Details of the zero cost collar contracts as of December 31, 2021 are as follows (in thousands):


Date of transaction	Total notional amount		Month of settlement
May 13, 2021	$	39,000	January 2022 to September 2022
August 13, 2021	$	48,000	January 2022 to December 2022

The zero cost collar contracts qualify as cash flow hedges under ASC 815, “Derivatives and Hedging,” since at both the inception of the contracts and on an ongoing basis, the hedging relationship was and is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during the term of the contracts.

The fair values of the Company’s outstanding zero cost collar contracts recorded as liabilities as of June 30, 2022 and December 31, 2021 are as follows (in thousands):


Derivatives designated as hedging instruments:		June 30, 2022		December 31, 2021
Liability Derivatives:
Zero cost collars	Other current liabilities	$	5,677	$	2,020
Zero cost collars	Other non-current liabilities	$	1,348	$	—

Offsetting of derivative liabilities as of June 30, 2022 is as follows (in thousands):


As of June 30, 2022	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheets		Net amounts of liabilities presented in the balance sheets		Gross amounts not offset in the balance sheets					Net amount
As of June 30, 2022	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheets		Net amounts of liabilities presented in the balance sheets		Financial instruments		Cash collateral pledged			Net amount
Liability Derivatives:
Zero cost collars	$	7,025	$	—	$	7,025	$	—	$	(5,990	)	$	1,035

Offsetting of derivative liabilities as of December 31, 2021 is as follows (in thousands):


As of December 31, 2021	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheets		Net amounts of liabilities presented in the balance sheets		Gross amounts not offset in the balance sheets					Net amount
As of December 31, 2021	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheets		Net amounts of liabilities presented in the balance sheets		Financial instruments		Cash collateral pledged			Net amount
Liability Derivatives:
Zero cost collars	$	2,020	$	—	$	2,020	$	—	$	(2,060	)	$	(40	)

For derivative instruments that are designated and qualify as cash flow hedges, gains or losses on the derivative aside from components excluded from the assessment of effectiveness are reported as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative, representing hedge components excluded from the assessment of effectiveness, are recognized in current earnings.

The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the three months ended June 30, 2022 and 2021 (in thousands):


Derivatives in ASC 815 Cash Flow Hedging Relationships	Amount of Income (Loss) Recognized in AOCI on Derivatives					Location/Amount of Gain (Loss) Reclassified from AOCI Into Statement of Operations							Location/Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives

	Three Months Ended June 30,							Three Months Ended June 30,							Three Months Ended June 30,

	2022			2021				2022			2021				2022		2021
Zero cost collars	$	(6,477	)	$	432		Net sales	$	(1,796	)	$	475		Other income, net	$	184	$	(58	)

The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the six months ended June 30, 2022 and 2021 (in thousands).


Derivatives in ASC 815 Cash Flow Hedging Relationships	Amount of Loss Recognized in AOCI on Derivatives						Location/Amount of Gain (Loss) Reclassified from AOCI Into Statement of Operations							Location/Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives

	Six Months Ended June 30,								Six Months Ended June 30,							Six Months Ended June 30,

	2022			2021					2022			2021				2022		2021
Zero cost collars	$	(7,741	)	$	(1,693	)		Net sales	$	(2,558	)	$	986		Other income, net	$	55	$	(144	)

As of June 30, 2022, the amount expected to be reclassified from accumulated other comprehensive loss into loss within the next 12 months is $5,294

thousand.

The Company set aside cash deposits to the counterparties, Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”) and Standard Chartered Bank Korea Limited (“SC”), as required for the zero cost collar contracts. These cash deposits are recorded as hedge collateral on the consolidated

balance

sheets. Cash deposits as of June 30, 2022 and December 31, 2021 are as follows (in thousands):


Counterparties	June 30, 2022		December 31, 2021
SC	$	1,000	$	1,000

The Company is required to deposit additional cash collateral with NFIK and SC for any exposure in excess of $500 thousand. As of June 30, 2022, $5,290 thousand and $700 thousand of additional cash collateral was required by NFIK and SC, respectively, and recorded as hedge collateral on the consolidated balance sheet. As of December 31, 2021, $760 thousand and $1,300 thousand of additional cash collateral was required by NFIK and

, respectively, and recorded as hedge collateral on the consolidated balance sheet.

These zero cost collar contracts may be terminated by the counterparties if the Company’s total cash and cash equivalents is less than $30,000 thousand at the end of a fiscal quarter, unless a waiver is obtained.