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Note 10 - Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
10
.
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES:
 
The Company conducts business in various foreign countries and, from time to time, settles transactions in foreign currencies. The Company has established a program that utilizes foreign currency forward contracts to offset the risk associated with the effects of certain foreign currency exposures, typically arising from sales contracts denominated in Canadian currency. Instruments that do not qualify for cash flow hedge accounting treatment are remeasured at fair value on each balance sheet date and resulting gains and losses are recognized in earnings. As of
December
 
31,
2016
and
2015,
the total notional amount of the derivative contracts not designated as cash flow hedges was
$0.9
 million
(CAD$1.3
 million) and
$0,
respectively. As of
December
 
31,
2016
and
2015,
the total notional amount of the derivative contracts designated as cash flow hedges was
$3.4
 million
(CAD$4.5
 million) and
$6.3
 million
(CAD$8.7
 million), respectively. Derivative assets are included within Prepaid expenses and other and derivative liabilities are included within Accrued liabilities in the Consolidated Balance Sheets. All of the Company’s foreign currency forward contracts are subject to an enforceable master netting arrangement. The Company presents the assets and liabilities associated with its foreign currency forward contracts at their gross fair values in the Consolidated Balance Sheets.
 
For each derivative contract entered into in which the Company seeks to obtain cash flow hedge accounting treatment, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking the hedge transaction, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively and a description of the method of measuring ineffectiveness. This process includes linking all derivatives to specific firm commitments or forecasted transactions and designating the derivatives as cash flow hedges. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative contracts that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of these hedged items is reflected in Other comprehensive income (loss) on the Consolidated Statements of Stockholders’ Equity. If it is determined that a derivative contract is not highly effective, or that it has ceased to be a highly effective hedge, the Company will be required to discontinue hedge accounting with respect to that derivative contract prospectively.
 
All of the Company’s Canadian forward contracts have maturities less than
twelve
months as of
December
 
31,
2016.
 
For the years ended
December
 
31,
2016,
2015
and
2014,
gains recognized in Net sales from continuing operations from derivative contracts not designated as hedging instruments were approximately
$0,
$0.4
 million and
$0.1
 million, respectively. As of
December
 
31,
2016
and
2015,
there were approximately
$0
and
$0.1
 million, respectively, of unrealized pretax gains on outstanding derivatives in Accumulated other comprehensive loss. Substantially all of the amount in Accumulated other comprehensive loss as of
December
 
31,
2016
is expected to be reclassified to Net sales within the next
twelve
months as a result of underlying hedged transactions also being recorded in Net sales. See Note 
16,
“Accumulated Other Comprehensive Loss” for additional quantitative information regarding derivative gains and losses.