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DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS
NOTE 5:
DERIVATIVE INSTRUMENTS
 
The Company enters into foreign currency forward and option contracts with financial institutions to protect against the exposure to changes in exchange rates of several foreign currencies that are associated with forecasted cash flows and existing assets and liabilities. The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation.
 
The fair value of derivative contracts in the interim consolidated balance sheets at December 31, 2022 and June 30, 2023 were as follows:
 
   
Other accounts receivable and prepaid expenses
    
Other accounts payable and accrued expenses
  
   
December 31, 2022
  
Derivatives designated as hedging instruments
            
Currency forward contracts
  
$
-
    
$
(1,270
)
Derivatives not designated as hedging instruments
                
Currency forward and option contracts
  
$
8
    
$
(153
)
                 
Total derivatives
  
$
8
    
$
(1,423
)
 
   
Other accounts receivable and prepaid expenses
    
Other accounts payable and accrued expenses
  
   
June 30, 2023
  
   
Unaudited
  
Derivatives designated as hedging instruments
            
Currency forward contracts
  
$
-
    
$
(1,644
)
Derivatives not designated as hedging instruments
                
Currency forward and option contracts
  
$
-
    
$
(75
)
                 
Total derivatives
  
$
-
    
$
(1,719
)
 
The notional amounts of outstanding derivative contracts in U.S. dollars at December 31, 2022 and June 30, 2023 were as follows:
 
   
December 31, 2022
    
June 30, 2023
  
         
Unaudited
  
Derivatives designated as hedging instruments
            
Currency forward contracts
  
$
42,848
    
$
25,783
  
Derivatives not designated as hedging instruments
                
Currency forward and option contracts
  
$
16,082
    
$
6,482
  
                 
Total derivatives
  
$
58,930
    
$
32,265
  
 
The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is up to 12 months.
 
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in "financial expenses and others, net".
 
The effect of derivative contracts on the interim consolidated statements of operations for the six months ended June 30, 2022 and 2023 was as follows:
 
   
Six months ended June 30,
  
   
2022
    
2023
  
   
Unaudited
  
             
Operating expenses
  
$
293
    
$
1,517
  
Financial expenses
  
$
617
    
$
620