracts		93		(285	)		385
	$	183	$	(431	)	$	440

The net (gains) losses reclassified from “accumulated other comprehensive income (loss)” into income, are as follows:

	Year ended December 31,
	2017			2018		2019
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	(90	)	$	132	$	(27	)
Foreign exchange forward contracts		(99	)		222		(280	)
	$	(189	)	$	354	$	(307	)

The Company recorded in cost of revenues and operating expenses, a net gain of

$189,

a net loss of

$354

and a net gain of

$307

during the years ended

December 31, 2017,

2018

and

2019,

respectively, related to its Hedging Contracts.