XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Derivative Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2020
Derivative Financial Instruments [Abstract] |
Derivative Financial Instruments | NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS The Company’s primary exchange rate risk management objective is to mitigate the uncertainty of anticipated cash flows attributable to changes in foreign currency exchange rates. The Company primarily focuses on mitigating changes in cash flows resulting from sales denominated in currencies other than the U.S. dollar. The Company manages this risk primarily by using currency forward and option contracts. If the anticipated transactions are deemed probable, the resulting relationships are formally designated as cash flow hedges. The Company accounts for these contracts as cash flow hedges and tests effectiveness by determining whether changes in the expected cash flow of the derivative offset, within a range, changes in the expected cash flow of the hedged item. At September 30, 2020, the Company’s derivative contracts had remaining maturities of less than one and one-half years. The counterparties to these transactions had both long-term and short-term investment grade credit ratings. The maximum net exposure of the Company’s credit risk to the counterparties is generally limited to the aggregate unrealized loss of all contracts with that counterparty, which is $688 as of September 30, 2020. The Company’s exposure of counterparty credit risk is limited to the aggregate unrealized gain on all contracts. At September 30, 2020, there was no such exposure to the counterparties. The Company’s derivative counterparties have strong credit ratings and as a result, the Company does not require collateral to facilitate transactions. The Company held the following contracts designated as hedging instruments as of September 30, 2020 and December 31, 2019:
|  | September 30, 2020
|  | Notional |  | Latest
|  | Amount |  | Maturity
Foreign exchange contracts - Canadian Dollars |  | $8,279 |  | August 2021
Foreign exchange contracts - Euros |  | € 25,962 |  | February 2022
|  | December 31, 2019
|  | Notional |  | Latest
|  | Amount |  | Maturity
Foreign exchange contracts - Canadian Dollars |  | $15,932 |  | February 2021
Foreign exchange contracts - Euros |  | € 18,168 |  | February 2021
Foreign exchange contracts - Swiss Francs |  | CHF 661 |  | August 2020
For contracts that qualify as effective hedge instruments, the effective portion of gains and losses resulting from changes in fair value of the instruments are included in accumulated other comprehensive income (loss) and reclassified to sales in the period the underlying hedged transaction is recognized in earnings. Gains (losses) of $(376) and $261 were reclassified to sales during the three months ended September 30, 2020 and 2019, respectively, and $206 and $844 were reclassified to sales during the nine months ended September 30, 2020 and 2019, respectively. The following table presents the balance sheet classification and fair value of derivative instruments as of September 30, 2020 and December 31, 2019:
|  | Classification |  | September 30, 2020 |  | December 31, 2019
Derivative instruments in asset positions: |  |  |  |  |  |  |  |
Forward exchange contracts |  | Prepaid and other current assets |  | $ | 89 |  | $ | 226
Forward exchange contracts |  | Other long-term assets |  | $ | 36 |  | $ | -
Derivative instruments in liability positions: |  |  |  |  |  |  |  |
Forward exchange contracts |  | Accounts payable and accrued liabilities |  | $ | 813 |  | $ | 152
Forward exchange contracts |  | Other long-term liabilities |  | $ | - |  | $ | 29

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration